Introduction
Entrepreneurship is defined as the practice of starting a new business venture or renewing an already existing business based on new opportunities and ideas. It entails taking risks, being resourceful and venturing into the unknown business fields. This makes it to be associated with uncertainty (Shukla, 2009, para.2).An entrepreneur ensures development of a business idea by gathering the required finances and capitalizing on the idea. Recession is defined as the decline of economic activity during a particular period of time. Global recession results into a decline of economic activities in many countries over a given period of time. It is characterized by loss of jobs, reduction of the gross domestic product, decrease of investments, decline in household income and business profits. During recessions bankruptcies rise and the rate of inflation falls (Monaghan, 2009, para.1). This paper will discuss the sectors that can provide employment opportunities for graduates in and beyond a global recession. Since rates of unemployment tend to rise during a financial crisis, the paper will discuss how these graduates can use their entrepreneurial skills to get opportunities.
Sectors that can provide opportunities during recession
Burns (2007, p.7) asserts that entrepreneurial revolution is brought about by changes within the business environment. In addition, small firms are better at coping with changes than large firms due to their flexibility. Economic changes such as recession can therefore provide opportunities or lead into their creation. The service sectors are likely to provide employment opportunities since they are able to flourish due to subcontracting by the larger firms in difficult times. Graduates with entrepreneurial skills can take advantage of this and establish business ventures in the service sector.
Another sector which presents a high probability of business opportunities for graduates is the defense sector. This is due to the fact that the sector is unlikely to be affected by short term financial problems.For instance the UK defense sector was not affected by the recession but was instead preparing for growth and venturing into new markets in India. (Merinews, 2009, p.1).This would have provided the graduates with job opportunities. New markets are sources of jobs since more personnel are required as a result of the expansion programs undertaken.
Opportunities also arise from sectors that undertake various measures such as cost cutting and integration of rescue packages. Merinews asserts that “Additional growth opportunities stem from government cost-cutting measures which open up new market sectors” (2009, p.1).Project managers may be required to oversee projects arising from the cost cutting and rescue packages. This creates posts for graduates in project management. Entrepreneurial opportunities can also arise from incentive based contracts that result from financial problems of the previous contractors thus creating opportunities for other new people.
The financial sector is usually the most affected by the global recession. For instance the Bank of England was greatly affected and had to lower the interest rate. In addition, the British government had to include it in the $850 rescue package meant for banks. Due to problems of lay off and unemployment more people are likely to turn to lending institutions for financial assistance. This in turn strains the banks liquidity thus making banking operations to be strained during recession. One of the longest and worst recessions in UK was the financial crisis experienced between the years 2007-2009 (Monaghan, 2009,para.1).This recession affected both banks and investment firms and caused a 7% reduction of the manufacturing output. Though risky venture, the opportunity to establish lending services to people can be taken advantage of since banks reduce their lending to the small businesses. This reduction in lending to business can cause business to collapse and an entrepreneur can maximize the opportunity by establishing a business of the same kind or invest finances into the business hence preventing its failure and getting an opportunity to work. Self employment becomes an important venture for the graduate since they can establish small sized institution to deal with lending.
Enterprising graduates identify opportunities created when investments prices are low during the recession and take risks to invest in them during this period. According to Timmons and Spinelli (2009, p.23) an entrepreneurship opportunity always involves uncertainity.An investment opportunity during recessions entails taking the risk of uncertainty on when the stock markets will pick up and become beneficial.
Sectors that can provide employment opportunities beyond recession
Beyond the global recession many business, small and medium enterprises tend to pick up and experience high growth levels (Moutray, 2008, p.6). Companies which had previously laid off workers as result of decreased business activity hire them back and start recruiting more employees as a result of opened up market opportunities. The financial markets sector can provide opportunities for graduates. This sector provides opportunities for investment analysts and advisors, stock brokers as well as other jobs in the financial sector. Jobs involving trading of shares and stocks are as well created due to rising activity in the stock markets. It also offers an opportunity to sell the previous stocks incase the prices will lead to a targeted amount of profit. After recession, banks also generate new opportunities. This is as a result of increased activities and customers which creates the requirement for additional staff. Banks are also likely to come up with new products for their clients as a result of demands made during financial crisis. This provides graduates with the options of working in the banking industry which is one of the key sectors in the broad finance industry.
