Is it possible to be an entrepreneur in times of crisis?

Unfavourable economic situations stimulate creativity and innovation, which can generate business opportunities. However, they force many people to move toward self-employment out of pure necessity. For all of these people, we offer some advice.

"The difficult moments of economic change in which we find ourselves give rise to more small businesses out of necessity, caused by unemployment, than from job interest or other motives of true business opportunities", explains the president of the Cámara de Comercio de Madrid, Salvador Santos Campano.

Another opinion on this subject is that of Patricio Rodriquez-Carmona, president of CEAJE (Confederación de Asociaciones de Jóvenes Empresarios): "A priori, it is not the ideal moment to start a business, but there are still many opportunities and other new ones are developing. It could also be a good moment to consider the option of self-employment."

For Rodriguez-Carmona "the situation is not the most positive for starting a business" and remember, "there are no more public assistance funds for entrepreneurs than there were before the crisis, and there are more restrictions on credit".

There is no margin for error. "In times of crisis you have to have a clear idea of business and not make mistakes, because there is little time for corrections", explains the Director General de Affirma, Carlos Zambudio.

"However, for some entrepreneurs, an economic environment full of challenges is a favourable moment for opportunities. The characteristics we associate most with entrepreneurs - the interest to take risks, the confidence in themselves and the capacity to think differently from the majority - distinguish themselves in a moment when the most conservative businesses are withdrawing investments and avoiding risks. Although success is not much more guaranteed under these conditions, the entrepreneurs should remember that previous periods of economic decline have been a fertile ground for the most solid ideas and companies." the British bank Barclays Wealth Insights explains in its latest study, "The Entrepreneur Faced With Adversity".

Logically, the most important thing for success in these moments is to find a needed activity which has a future. Also important is to develop a business with new and flexible formulas for a maximum reduction of expenses, with special attention to the analysis, the control and the work processes, according to the best practices of the industry.

Sectors that offer opportunities

Some of the sectors that are generating activities and offering good opportunities for business at this time are online advertisings, renewable energies, the health industry, the outsourcing of services, professional training, and legal and financing services, according to a study by Affirma

Advertising on the Internet is a tool that is growing more and more powerful, with annual investment in Spain that exceeds 310 million Euros and growing fast. The sectors most requesting this new type of advertising are finance, tourism and services. The demand for graphic designers and creative people is on the rise.

Renewable energies offer great opportunities under the direction and assistance of several distinctive Administrations. Solar energy, wind energy, biomass fuels....are clear alternatives for the future. Also, biotechnology and the health industry are good market niches. The demand for technologies and medical services is very high and will continue to grow.

Another sector of the future is that of externalization of services or "outsourcing". In difficult times, companies reduce personnel and resort to external suppliers. This increases the demand for computer, administrative and marketing services. The Asociación Española para la Calidad forsees a median sustainable growth rate for this sector of 10% over the next few years.

The demand for professional training is also increasing, especially in courses in the fields of mechanics, nurse's assistant, pharmacy, hospitality and administrative assistant. The demand for professors is experiencing parallel growth.

Finally, it is important to remember that when economic problems increase, the requests for lawyers and economic and financial advisors also increase. Processes such as dissolving a company, employment regulations, or temporary closures require the services of specialized persons. The different services of financing also enjoy good health.