We’ve all read that small businesses are the backbone of the U.S. economy. It seems logical to assume that the small business market must shrink during a recession. In fact, the opposite is true. These are the types of misconceptions that marketers to small businesses must expose in boardrooms and budget meetings to be successful during a recession. This article is the first in a four part series highlighting the strengths of marketing investments in small businesses, as compared to consumer or enterprise alternatives, in the next 24 months. During downturn economies, not only does the net number of small businesses grow, but the number of start-ups actually increases vs. previous years. Trouble in the corporate sector tends to serve as a launching pad for would-be entrepreneurs. Where do all of the smart, aggressive, educated, A-type personalities at Lehman Brothers, Goldman Sachs, and AIG go when their firms make massive layoffs or cease to exist? Many of them start their own business. If history serves as a guide, the number of new businesses spikes as recessions get deeper.
Not only does the small business market offer continued growth during a recession, it also offers relative stability. Take a look at the growth rate of the small business market vs. that of consumer spending. Consumer spending sports impressive growth rates during the best of times, but also suffers wild swings during recessions. Conversely, the small business market offers a more stable source of revenue through good and bad economies. Year-over-year peak-to-trough changes in the small business growth rate are less than a third of the drops seen in discretionary consumer spending. The small business market is not only an important source of diversification for enterprise companies, but also a relative safe haven for investment during recessions. 
