Small Businesses Struggle to Survive; but some Entrepreneurs see an Opportunity

In a recession, small businesses are usually among the first victims. Banks and consumer credit cards know this, and continue to tighten credit lines and close accounts. Small businesses, who in tough times often use credit cards and lines of credit to pay employees or buy inventory, are now left with no option but to decrease expenses and lay off employees. Entrepreneurs seeking to start a new small business face similar hurdles in a recession. However, opportunities still exist for new business start-ups backed by adequate capital and/or owner-supplied financing. The costs of start-up are decreasing. For example, landlords are offering better lease terms in light of the rising vacancy rates, and build-out quotes are becoming increasingly competitive.