Giving it a shot

Recession spurs startups

Eight months ago, Ashleigh Petet joined the ranks of thousands of unemployed Americans when she was laid off from her banking job.

Instead of trying to find another customer service position, a role she held for most of her adult life, she decided to make the best out of something most people dread. For years Petet wanted to take her career in a new direction by opening her own business, but was too scared to do it until the opportunity was forced upon her.

"I'm a lot more fortunate than I could have been," she said. "When it happened, I got the thought in the back of my head that, 'Well, I'll open up my shop finally.'"

Petet opened The Secret Garden, an overstock outlet for women's apparel in Rossville, about a month ago. She said though it was scary to start a business during the recession, she thinks what she is offering aligns with consumer buying habits right now.

"People are spending less, and they want to get more out of their money when they do spend and that's why they're coming here," Petet said.

She isn't the only one who has used the recession as a jumping off point to start up a business.

Dr. Ziad Keilany, an economics professor at the University of Tennessee at Chattanooga, said he's heard of more recent graduates pursuing entrepreneurial endeavors during this recession than in previous downturns.

"When a job is not available, you have to do something else, and the entrepreneurial creativity starts generating more curiosity about jobs," Keilany said. "The recession has a silver lining in that many people are now testing their entrepreneurial expertise."

It's not common for people to start up businesses during a tough economic time, he said, but the depth and duration of this recession has forced people to weigh their options.

Just as the recession was beginning, so was Elaine Richie's couture apron business, Pearls & Pot Pies. Richie has been selling her handmade, one-of-a-kind aprons at Chattanooga Market and other surrounding markets for the past three years.

When she began her small, home-based business, she was also working in the mortgage and real estate industry, but has since "taken a sabbatical" from her previous job and now spends most of her free time sewing aprons.

"I love what I'm doing," Richie said. "And I'm still covering my bills. It's a passion, and I love it."

During her time at the market, she's seen firsthand the effects of the recession on spending habits, and even had to reduce her original prices to entice people to buy.

"At the market it was really good the first year (2008), then it slowed down last year and this year I think people are just tired of the recession and they're ready to buy locally," Richie said.

Juanita Barbee, owner of Choo Choo Travel, opened her travel agency a year and a half ago, despite a slowdown in travel caused by the economy. She said opening her business during the recession has given her staff "time to really learn what we're doing before business picks back up."

For Leah Nelson, starting Geek OUTlet!, a home-based video game-inspired jewelry business, gave her the opportunity to help make money for her family and be her own boss. She said the benefits have outweighed the instability that goes along with the tough economy.

The added income from her business has helped her family when they've been in a pinch a few times over the past year.

"There was an instance where someone bought $50 worth of stuff from me, and that paid for a car repair we needed unexpectedly," she said.

Each of the local entrepreneurs said despite the economic struggles, they're glad they have the opportunity to pursue an avenue they once thought they couldn't.

Keilany said the businesses that have started during the recession still have a ways to go before it can be determined whether they'll last during good economic times.

"The test of the success or failure comes later," he said. "But I really admire those guys. At least they are taking the plunge and seeing if they can accomplish something."

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