RECORD NUMBER OF RECRUITMENT START-UPS STIMULATED BY RECESSION

The recent economic downturn provided the catalyst for a record growth in the number of recruitment entrepreneurs eager to go it alone, according to MacKenzie-Cummins Communications, Wales’s leading specialist public relations consultancy for the recruitment industry. 

Despite the last two years being one of the most challenging periods the recruitment industry has faced, with 1 in 5 recruitment consultancies throughout Wales and the rest of the UK forced to shut up shop permanently, the number of people starting their own recruitment agencies has more than doubled (up 117 per cent) since 2005. 

“Recruitment is one of the most entrepreneurial industries in Wales and the recession has prompted a number of would-be entrepreneurs to establish their own businesses – either through necessity as a result of being made redundant or an overwhelming determination to offer something different or better to what is already on the market,” said Paul MacKenzie-Cummins, director of MacKenzie-Cummins Communications. 

“Having been the second fastest growing industry in the UK with a six-fold increase between 1992 and 2008, the recession changed all this and recruiters saw billings plummet by an average of 25 per cent across the board over the last two years. 

“But since the turn of the year, there has been a noticeable, positive swing and we have seen a significant increase in enquiries from new businesses opening their doors for the first time and needing public relations and marketing support to help their fledgling businesses,” adds MacKenzie-Cummins. And it seems that being a smaller business has its advantages. 

“The majority of consultancies that suffered during the recent economic downturn were relatively large and invariably either forced to close permanently or they found themselves ripe targets for acquisition. However, as a recent report from Experian revealed, smaller businesses tend to fare better during tough trading conditions than their larger counterparts and are less likely to go insolvent.” 

Support Services Group, a leading specialist investment business that focuses exclusively on the recruitment sector, agrees with these findings. 

“Over the last two years alone we have successfully helped to launch over 50 new owner-managed recruitment consultancies and indications are that this number will continue to rise as we move into 2011 and beyond,” says Claire Armstrong, director of operations and policy at Support Service Group. 

“The economy is growing once more and individuals who are highly motivated with strong commercial acumen and a passion to offer something better than what is already on the market will do well,” adds Ms Armstrong. 

So despite the somewhat gloomy outlook within the sector, it would appear that the entrepreneurial spirit displayed by recruiters could help steer the Welsh economy away from the dreaded double-dip.

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About yourcareermatters
CareerMatters was founded as part of MacKenzie-Cummins Communications in 2006 by Paul MacKenzie-Cummins MICG (Member Institute of Careers Guidance), regarded as one of the UK's leading career's advice and guidance writers and specialist PR consultant for the UK recruitment industry. Since 2006 Paul has been the leading advice writer for Monster.com and CareerBuilder.com - the two biggest careers website in the world -tackling all aspects of workplace and management issues, job seeking, career change and hiring trends. In 2006, 2007 and 2008 his writing contributed to Monster winning the Best Employment Advice on the Internet Award for an unprecedented three times beating the likes of The Guardian, Learn Direct and Personnel Today on each occasion. And his work was a runner-up for the same award in 2009. In 2009 Paul was a nominee in the prestigious HR Journalist of the Year Award and Recruitment, Retention & Motivation Journalist of the Year Award. Paul has been commissioned to write more than 500 careers advice and guidance articles for a number of lpublications, from regional and national newspapers to industry publications and various career-specific websites in the UK and USA. Recently, Paul was the Technical Editor for career psychologist Dr Rob Yeung's Job Hunting & Career Change for Dummies (John Wiley & Son, 2007). Dr Yeung is better known as the TV psychologist for Channel 4's Big Brother and the BBC's Who Would Hire You? series. Clients include: Monster.com CareerBuilder.com MSN Careers (Europe) TheLadders TotalJobs SalesTarget.co.uk IntaPeople Recruitment Lifetracks/YouthNET MediaSalesJobs The Press Gazette

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