It's not uncommon for there to be an upswing in the creation of new businesses in an economic downturn. One reason for this is that often experienced professionals are laid off and receive good severance packages which provides them the opportunity to start their own business. Growth in sole-proprietorship has been on a steady increase since 2000, according to the SBA and this may provide some support to the idea that businesses get started in an downturn. And since small businesses represent upwards of 75% of all new job, that's very good news.

According to a recent report from the Small Business Administration, there has been a 45% increase in the number of African-American owned businesses since 1997. Likewise, Hispanic-owned businesses have increased by 31% and there has also been a 20% increase in women-owned businesses during that same time period.

The cost of compliance with state and federal regulations amounts to an additional tax on business. According to the Small Business Administration Office of Advocacy, "small businesses pay an average of $6,975 per employee annually to comply with federal regulations -- 60% more than large businesses. Yet, small businesses generate 60-80% of all net new jobs, represent 99.7% of employers, employ have of all private sector employees, and innovate at a rate 13 times greater than large firms."