Experiential / Reality-based Learning / December 17, 2010

Media Alert: December 17, 2010 Entrepreneurial Outlook: Is 2011 the Year to Start a Business?

Will 2011 be the year to take the plunge and start a business? Asher Epstein, managing director of the Dingman Center for Entrepreneurship at the University of Maryland’s Robert H. Smith School of Business is optimistic. He says entrepreneurs with good ideas should go for it – but proceed with caution.

Epstein’s take for 
entrepreneurs in 2011:

“I’m cautiously optimistic. As entrepreneur, we’re hard-wired to be optimistic. We see a lot of talented people out there with good ideas.”

Access to capital has improved

  • Angel investor community has gained confidence.
  • Legislation boost – extended tax cuts help investors, other legislation that could reduce capital gains tax on angel investments could spur more investments.
  • For entrepreneurs who need bank loans and credit, that continues to be a tough market, but businesses that are fundamentally sound still have opportunities for capital.
  • “Survival of the fittest” business ventures -- this environment promotes more efficient lending because the capital goes to the companies that are most deserving.

What’s hot

  • Clean tech
  • Web 2.0, social media and consumer Internet companies
  • Solving the world’s problems – there’s never a shortage of them (access to basic resources, clean water, sustainable fuels, etc.)
  • Labor market – there are lots of talented people looking for work that could help you build your business.

Challenges

  • Global uncertainty – debt concerns in Europe, North Korea’s nuclear threat, Iran threat, terrorist concerns, weak dollar, inflation concerned.
  • Potential for another tech bubble - too many investors chasing too few high-quality deals (twitter, groupon etc.)
  • There are always questions about where the world is headed and as an entrepreneur you constantly have to keep your eyes open for challenges and or opportunities that are out there.

Contact:
Asher Epstein, managing director of the Dingman Center for Entrepreneurship; 301-405-9510

Media Contact

Greg Muraski
Media Relations Manager
301-405-5283  
301-892-0973 Mobile
gmuraski@umd.edu 

About the University of Maryland's Robert H. Smith School of Business

The Robert H. Smith School of Business is an internationally recognized leader in management education and research. One of 12 colleges and schools at the University of Maryland, College Park, the Smith School offers undergraduate, full-time and flex MBA, executive MBA, online MBA, business master’s, PhD and executive education programs, as well as outreach services to the corporate community. The school offers its degree, custom and certification programs in learning locations in North America and Asia.

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