The recession has certainly put many people in the doldrums. But on the other hand, it’s said that recessions are often associated with periods of great business creativity, with some of the most successful businesses created during recessions. Why would this be the case? Listen

Dr. Mike Walden, North Carolina Cooperative Extension economist in the College of Agriculture and Life Sciences at N.C. State University, responds:

"Well, I think there are two key reasons for this. One, during recessions, resources are available. People are unemployed, so they have time to think about new products, new markets, and I think that's one reason why we get some good ideas during recessions. We need new businesses, new sectors. Secondly, I think the will to survive; if you're down, and you want to go up, this will often be a great motivator to spark creativity, develop new ways of doing things. This is really all part of what the famous economist Joseph Schumpeter called creative destructionism. It's something that always goes on, where you take the old, you rearrange it, you change things and something new and better will come out of it. And it actually goes on, as I said, all the time, but I think it does get heightened during a recession."