Is This the Right Economy to Start a Business in? Which Industry is Most Promising?

The economy is ever changing, and experts have predicted a potential recession in 2023. However, an economic downturn has yet to happen, but many experts still believe a recession could happen in the next few years. While the prospect of an economic downturn is concerning, indicators suggest it’s still a good time to start a business.

Online platforms like freelance marketplaces, website-building programs, and social media make running typical business services more accessible and inexpensive. These technologies make it a good time to start a new business venture even during economic slowdowns.

In the first three quarters of 2023, there has been an increase of $47 billion in spending for services, and a $36.7 billion increase in spending for goods, according to the Bureau of Economic Analysis. This is partially due to inflated costs; however, the increases show that consumers are willing to pay for what they need. Knowing that consumers are willing to spend despite financial concerns, future business owners should consider launching companies in tech, healthcare, and home improvement industries.

As we see record inflation increases on the cost of goods, gas, and utilities, service-based businesses prove to be low-cost alternatives to product startups or tech companies. Plus, business ventures without additional office space, employees, or anything more than a computer have little overhead costs.