It’s no secret that our economy is cyclical. Whether you like it or not, there will be good times and times that couldnâ€™t be possibly described as good. But itâ€™s what happens in the not-so-good times that dictates how and when the economy recovers. Many mega-corporations have been at the epicenter of this meltdown, but it will be small business that brings us back.
Millions of people have been laid-off, and the fear of unemployment continues to be real. But if you dig a little deeper and try to understand the basics of business, then you will see some forgotten truths once again show their face. More importantly, though, you will see how the unemployed will actually drag us out of this financial quagmire.
Any time that you choose to have a conversation about money and/or commerce, then the discussion must begin with risk. Risk is the forgotten element. Iâ€™m not talking about market risk, which is where most peopleâ€™s mind goes to. Iâ€™m talking about risk in its purest form. The essence of risk is that there is a possibility that something unwanted or unpleasant will happen. Yet itâ€™s those people that take and manage risk that actually help create commerce. And when you have lost your job and you are unemployed, then your tolerance for risk is reset, and you are in a great position to take a calculated risk and start a new business.
The truth is that there arenâ€™t a great deal of surplus jobs out there. In fact, there is a job shortage. Therefore, many people are forced into finding a way to make a living. Thousands of laid-off workers are starting their own businesses. If you think about it, almost all big businesses started out as small businesses. They began with an idea, and a person that was willing to take a risk. And when you are unemployed, and you donâ€™t have much to risk, then you are in a great position to build something great. Our entire capitalistic system was built on ingenuity and risk-taking. Over time, however, the risks being taken have shifted primarily to big business.
There is a lot of upside for those people that have nothing to lose, and it will be their ability to look at risk a little differently that will pull us out of this recession. Competition is alive again. Price and service finally matter again. These factors all contribute to the inevitable success of small business. Remember, those that take the risk get the reward. And when you donâ€™t have a lot to risk, then the reward is that much sweeter.