Entrepreneurs and Recessions: Do Downturns Matter?
The Ewing Marion Kauffman Foundation has issued a new report that examines the relationship between the health of the economy when a company is founded and its eventual success — or lack thereof. The report, Entrepreneurs and Recessions: Do Downturns Matter? (6 pages, PDF), found that whether a company is successful — as evidenced by having gone public — is not directly correlated to whether the company was founded during a recessionary or non-recessionary period. Indeed, given the smaller numbers of companies founded during recessionary periods, the report concludes that companies founded in tough times may have a higher likelihood of eventually becoming economically successful.