Friday, January 2, 2009

Why?

When large companies have layoffs in a recesson, some of the most qualified employees worry that they will be next. Some of them decide to start new companies. The perceived threat of a layoff provides the push needed. Recessions end. If a new company can survive for about one year during the recession, it can emerge as a rapidly growing company. A blog I saw elsewhere noted that large companies have to withdraw from small or emerging markets during a recession giving small companies a chance to penetrate these niche markets.

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