Late summer 2009 and we find ourselves amidst mixed signals as to the state of the current economy. Stock market movement has continued jubilantly in an upward trend signaling to some the road to recovery is at hand. Don't be fooled by the Washington spin machine though. The unemployment numbers and the unique perspectives on their calculation are troubling at best. Those relying on statistical information should use an abundance of caution to avoid a knee-jerk reaction. More will be revealed at the next meeting of the Fed where the pundits predict an air of "cautious optimism" will be revealed.
The recent trend in layoffs and unemployment may be improving, but we are still losing jobs. You can argue the exact numbers but the result is the same. So what does this mean for entrepreneurs? First, there are potentially millions of new entrepreneurs being born of this economy. They are not the atypical type entrepreneurs-the ones that start up a viral web business in the garage or invent the next groundbreaking widget. The new economy is producing a different genre of entrepreneur-the executive or professional type, with specialized knowledge and experience, large numbers of industry contacts and a solid business plan in the works.
Second, these entrepreneurs have a leg up in several categories. They typically have some savings and capital to contribute and can potentially bankroll a start up by themselves or with a few close contacts. They have a network of like-minded professionals in their circle that can also contribute. These key components may put them on the fast track to deploying a successful new business model.
Some of the key places to look for the new economy entrepreneurs to show up are in the business services sectors and area in which there are government sponsored programs and incentives like alternative energy. Some will be wildly successful, some will encounter the same stumbling blocks the average entrepreneur contends with-raising capital, launching a business, marketing successfully and generating revenues and profits before their burn rate catches up with them. For now there seems to be a sufficient amount of capital available for the right prospects, although the proverbial well is still somewhat parched.
As is the case in most recoveries, it's not the banks, brokerages, commodities, the Fed or stock markets that reveal the end of the darkness. Look to this new breed of entrepreneur in large numbers to lead the charge out of the recession and spearhead the new economy of tomorrow.