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:

  1. Over 50% of the Fortune 500 companies were founded during a downturn or a bear market
  2. Young companies, typically responsible for the bulk of US job creation, added 2.3m jobs in 2009 and 3m in 2008
  3. 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
  4. 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
  5. Firms with bosses whose professional baptism came in a weak economy have lower returns on assets than those run by other managers
  6. Those who begin their careers in a bust are less footloose than their boom-time equivalents
  7. 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

Enhanced by Zemanta