What is a potential disadvantage of starting a business at the end of a recession?

Starting a business at the end of a recession can lead to increased competition as economic conditions begin to stabilize and improve. Entrepreneurs may be encouraged by the recovering economy to launch new ventures, resulting in a crowded marketplace. This heightened competition can make it more challenging for a new business to attract customers and establish a brand presence, especially if established businesses are also looking to regain market share or innovate after the downturn.

While aspects like reduced consumer spending and difficulties in securing financing might still be relevant at the end of a recession, these are not as prominent as the competitive landscape that emerges when many businesses begin to re-enter the market. Similarly, higher operational costs may be a concern, but they're typically influenced by factors beyond just the economic cycle, such as location, supplier prices, or operational choices. Therefore, the primary concern about beginning a new business in this scenario centers around the intensity of competition that can make it more challenging to succeed.