Why may the global crisis be a great opportunity to set up a company ?

It is a fact, the word crisis uses to bring essentially pejorative ideas to our mind. But, we must instead consider the current crisis as a real opportunity for new-born entrepreneurs.

Lets list some of the main advantages of undertaking in Spain during the recession period.

• The main point is the lack of job opportunities. Since a crisis often generates an increase of the unemployment rate, there are a lot of available young or experienced workers over the market. A company may as a consequence be able to have a large choice when recruiting and so recrute high-skilled workers for lower cost. In Spain, the minimum wage is for example twice lower than the French SMIC.

• Then, the new company would benefit from the slowdown affecting markets. Indeed, during a recession period, big companies tend to cut down investment and the innovation appears to be lower. The competition is less aggressive than usual. This constitutes a major advantage for the new companies trying to develop new business or to launch innovating products. They will not be confronted to a market saturation and to compete with the powerful leading brands.

• Also, there is one thing that results directly from the low competition: a large cut in general costs. As the global production is decreasing, you will be able to deeply negotiate prices with your providers and so to get lower fixed costs. During crisis, the Real Estate tends to be less dynamic and the prices of the accomodation and  premises decrease.

• And last but not least, when undertaking during an economic crisis, we are relieved of a big burden: the risk. The new entrepreneur will not have anything to loose. Finding a fixed and safe job is almost impossible, which means that launching a business on your own becomes less risky.

• We may also consider the well-known common saying that after the rain comes the sun. Indeed, since the world economy complies with a logic circuit, every recession period  is followed by period of high growth and prosperity. Thus if you manage to successfully undertake during the crisis, your business will soon benefit from a thriving economy.

Lower production and labour costs, lower competition, lower innovation from part of the leading companies… well, the global environment seems favourable for undertaking processes!