newjerseynewsroom.com

BY ROHIT ARORA

COMMENTARY

Did the recession ever really end? Technically, we are in a recovery, but there is little growth in the economy, employment and wages are stagnant, home prices and consumer confidence both continue to drop, and retail sales are down.

The immediate future doesn't look bright. However, it may the best time for people with the entrepreneur itch to scratch it and go into business for themselves.

How can I advise starting a business when things seem so uncertain and credit markets are thought to be tight? There are several reasons:

1) Job growth is almost non-existent

Washington's stimulus efforts haven't worked. Meanwhile, corporations have reduced their work forces, gotten increased productivity and not ramped up hired when times got better. The result: higher corporate earnings but few new jobs. Those who have been out of work for six months or more now realize that the government and big companies are not going to create jobs for them. The answer is to create your own employment. If you dreamed about starting your own company, now is the time to take the bull by the horns (or the bear by its tail) and go for it.

2) Low cost capital is available

With housing sales down, banks are not making money from granting mortgages, yet financial institutions cannot generate profits without making loans. While the largest banks have other sources of income and strict lending criteria, smaller banks and non-bank lenders (credit unions, non-profit institutions, and others) are less stringent and thus more likely to lend to entrepreneurs. These lenders may not be as well known as the big guys, but they are making loans -- often at better interest rates than the large banks are able to offer. While some experts are saying that capital markets are too tight, the reality is there are lots of lenders out there looking to make loans. Do not be discouraged.

3) Technology makes it easier to go into business than ever before

All aspects of starting a business are easier now than ever before because of technology.

Searching for funding? You can find it online through a loan-matching website.

Don't know how to keep your books? You can search the Internet for a CPA or hire a free lance, part-time CFO through Elance.com, which helps thousands of businesses hire and manage online, instead of onsite. The site enables companies to find and hire qualified professionals without having to take on full-time employees.

Need help with your marketing? Conduct a Google search to find a local p.r. or marketing firm (they are all hungry right now) or take matters into your own hand by utilizing Facebook, Twitter, YouTube and other forms of social media. You don't need a journalism degree or marketing MBA to take advantage of the free resources on the Internet that can help you promote your business.

America has a heritage of entrepreneurship. Small business growth has historically led the U.S. out of the past recessions. This is likely to be the case again during the current downturn. Small businesses create two-thirds of the new jobs in this country. Creating an atmosphere to nurture and develop start-up companies is vital to America's recovery.