This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kauffman Smallbiz Expert On Taxes, Fiscal Cliff

Q. Is this a good time or a bad time for someone to start a company?

A. My own personal view is that it's never a bad time to start a company. There are good cases to be made that starting in an economic expansion is great because consumer demand is high and people will spend money. There's arguments to be made that starting in a downturn, whether it's a recession or a bear market or a sluggish recovery is also a good time. If you're a tech startup for example, the demand for technology has been pretty constant the past few years. IPad sales went through roof at a time when the economy was deep in a recession. That's obviously a big company, but lots of other companies have glommed on to that heavy tech spending. There's also schools of thought that say if you start up in a recession, it's sort of a trial by fire. If you start up in hard times, and you survive, there's less competition and you come out of it stronger.

A few years ago, we did a count of Fortune 500 companies, and over half of them were founded either in recessions or bear markets. That's not simply a reflection of, well, they started in a recession, therefore they're better. I think it's a reflection of, if you have an idea or if you create an opportunity or if you're in a university and you've stumbled across some discovery, there is that entrepreneurial drive ... and the macroeconomic environment doesn't matter if you come up with that idea. There's not necessarily a one-to-one corresponding relation between the macroeconomic environment and the demand for and supply of new ideas and innovation.

Q. Given what has happened in the economy the last five years, is it going to be harder to be a small business owner and expand your company in the next five to 10 years?

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs