For many Americans, news of economic recovery is tempered by predictions on how long it will take for the recession to officially end. But for the people of Cape Girardeau in south east Missouri, the business formation rates bring nothing but bright news.In 2009, 168 small businesses opened in Cape Girardeau and only 47 closed, reports the Southeast Missourian. This reverses the trend of the previous two years when more small businesses closed than opened.
In spite of the recession, locals believe the fledgling businesses will hold their own in the market and help restore the community’s economy.
The business owners have admitted that there are challenges to starting a business in downturn, with one entrepreneur telling the source, “It’s definitely not business as usual.” Nonetheless, they are hopeful, too.
The new business owners in Missouri face higher minimum wages that will impact their businesses, and startup business owners around the nation face ever-increasing government regulations.
Still, risk-taking entrepreneurs who incorporate a business in these trying times may find success. Data from the Small Business Administration says that recessions play an important role in launching new companies, reports Business Week.