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Even with the economy tanking and people losing their jobs left and right, not all is lost. The upside to a recession is that prices deflate, making it a little more affordable to start your own business. So why aren't people doing this?

Let's take a look at the benefits of starting a business during a recession. There are a few of them…

• Costs are lower, meaning you can get better rent on a location, pay less for equipment, supplies and services, and if you're cruel, get away with paying lower wages.
• Established, bigger businesses will be paying attention to simply keeping themselves in business, leaving you free to come up with creative new projects which can establish you as a leader in your field by the end of the recession.
• In a recession or depression, some industries are bound to collapse entirely, and be replaced by newer industries. If you can figure out what one of those new ones will be, you'll be racing out of the gate at the end of the recession.
• New businesses means more money moving around, into and through the market. This can help keep the economy from falling further down, and might even help rejuvenate it, and pull us out of the recession sooner, rather than later!

Of course, there are also some downsides:

• It's harder to get credit, and you'll really need to prove to the banks (or other lenders) that you're good for it.
• Although there's still seed and venture capital floating around, there's a lot less than during the boom times. Getting a piece of that pie will also be more difficult.
• In a recession or depression, some industries are bound to collapse entirely, and be replaced by newer industries. If you're not careful, you could find yourself as the last business in one of those dead industries.

So, if the economic downturn causes you to get laid off, start racking your brain for good, monetizable ideas. And start your own business! You'll help yourself, and you'll help all of us.