The business news is bleak. There doesn’t seem to be a ray of hope coming out of any news broadcast. But as I’ve been talking with colleagues, most of whom are entrepreneurs, many have told me that there is probably not a better time to start a business. Now that’s the faith and optimism of entrepreneurs. Sure they know it will be tough. They didn’t expect to start with a lot of money when the economy was good, so I guess the fact that they won’t start with a lot of money when the economy is bad…well, they were always depending on their vision, energy, and talents…not economic conditions.  And as small as these startups are, they can adapt quickly to changing conditions.

I think economic instability and volatility are here to stay — certainly for the foreseeable future. And I think the whole idea of depending on the government or a large corporation to take care of you for the long haul is delusional. More than ever, I believe every person needs to develop entrepreneurial skills. Each person must learn how to create and deliver value. Every parent needs to prepare every child, not to “go to school so you can get a job” but to become educated and equipped to live entrepreneurially.

More ten years ago, Tom Peters was evangelizing this idea as Brand You ( see: The Brand You 50). He warned that jobs would be less secure, that in the corporate environment an individual had to learn how to stand out, and that individuals would increasingly work as “free agents.” Authors such as William Bridges (Jobshift) and more recently Daniel Pink (Free Agent Nation and A Whole New Mind) expand on the theme and provide practical advice on how to transform yourself into a free agent.

Other news I’ve come across only supports the trend and underscores the need to develop the skills and mentality for being self sufficient. This is quite a turnabout from a century or more of being in a “job world” — something that didn’t exist as the social norm for most of history, and which may have a less significant role in our future. Here are a couple of links to look at:

Rick Terrien, writing at sustainablework.com writes The great risk is in NOT starting your own enterprise. Writing in 2007, he foreshadowed the increasingly unstable economic conditions worldwide:

“The old way of thinking about starting your own business said that it was very risky.  The newer, smarter way of thinking about startups is the exact inverse. It is much riskier to NOT start your own enterprise under these economic circumstances.”

Earlier this year, Rick wrote about The New Artisan Economy. Here he makes note of a report published by Intuit on the future of business predicting that,

“The next ten years will see a re-emergence of artisans as an economic force.”

This echoes Daniel Pink’s assertion that the “right brain” types will drive the development of economic value in today’s economy. Which tracks with Richard Florida’s research on the impact of the “creative class” on economic development (see The Rise of the Creative Class).

One last bit to ponder. The dire economic news has focused heavily on investment banks and traditional banks. And these are typically credit sources for established corporations. Entrepreneurs starting new businesses, however, typically look to venture capital. The good news for startups that venture capital is less affected by short term economic trends because 1.) they work on a long fundraising time frames and 2.) they deal with liquid money, not credit. Chris Dannen writes about this in his Fast Company article, Wall Street and the New Startup Economy. Even though there is a realization that the marketplace is not walk in the park, here are a few comments that demonstrate the optimistic entrepreneurial spirit:

“But because venture capitalists work on long fundraising timetables and deal in liquid money, faltering banks and crises of credit don’t effect VC funds as acutely as they do other institutions. That means startups can continue be free to innovate and grow, with money in the bank.”

“…venture capitalists will definitely revise their methodology in light of the bear market, but …  the flow of money isn’t being affected.”

“…small technology companies are particularly deft at taking advantage of a bad economy…”

“Companies started during a downturn are the ones that have proven themselves and developed great products … And ultimately, those are the businesses that sell.”

As I’ve been thinking about this, I was struck by the Biblical story of when the people of Israel, after years of wandering, were crossing into the Promised Land. As the people crossed the river into the land, they were not given “Promised Jobs” but rather a “Promised Land.” Each family was invested with land, startup capital, with which to provide for their families, create value, and do good. And this was done in the midst of hostile conditions with enemies on every side. Maybe this is a model from which to learn. We all have been given different kinds and amounts of capital — knowledge, experience, assets, relationships. This is our startup capital, and with good ideas may come the opportunity to secure more.

In these times, we will need to be as full of faith, and as resourceful, as those entrepreneurial tribes launching their first family enterprises. And I believe that it will be the persevering and creative efforts of individuals, family businesses, small businesses and those who invest in them that will provide the shovel to dig our way out of the economic morass.