Recession, meet entrepreneurs.

Like Arianna Berkowitz, who started a new physical therapy and acupuncture practice in Columbia in April with the help of her husband Matt, a full-time accountant,.

Like Susan McArdle, who launched her own graphic design firm focused on wedding invitations after she realized her job with a design firm was in jeopardy in January.

And like Neal Shaffer, a former Examiner.com employee who started his copywriting and design firm around the time the newspaper folded in February.

Each is among a rising number of unemployed individuals, disgruntled worker bees and opportunistic souls nationwide who are going to work for themselves, figuratively thumbing their noses at a recession that has gotten the best of thousands of folks like them and their businesses.

The share of entrepreneurs among the people who became employed during the second quarter this year rose to 8.7 percent, according to consulting firm Challenger, Gray & Christmas Inc. That is up from 6.4 percent of those who gained employment during the first quarter, and more than twice the share of those who rejoined the work force in the second quarter last year.

And while the numbers don’t add up in Maryland — about 4,000 fewer limited liability corporations were formed in Maryland during fiscal year 2009, which ended June 30, than the previous year — anecdotal evidence shows the entrepreneurial wave is surging in the region.

Some individuals who started their own business just wanted to work for themselves. Others had to do it because they lost their jobs and could not find work elsewhere.

Then there are some rookie entrepreneurs who grew frustrated with corporate America, saw the mistakes of its ways into the recession and launched ventures they think addresses unmet consumer demand.

And while the failure of some of these businesses could be inevitable, most of these entrepreneurs say there is not a better time to start their own business, hang out a shingle and call themselves CEO.

“The workplace is much different than 20 years ago; it’s not as secure,” said J. Robert Baum, director of entrepreneurship research at University of Maryland’s Robert H. Smith School of Business.

That insecurity breeds more entrepreneurial ventures, which creates more competition and could undermine business at larger companies, Baum said. “It’s a rich and wonderful process,” he said.

It’s also stressful and can be costly. In addition to startup capital, entrepreneurs face certification requirements, staffing and payroll constraints and competition for business and workers — often all before the business makes a penny.

And, of course, entrepreneurs agonize over how much money they will reap from the venture, particularly in this economy. After all, they have to pay their personal bills, too.

SquareFeet is the creation of Stephen Goodman, previously director of business development for Baltimore software and consulting firm SmartLogic Solutions, and Jeffrey Shepherd, a former financial analyst at defense contractor SAIC. Both left their jobs to work full time on the new venture, which helps users find an apartment and gives them the scoop on what the neighborhood is like and what’s around their next home.

The two entrepreneurs came up with the idea after Shepherd moved into an apartment in Baltimore from St. Mary’s County, only to discover that the neighborhood didn’t have a park, stores and places to hang out. Goodman and Shepherd started developing SquareFeet in January, with the expectation of launching the site this fall.

While finding capital from investors has been difficult — they hope to secure $200,000 in seed funding — the duo is forming a partnership with Apartments.com to use the Web site’s listings. Goodman said investors, who don’t have as much money in the bank as they did in 2008, are looking to back projects that already are established.

“Delayed gratification has come into place, since there hasn’t been as much money flowing around,” Goodman said.

Before launching BodyWise Physical Therapy, Arianna and Matt Berkowitz secured about $250,000. And through contacts within the Howard County Chamber of Commerce, they were able to network and line up enough clientele to get the business off the ground.

As for office space, the Berkowitzes found about 2,700 square feet along Broken Land Parkway in Columbia for about $16 a square foot, or about $8 a square foot cheaper than the going rate.

When they advertised a part-time position that pays $11 an hour, the Berkowitzes received 50 job applications, with some overqualified for the position. BodyWise has two part-time employees and two full-time staffers, and expects to hire two more full-time employees.

The couple also created a financial cushion before the business started, estimating the practice wouldn’t turn a profit for up to the first 14 to 16 months.

Sharon Justice, on the other hand, hopes to generate about $1 million in revenue by this time next year. She launched a demolition company, Justice Construction Group LLC, this summer, shortly after losing her business development job with Baltimore contractor ARC Construction Services Inc.

She spent the summer getting her firm’s federal identification number and securing a business bank loan. Although she would not disclose the amount of the loan and companion line of credit, Justice said her “impeccable credit,” savings and mortgage with seven years remaining contributed to her success with the bank.

Justice said she has spent $5,000 starting up her business with legal fees, supplies, business cards and insurance. She said she is curbing costs by working out of her dining room and borrowing copy machines and fax machines from other companies.

(find the original article here)