(Source: The News & Observer)

By Alan M. Wolf, The News & Observer, Raleigh, N.C.
Apr. 26--Opening a new business requires a dose of bravery in any economy.
The challenges only mount during a downturn. For starters, customers and lenders get stingier with money. Still, this recession, as in past slumps, is sparking a surge in wannabe entrepreneurs striking off on their own.
"Smart and hard-working people lose their jobs, sometimes with severance packages, and no one is hiring," said Thomas Miller, head of N.C. State's Entrepreneurship Initiative, established in July to foster start-up activity. "It's the perfect opportunity to take a shot at that good idea you've always had in the back of your mind."
With the state's jobless rate rising to record levels -- employers cut 41,300 jobs in March, and unemployment shot up to 10.8 percent -- it figures that more workers are considering other options.
Local organizations that help fledgling business owners, including Wake Technical Community College, SCORE and the Council for Entrepreneurial Development, report big increases in demand for classes, seminars and other assistance.
Some are ventures that will always remain one- or two-person operations. Many will fail. But a few could blossom into successful employers that bolster this region's economy.
A year ago, Wake Tech offered one Planning the Entrepreneurial Venture course. Now there are four, with two more starting soon. The $65, 10-week class teaches students how to write a business plan, marketing basics and more.
"Does a business have legs, can you make money at it? That's one of the keys," said Fred Gebarowski, director of entrepreneurship at Wake Tech. "I'm providing a service by keeping some people from starting a business."
It's not just the newly out-of-work that turn out for classes. "Some people are still employed, but want to ramp up their side business, just in case," he said.
Audra George had a full-time job as a legal consultant in late 2007 when she started making speciality cakes, decorated cupcakes and other baked goods out of her North Raleigh home.
She was let go a few weeks ago. Now she's sinking all her time and energy into her business, Audra's Cakes and Creations.
"Of course it's scary," she said. "I always had the security of a job before this. Sometimes things do happen for a reason."
George, 37, makes four to five dozen cupcakes, as well as some rum and amaretto cakes, each week for A Southern Season, the gourmet food store in Chapel Hill. She's in talks with Whole Foods. And she sold her first wedding cake last month. The couple wanted a cheaper option than a traditional cake, so George made a small six-inch cake surrounded by 100 cupcakes.
As she started her venture, learning how to write a business plan was crucial. "I needed to figure out how many cupcakes I had to bake and sell to make a profit," George said.
And she's had to adjust her business model -- she resisted seeking wedding business at first. Now she's hoping word of mouth will attract more.