Economic downturn and bear market providers a great opportunity for entrepreneurs to start a new business.
The uncertainty of traditional business and financial markets is no longer a problem for entrepreneurs. They do not need to attempt in meeting demand for existing goods and services. It is a great time for them to invest or create products or services that customers never knew they wanted or needed.
The downturn and lockdown produce permanent changes in the way to do business. The employees can work at home and even goes electronically. It also promotes the development of data processing equipment. Also, the expenses spent in the companies can be greatly reduced. It only requires smaller expenses to employ workers. With low borrowing costs, existing companies can also find office space at a much cheaper price.
A study in bear markets shows that downturn inspires startups. Over half of the Fortune 500 companies were established in the downturn or a bear market. Those successful companies include General Electric, General Motors, IBM, Hyatt Hotels, Hewlett Packard and Microsoft.
The opportunities are there. With an expectation in a high employment rate, the lockdown may be a chance in a lifetime for entrepreneurs to turn their ideas into a product that might bring them billions of dollars.