There’re certainly better climates in which to avoid paid employment and start a business. I thought I’d link to a couple of articles today that provides a snapshot as to where we are.
Capital Crunch for IT Startups – yes, I wish that read Cap’n Crunch for IT Startups, but alas, no. The global credit crunch and subsequent economic downturn here in New Zealand is beginning to affect opportunities for capital investment – which in a way is good really, as it places a stronger emphasis on the quality and focus of start-ups seeking venture capital. Will be an interesting one to keep an eye on down the road as we haven’t yet determined whether or not venture capital is required.
Tough financial times present new opportunities for the financial services sector, which – as we identified on our retreat – is where our core goals ultimately lie. I still keep telling people I’m in software development! There’s a stronger focus on fiscal responsibility and along with it, the motivation for people to seek out solutions to cope with rising living costs.
This is a good thing for us, as coming from the software development industry we know that educating the market is an expensive exercise. I doubt that levels of concern around business and personal finances would have been as high this time last year.
The Herald reports that families are getting creative to make ends meet by shopping smarter, selling off old items on TradeMe, setting up home businesses, or simply seeking financial advice. Depending on PocketSmith’s consumer appeal, we have long thought that the product would be of use to those who manage household finances.
Another sign of the times: defaults and arrears are trending up. Small-to-medium enterprises (SMEs) are being hit particularly hard, and according to the article, defaults are up by a staggering 24%.
Here’s hoping we can help make a small difference in the months to come.
Edit: And Rod’s retired from blogging, oh dear!
