By: John Glover (MBA)
As Election Day 2024 draws closer, recent job growth figures have injected some optimism into an otherwise rocky economic landscape. The Bureau of Labor Statistics reported 254,000 new jobs added in September, far surpassing expectations of 150,000. The unemployment rate also dropped from 4.2% to 4.1%, signaling resilience in the labor market despite broader economic uncertainties.
While the latest data boosts the Democratic pre-election pitch, the underlying reality is more complex. Economic concerns persist, with companies remaining cautious in hiring, and the potential for policy changes looms large depending on the election’s outcome. In this atmosphere of uncertainty, prospective entrepreneurs might hesitate to launch their ventures. However, starting a business in a less-than-perfect economy isn’t necessarily a doomed endeavor.
Alan Siege, CEO and host of The Pitch Show, argues that even during times of economic instability, entrepreneurship can still be a viable path. “You’ve been thinking about it for quite a while. Maybe you’ve even done some things to get it going. You know there’s more to do, but you’re not sure if you can do it,” Siege says. “Well, I’m here to tell you that you can. Businesses are born one step at a time, so take a chance, go beyond your comfort zone. If you’ve read this far, you’re ready. Your business idea is ready. You deserve to let it come to light.”
Siege’s words resonate in the context of today’s mixed economic signals. While some may argue that the prudent choice is to wait for clearer financial skies, others see opportunity in times of uncertainty. The recent uptick in job growth shows that while the economy has its struggles, there is still momentum. Wage growth continues to outpace inflation, suggesting that there are elements of economic health that aspiring business owners can leverage.
Historically, some successful businesses have emerged during times of economic hardship. Companies like Airbnb and Uber were founded amid the 2008 financial crisis, leveraging the market disruptions to carve out entirely new business models. This pattern reflects a fundamental truth about entrepreneurship: innovative ideas often find fertile ground when traditional structures are in flux.
“Entrepreneurship is not just about seizing opportunity; it’s about solving problems,” says Paul Greene, a small business consultant based in Boston. “And when the economy is rocky, there are often more problems that need solving. If you can identify a pain point that becomes more acute in an economic downturn, you can build a business that meets that need.”
The recent economic data also suggests that although companies may be cautious about hiring, they are still navigating how to adapt to new consumer demands and changing market conditions. This creates openings for startups that can operate with agility and innovate in ways that larger, slower-moving corporations cannot.
While the U.S. economy has added over 16.5 million jobs since January 2021, small businesses remain the backbone of economic growth and resilience. With September’s numbers exceeding expectations, some entrepreneurs view this as a signal that the economic environment might not be as daunting as it seems. If the labor market continues to strengthen, consumer confidence may follow, creating a favorable environment for new businesses.
“Challenges are the birthplace of opportunity. If we wait for the ‘perfect time,’ we might be waiting forever. Sometimes, it’s about making your move in an imperfect world.”
Indeed, data from the Small Business Administration indicates that small business formation often accelerates during periods of economic turbulence. When traditional employment feels less secure, entrepreneurship can be a pathway to not only independence but also potential economic revitalization. Many individuals facing layoffs or stagnant career prospects turn to starting their own ventures, using their skills and experience to create something new.
Of course, it would be misleading to suggest that starting a business in an uncertain economy is without risk. Capital may be harder to secure, and consumer spending patterns can be unpredictable. However, the very act of launching a business during challenging times can prepare entrepreneurs for the hurdles they’ll face later on. Resilient businesses are built on the ability to adapt quickly to changing conditions—skills that are sharpened when starting in a less-than-ideal economic climate.
“A rocky economy isn’t a reason to give up; it’s a reason to think creatively,” says entrepreneur and startup mentor Lisa Rodriguez. “It’s about finding a way to make things work even when the odds aren’t entirely in your favor. That’s what entrepreneurship is really about.”
The upcoming election will undoubtedly influence economic policies that affect businesses across the board, from tax codes to regulatory measures. However, as Alan Siege suggests, waiting for all uncertainties to clear may not be the answer. “If you’ve been thinking about it, now might be the time to take that first step. There will always be reasons to hesitate, but don’t let fear be the one that holds you back.”
The recent job growth data remind us that while the economy isn’t without its challenges, there are also reasons for optimism. For those considering starting a business, now may be as good a time as any to bring their ideas to life—one step at a time.
Disclaimer: The information and opinions presented in this article are for general informational purposes only and do not constitute financial, legal, or professional advice. Readers should consult with a qualified expert before making any business or financial decisions. The economic data and examples mentioned are based on publicly available information at the time of writing, and economic conditions may change. The views expressed are those of the author and do not necessarily reflect the views or policies of any organization or institution.
Published by: Annie P.
