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  • Do Something: “Startup”

    Recessions speed up the process of “creative Destruction,” killing businesses, leaving boarded-up windows on the high street as their gravestones. But it may also spur the creation of new businesses.

    THE list of famous companies founded during economic downturns is long and varied. It includes General Motors, AT&T, Disney and MTV, all founded during recessions. A 2009 study found that over half of Fortune 500 companies got their start during a downturn or a bear market. A recession, it seems, may not be an entirely bad time to start a company. Indeed, busts (and booms) cast a longer shadow on the business landscape than is commonly realised, because they influence both the rate of business formation and how existing firms are run.

    Some argue that recessions speed up the process of productive economic churn—what Joseph Schumpeter called “creative destruction”. The destruction part is easy to see: downturns kill businesses, leaving boarded-up windows on the high street as their gravestones. But recessions may also spur the creation of new businesses.

    Read Full Article in the Economist.com

    Good luck.

    Calvin Wilson
    Founder and CEO
    Upstart: Business and Management for 20-40 Year Old Professionals
    calvin.wilson1@verizon.net
    http://twitter.com/Upstart__Nation

    Filed Under: Startup/Entrepreneur

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    About the Author: The Economist offers authoritative insight and opinion on international news, politics, business, finance, science and technology. The Economist's website can be found at http://www.economist.com.

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