However, many leading entrepreneurs are arguing that this is actually the best time to start a business. Richard Branson was recently quoted as saying that "fortunes are made out of a recession. A lot of entrepreneurs get going in the economic depths because the barriers to entry are lower."
A good business idea is always a good business idea, regardless of the economic climate. And although access to finance may be more difficult to obtain, the current economic downturn has brought about plenty of positives for those considering a business start-up.
Rents for office space have dropped considerably in the last year, and the power has shifted firmly from the landlord to the tenant.
A good business idea is always a good business idea, regardless of the economic climate
With unemployment in the UK now standing at over 2 million for the first time in over a decade and many workers feeling insecure in their jobs, there are plenty of talented people that would welcome the chance to become involved in an exciting new business.
The majority of staff are also experiencing pay freezes or reductions. This means that if your new business is looking to recruit you can offer less money than would have been the case a year ago.
New business owners may feel like they are going it alone, but there is a host of advice and information available to new entrepreneurs to help their firm survive, and then thrive.
For instance, the British Chamber of Commerce have developed a business start-up pack which offers advice on banking issues, business insurance products and IT and telecommunications issues.
Any new business owners wishing to gain valuable business experience should check out the Erasmus for Young Entrepreneurs programme. The programme offers the opportunity for those with a new business, or with a viable business plan, to work in another EU country with an experienced business owner.
In any business environment there are certain rules that will always apply. Online business support service VentureNavigator has worked with entrepreneur and former Dragons' Den star Doug Richard to provide top tips to help out small businesses, such as how to cut expenditure and the best way to deal with suppliers.
The current economic downturn undoubtedly presents business start-ups with obstacles; but it also presents opportunities. With the raft of help and advice that is available, potential business owners should seize the moment.
