Read the article titled "
Downturn, start up - The effects of recessions on entrepreneurs and managers run deep" by the Economist. Some of the interesting highlights:
- Over 50% of the Fortune 500 companies were founded during a downturn or a bear market
- Young companies, typically responsible for the bulk of US job creation, added 2.3m jobs in 2009 and 3m in 2008
- Those who began their management careers during a bust were substantially more risk-averse, took on less debt and generally were more conservative managers than the rest
- Bosses whose careers began in a recession also tend to be so concerned about cost-effectiveness that the companies they go on to run spend less on research and development
- Firms with bosses whose professional baptism came in a weak economy have lower returns on assets than those run by other managers
- Those who begin their careers in a bust are less footloose than their boom-time equivalents
- The average recession-scarred chief executive is more likely to have risen through the ranks of a firm than the norm, and is less likely to have switched employers or jumped from one industry to another
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