Is a recession the perfect time to launch a technology start-up?

Entrepreneurs love economic downturns. So now should be a great time to be launching a start-up business, provided that the business model is viable…

That is certainly the view of Mike Butcher (Editor of TechCrunch) who has written in the Guardian with his views on why the current downturn is the ideal time for quality technology startups to get going.

One paragraph in his article makes some particularly useful points for an AQA BUSS1 or similar student:

“In a recession, human resources are cheaper as more skilled people come on to the market. Costs, such as office space and PCs, are lower. Business plans start to focus on clear revenue models, not crazy ideas. There is less competition as big companies can’t afford to innovate and startups run leaner and meaner, making them stronger when the good times return.”