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SINGAPORE: A number of Singaporeans have lost their jobs as a result of the recent global financial turmoil. Many are hunting for stable employment in the current period of uncertainty.
But observers said this environment is the perfect breeding ground for the next generation of entrepreneurs.
Henry Tan, former president, Spirit of Enterprise, said: "If you're having a cushy job, getting a big amount of money, then the push factor for you to go out is much lesser.
"But if there's really nothing, say you're either already retrenched, or about to be retrenched or you're not sure, then you might just take that leap because the loss is not much already."
Experts said there are distinct advantages to becoming an entrepreneur when the economy is bad. For one, start-up costs are relatively lower.
Elim Chew, president & founder, 77th Street, said: "There are opportunities as well because we look into things that are at a lower cost, especially like rental cost and also products at a better price.
"Now you can have talent and employ people at a good and affordable price. So there are opportunities, but there is also the other part where you have to be very careful."
Retrenched workers not only have cash payouts that can help them get started on a new business, they also have the skills and connections that will help start their own business in the same industry.
To ensure a higher rate of success, industry watchers said that businesses with low capital investments and overhead costs is a good place to start.
Trading and online businesses for example allow entrepreneurs to test the market response without incurring huge expenses.
According to the Department of Statistics, the number of start-up businesses increased by almost 2,000 between 2007 and 2008. But given the current economic crisis, this growth is expected to dip in 2009.
To encourage aspiring entrepreneurs, SPRING Singapore launched its SEEDS initiative last year. - CNA/vm
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