Tom Selby, 28, has worked in the service industry for more than 12 years and currently manages an Italian restaurant in the Twin Cities.

Selby enjoys his job but said he would like to see more financial rewards for putting in 55-hour work weeks.

"I treat the restaurant like it's my own, but I'm at a point where I'd also like reap the economic benefits of my hard work," Selby said.

Selby wants to open his own restaurant and is in the early stages of developing a business plan.

Having worked in the industry for more than a decade, Selby is confident in his knowledge of the restaurant world. But how he will finance his entrepreneurial dream is a worry for him.

"With the economy in the current state, it seems like the last thing anyone wants to do to is loan out money, but I've only just started exploring my options," Selby said.

Selby's concerns are justifiable, the Small Business Administration reports its principal loan program approved 28,000 fewer loans in September than it had the same time last year.

But with the Labor Department reporting employers cut jobs at the fastest pace in more than five years in September 2008, many people -- such as Selby -- wonder if now is the right time to try their hand at a small business.

Is Now A Good Time?

"Despite the poor economy, people need products and still want to eat and live," said Lori Karis, owner of organic baby-food maker Sweet Cheeks.

Karis has a good idea of what it's like in the small business world; she started hers in June.

Karis, a nanny for 24 years, said she wasn't deterred by the economic downturn.

"Regardless of the economy, I think people are going to pay a premium for certain things and perhaps cut corners elsewhere. It's also a time when a lot of people that are being laid off are beginning small businesses to survive," she said.

Dr. Chad Moutray, the Chief Economist for the Office Of Advocacy of the Small Business Administration, believes if a businessman prepares properly there is always an opportunity to be seized.

"Make sure you do your market research, make sure you have a business plan, but most of all be prepared for the market to be down for a couple years if that continues to be the case," Moutray said.

Moutray said with a lot of large business struggling and moving out of some locations that leaves potential spots for small businesses to move into.

According to Moutray, now may be a good time to start a business because interest rates are lower.

"Interest rates are nearly 3 percent lower than they were last year, which is significant," Moutray said.

With the economic downturn in the U.S., Moutray has seen an increase in exports and companies trying to make money overseas.

"That seemed to be working for a while for companies but it appears Europe and some other countries have caught a little bit of our sickness."

Financing Early On

To help get her enterprise off the ground, Karis opened up a business checking account and credit card through the same bank.

When the time is right, Karis is hopeful that her banking institution will help finance her business' growth.

"My banker remains optimistic, even with the current state of the economy, that by building credit with my bank we are confident they will help me with future expansion issues."

Karis said she loves to imagine the growth of her business but doesn't want to get too ahead of herself.

"I'm pretty focused on the here and now, but I really want to maintain the integrity of my product and grow at a rate that doesn't compromise that," she said.

Sustained Source Of Income

According to the SBA, only two-thirds of new businesses survive for at least two years. With the odds stacked against small business owners, a sustained source of income can minimize damaging one's livelihood.

Karis, who is single, continued to nanny during the week and sell her baby food at farmer market's on the weekends. Since September, Karis has focused on Sweet Cheeks full time.

"It was hard to juggle both … initially, I wasn't sure if it would sell, and now that my baby food is being carried in retail locations, I feel like it is something I need to devote my total focus and energy to," she said.

"It would be great to have a second income as backup but at the same time am not sure I'd be pursuing financing if I were risking my family's stability. It feels easier to take the risk knowing I'm only affecting me," she said.