Expert: Now is a good time to start up a business

Now might be a good time for individuals to start up their own business, as one industry specialist argues that recessions can provide "good opportunities" for entrepreneurs who are able to spot a gap in the market.

Kathleen Hall of SmallBusiness.co.uk noted that companies such as Microsoft and Burger King were founded during difficult economic conditions, but acknowledges that credit can be a problem.

She suggested that financial unions or Community Development Finance Institutions could provide an alternative for people unable to take out a business loan or unwilling to use their home as collateral.

A recent report from PayPoint found that more than half of Britons had considered starting their own small business, but decided not to take the plunge due to worries over start-up costs and other red tape issues.

Among those who would like to found a commercial venture, 34% favour online trade, while 28% are interested in service and consultancy.