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Recession = More Creativity + Higher Rates of Entrepreneurship

By: Jennifer Wang | February 3, 2009 12:11 PM

Roughly two weeks ago, T-Mobile UK aired a commercial featuring a flash mob taking over a train station with a smartly choreographed dance routine. Saatchi & Saatchi created this brilliant video, earning an impressive viral following.*

In spite of tough times--or perhaps because of them, as a recent study suggests--creativity is on the rise. The Creative Group found that 40 percent of marketing and advertising executives surveyed believed leaner budgets resulted in more innovative campaigns, and T-Mobile's new "Life's for Sharing" ad series certainly lends credence to the theory.

If a downturn potentially drives creativity in large companies, it seems likely that startups would be given an even greater boost. Stephen Fuller, the Dwight Schar faculty chair and public policy professor at George Mason University, believes exactly this, that a byproduct of the current recession will be a growth in levels of creativity and the number of small businesses.

Fuller explains that in good times, people stick with the status quo, but when things slow down, circumstances like unemployment will "activate" an entrepreneurial drive. This is perhaps the same reason people start businesses during good times, but necessity spurs action. "There's always opportunity in adversity," he says.

"There are tens of thousands of firms that succeeded that were founded in a down economy," he continues. And indeed there are, according to research firm Inside CRM, which lists some big-name companies like Burger King and MTV. "Some of the unemployed are out there starting the future AOLs and Apples. If I knew who they were, I'd invest in them," he jokes, perhaps half-seriously.
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* The elite advertising firm is hardly the first to use flash mobs as a way to generate publicity. In fact, the idea is more often associated with small groups like Improv Everywhere, which use Internet forums and social networking sites to organize "scenes of chaos and joy in public places"--not for business, but for fun. This just goes to show that while big organizations can execute great productions, the most novel ideas often spring from humbler sources.

7 Comments | | Posted under: Growing Your Business, Ideas, Marketing, Small Biz News, Startup, Success Stories, That's Odd

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7 Comments

Clothing | September 6, 2009 3:30 PM | Reply

Wow! Its imposible... I'm realy shocked :/

Dennis D Maliekal | February 6, 2009 2:42 AM | Reply

I agree that the recession gets the best out of us. It’s the time, when we realize to jump up and grab opportunities that come by us. These troubled economic times are what shake us to move out of the comfort zone and catch the entrepreneurial bandwagon.

http://entrepreneurshipandbeyond.blogspot.com/

Megan Dorn | February 4, 2009 2:32 PM | Reply

I completely agree that the recent rise in creativity is an indirect result of our economic downturn, but I also think that all businesses are realizing that creative marketing with new technologies is a must these days. Innovative marketing techniques are the future, and if businesses are being catapulted into this arena for financial reasons...then GREAT!

Megan @ PartnerUp
http://startup.partnerup.com/

Sharon Wilson | February 3, 2009 10:33 PM | Reply

We do need to be more creative in today's economy regarding how to secure income and entrepreneurship is a wise and effective way to gain some of the control back however even with its benefits building and maintaining a small business is still not a piece of cake nor is it not vulnerable to similar pressure and defeats.

http://www.spiritualpreneurs.com/

Health Care Solutions | February 3, 2009 3:26 PM | Reply

It is true that recession causes people to be more creative regarding how they secure income. It used to be safe to think that working at a company for 40 years would secure a living and retirement for most people. This is not the case with the current economy. The current economy forces people to be creative regarding how best to support their families. Many people are starting their own business due to the security that it provides. When you own your own business, you never have to worry about being fired. You also control your income and therefore, you never have to be concerned about a decrease in salary. The smartest people in today's economy have figured out what the current market needs and how best to get it to them. If you want to know the best business to start in this economy, visit www.theincomesolution.ourperfectbusiness.com

Martin Zwilling | February 3, 2009 2:57 PM | Reply

I also expect to see an increase in entrepreneurship if you have the right stuff, but I do recommend focus on more "recession proof" arenas. See my article "Recession Means Selected Startups can win Big" http://blog.startupprofessionals.com/2009/01/recession-means-selected-startups-can.html

Marty Zwilling, Founder & CEO, Startup Professionals, Inc.

andy brooks | February 3, 2009 12:52 PM | Reply

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Recession = More Creativity + Higher Rates of Entrepreneurship

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