Small and medium firms have since time immemorial surpassed the large firms in job creation (Moutray,2007,P.4).The small growing firms are likely to create job opportunities in the expansion process and hence providing opportunities. Burns(2007,p.4) claims that in the UK small firms generate 62% of employment and over 25% of gross domestic product.The small sectors are therefore likely to provide job opportunities.
The travel industry is another sector likely to offer employment opportunities to graduates.The diverse sectors here include airlines, hotels and resorts. The airline industry opportunities include flight attendants, pilots, and engineers among others. During recession there is decline in both business and leisure travel due to high prices in the airline industry, deteriorating personal finances and policy changes on travel. This affects both tourists and businessmen who usually travel and the hotel industry which hosts these travelers. Employment openings usually increase after economic decline as result of demands and increased travel that is experienced after the crisis. When airlines prices go down and stabilize more tourists and business travelers are motivated to travel and hence boosting the hotel industry. The hotels, resorts and spa’s experience a boost in their business hence calling for additional personnel to cater to the rising number of customers.The boost in business provides graduates with high chances to work in the airlines, hotels and spas.
Another key sector likely to provide job opportunities is the insurance sector. During global recessions insurance companies suffer losses on their investments which yield little dividends and also underwriting losses. To recover their losses, most insurance sectors are likely to develop other insurance packages as well as promotion of the already existing ones. This creates job openings in the field of marketing within the insurance industry. Marketing opportunities are also likely to arise in many sectors in large proportions as many business in the process of recovery from the global financial crisis develop marketing strategies to help them get back to the market successfully and counter their losses which comes as an advantage to the marketing graduates. Companies hire personnel in marketing to help devise plans on the marketing aspect.
Another sector which opens opportunities to graduates during economic recession is the debt collection and reduction firms and agencies. These agencies are commonly referred to as recession proof type of ventures. The debt industry tends to prosper more during the difficult financial times since people and businesses borrow more to supplement their low finances. This leads to expansion of the debt field as they need more staff to work on the collapsing lending and mortgage institutions. According to Timmons (2009,p.24), the entrepreneurial process requires a team and hence job opportunities and entrepreneurship opportunities open up for the graduates to work as a team in the debt reduction and collection field. Graduates in the medical field are likely to get opportunities in healthcare since people still get ill during recession and hence health sector is recession proof and should be considered as an entrepreneurship opportunity by the medical graduates who would like to venture into self employment. (Roos, 2010, para.3)
Conclusion
In summary, global recession brings about variety of effects both at the individual and company level and graduates are faced with a difficult time searching for opportunities at a time when the level of unemployment and lay off is on the increase. During this period engaging in entrepreneurship is important in the recession proof businesses like credit firms and health care. Beyond recession companies that were affected are also likely to offer employment as they try to get back to the market.
Reference
Burns, P. 2007. Entrepreneurship and small business. (On-line). New York: Palgrave, MacMillan. Web.
Merinews.2009. UK Defense Sector Well Poised for Growth despite Global Recession. Web.
Monaghan, A. 2009. UK recession: it’s official but will it be the worst? (On-line). Web.
Moutray, C. 2008. Looking ahead: Opportunities & challenges for entrepreneurship And small business owners. (On-line).Washington: SBA Office of Advocacy. Web.
Roos, J. 2010. 3 Sectors to find the best recession proof business opportunities and help secure your future. Web.
Shukla, A.2009.What is entrepreneurship. (On-line). Web.
Timmons, J. & Spinelli, S. 2009. New Venture Creation. Entrepreneurship for the 21st century. (On-line). New York: McGraw-Hill Publishers. Web.