Editor’s note: This article was first published in November 2010, during Spain’s recession, and refers to unemployment benefits running out, the prime minister of the time being blamed for the crisis and an imminent change of government.
Some people think that times of economic recession are not a good time to start a business. Nothing could be further from the truth: we’ll try to show that, for some people, starting a business in this situation isn’t an option, it’s a necessity.
If you’ve joined the ranks of the unemployed and you’re not worried because you think the crisis will be over before your unemployment benefit runs out, it’s only a matter of time before you realize that your benefit will run out before the country’s economy improves.
For the first time, I’ve seen genuine professionals from specific sectors in the unemployment lines. There’s no letup in this “purge” of professionals that’s under way. Big companies are financing themselves by delaying their employees’ wages and negotiating with their suppliers. This is a very common, logical and socially accepted measure.
Now more than ever, the time has come for you to prove your worth by starting your own business: if you did your job for another company, I’m absolutely sure you can do it for your own. It’s a matter of confidence, and we know that once you get past the initial fear of starting out, you’ll be able to make it.
Right now, a country doesn’t need workers, let alone more civil servants. What it needs are self-employed people and people who create jobs.
Don’t expect the government to bail you out, because it won’t do so for at least 4 years, whoever is in power. And as far as I know, unemployment benefits don’t last 4 years, and one of the next measures could be scrapping the €420 family support payment.
If you’re waiting for a change of government, which I expect will come very soon (for better or worse, I can’t say), because the current prime minister is blamed for getting us into this recession and, at this rate, will be blamed for the end of the world too, let me tell you that the country may get better or it may get worse. Setting politics aside and looking at the economy in basic terms, the only way to refill the state’s coffers is the measure any company takes when it reaches that point: more staff cuts (civil servants) and lower wages to encourage hiring. Those are the main measures, and one way or another, they worsen workers’ quality of life.
So this isn’t about politics. It’s about you, your future and your family’s well-being, which is why, for you, starting a business is a necessity.
Now, to help break down your fears about starting your own business, we wrote an article explaining the advantages of starting a business in times of crisis, since it isn’t all disadvantages. You can read it here: Advantages of starting a business in times of crisis. In that article we explain how to take advantage of recessions and some points to keep in mind.
If your problem is simply and fundamentally fear, thinking that if the business doesn’t work out you’ll end up broke or something like that, I suggest reading this other article: How to lose your fear of starting a business, where we debunk some myths about entrepreneurship.
See also: The money game: know the rules
That said, the fact that starting a business has become a necessity doesn’t mean you should rush into it blindly. You’ll need to put together a solid business plan and a good market study to make sure your business succeeds.
Remember that if you decide to start your own business, the worst that can happen is that you fail. Once you’ve come to terms with failure, all that’s left is success.
There’s no success without risk and no victory without action. Success is never guaranteed, but only those who take risks find it.
Further reading
- The secret of success in business
- Common mistakes made by Hispanic business owners
- Differences between Hispanic and American entrepreneurs
- The entrepreneur’s mindset: advice from Donald Trump
- How to find business ideas
Featured image: Lojwe, CC0 1.0, via Wikimedia Commons.
