I read this article article a while back:
Five Reasons Why a Recession is a Good Time to Start a Company.

The article basically describes 5 different reasons:
1) It forces companies to be frugal.
2) New products and services will be scrutinized much more before investment can occur.
3) A recession leads to committed teams.
4) Companies that start now have a head start as their competitors tread water.
5) The economic difficulties toughen up companies.

I’d like to add my own entry to this list:
6) With the job cuts that are taking place, there is now some seriously good talent available.

During boom times, finding great talent is difficult to do (its tough all of the time, but especially when everyone is hiring). Small start ups have to fight very hard to attract skilled employees. The market gets flooded with thousands of companies looking for talent. However, during tougher times, layoffs and limited hiring can provide a great window for successful companies to grab high caliber people.