According to research by the UK Commission for Employment and Skills, businesses that start up during times of recession are hiring more people than their established counterparts – implying that they are more optimistic about their future.
These start ups are also more likely to provide training, recruit young people and offer internships/apprenticeships. These findings support the view that a recession can be a good time to start a business – with low rent, an available skilled workforce and with competitors burdened by historic costs.
The UK Commission for Employment and Skills surveyed 15,000 employers and found that 71% of businesses that are between 1 and 3 years old were optimistic about their future, compared with 44% for businesses that were more than 5 years old.
80% of new businesses have recruited staff in the last 12 months – double the overall figure of 43%. In addition, 47% of new businesses have recruited young people in the last 12 months, compared with 27% overall.