Over the past quarter-century, the global economy has weathered two significant economic storms—the Great Recession of 2007-2009 and the COVID-19 pandemic-driven financial crisis. The aftermath of these events has left us with a buzzword: “recession-proof.” This term has become a common refrain, resonating not only within the business and finance communities but also among everyday individuals.
The Great Recession, as documented by the Federal Reserve, began its ominous journey in December 2007, with the economy reaching its zenith. Over the course of nearly a year, the nation’s gross domestic product plunged by 4.3%, while the unemployment rate spiraled from under 5% to a daunting 10%.
Fast forward to the pandemic era, where unemployment rates peaked at 13%. However, as of July 2022, the unemployment rate made a remarkable recovery, plummeting to 3.5%. A notable side effect of the Great Recession was a surge in entrepreneurial spirit. Many opted to leave the confines of corporate America to pursue their own business ventures.
Thanks to the wake-up call that was COVID-19, even more individuals are now setting their sights on business ownership, particularly within industries that exhibit a higher likelihood of weathering economic tempests. But what are these resilient industries?
Industries That Stand Tall
Prospective business owners are seeking opportunities that promise stability, both in the present and future. While no crystal ball can foretell economic fortunes, insights from Transworld’s Main Street Market Report reveal industries that have been on the upswing in recent times. The top five industries with remarkable growth from 2021 to 2022 are:
- Restaurants — A remarkable 34%+ increase.
- Construction — A robust 38%+ increase.
- Beauty/Personal Care — A thriving 46%+ increase.
- Automotive — A resilient 38%+ increase.
- Medical-related — An impressive 18%+ increase.
So, why should you consider selling your business now? The burgeoning interest in entrepreneurship makes it an opportune moment to do so. The resilience demonstrated by these five industries during challenging times makes them particularly appealing to potential buyers.
Industries in Motion
Looking ahead, what industries show promise for sustained growth? By deal volume, the industries that have been performing exceptionally well include:
- Restaurants
- Construction
- Beauty/Personal Care
- Automotive
- Medical-related
Conversely, certain industries are experiencing declines. These include liquor-related businesses, real estate-connected ventures, business services, and ice cream/yogurt shops. Reduced consumption and shifting preferences have contributed to declines in the first two categories, while the latter two may be related to the normalization of life following the pandemic, along with increased mortgage rates.
The growing interest in entrepreneurship implies that more people than ever are exploring business ownership. Choosing an industry with a proven track record of resilience during economic fluctuations can mitigate some of the inherent risks of entrepreneurship.
If you’re contemplating buying or selling a business, now may indeed be the opportune moment. Transworld’s seasoned business advisors stand ready to guide you through your next strategic move. Reach out to us today to set sail toward your business future.
For more on selling or buying a business in Tampa Florida contact Tampa Business Broker Michael Shea of Transworld Business Advisors at 321-287-0349 .