Recession a good time to start business

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.

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