Bad Economy?

When a Wall Street financial firm let Kerschbaum go two years ago, finding new work was hard because his age made him less attractive to firms, he says.

He decided to make his talent for fixing clocks and his penchant for collecting them into a career.

At his cozy store surrounded by the melody of ticking clocks, Kerschbaum happily works seven days a week for an income that is meager but enough for him and his wife to live on.

There is no doubt small businesses have been hit hard by the financial crunch. Prospective entrepreneurs have plenty of reason to feel risk averse. Even in a good economy, the most successful businesses need a lot of capital, especially with tight credit markets, experts say.

Only 80 percent of businesses survive after the first year and the chances dwindle to 44 percent after four years, according to the Small Business Administration.

"It's not the ideal time, but that doesn't mean you can't do it," says Hallie Crawford, a certified career coach based in Atlanta, Georgia. "I think because of the way the economy is that you just have to be a little bit more careful."