Some Entrepreneurs Are Thriving in these Tough Times
Tuesday, August 05, 2008PAUL KANGAS: The risks to growth the Fed talked about aren't scaring many would-be entrepreneurs. Even in a recession, experts say it's possible for a good, well-targeted business idea to take off. And as Darren Gersh reports, losing a job is sometimes good motivation to make the leap from employee to owner.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: For a young MBA, Manhattan has been the place to make a fast start in financial services. But last May, Daniel Kamen learned everyone is disposable in this economy. After losing his job, he decided to hire a new boss -- himself.
DANIEL KAMEN, ENTREPRENEUR: So, after a while of searching for opportunities, I said I'm going to make my own opportunity. I'm going to stop searching for it.
GERSH: Kamen is now trying to raise money for a new web site helping people find new and inexpensive ways to enjoy night life in New York. But is it really a good idea to start a business when the economy is not in the mood to party?
KAMEN: You're not the first person to pose that question to me. Everybody's talking about this quote/unquote recession. However, I find that there is a lot of good alternatives for new ideas and new businesses these days.
GERSH: With the credit crunch, finding a bank loan may not be easy, but at the University of Maryland business school, Asher Epstein says there are many ways for entrepreneurs to find the money they need to get up and running.
ASHER EPSTEIN, MANAGING DIR., DINGMAN CTR. FOR ENTREPRENEURSHIP: Oftentimes, the angel investment community, which are wealthy private individuals, have large amounts of money that they perhaps are looking for other alternatives, because the stock market is not performing well.
GERSH: Epstein says for entrepreneurs now, it's crucial to pick a business that does well in uncertain economic times, like donuts. Iraq veteran Ray Omar is scouting out locations to open a Dunkin' Donuts franchise at the new Navy Yard development in Washington, DC. This is not great economic times, whether you will call it a recession or not. Do you ever get second thoughts about starting businesses right now and opening a business?
ROY OMAR, MANAGING PARTNER, D.C. COFFEE KINGS: No. If I was a Starbucks, I might have second thoughts, but with the Dunkin' Donuts, it's a proven concept. I think if you laid back on the couch and pondered about when the economy is going to recover, you might lose that opportunity that is really there for you to take grasp of.
GERSH: Omar sees a bonus in the soft economy. Rents are down, making it easier to get started. And, the experts add, if you've been unsatisfied in your career and it's now gone away, you have less to lose in picking out a business that better suits your taste. Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.
