The economic crisis is great for internet business

The internet provides two important values. Those values are the main reason for it's existence in the first place, and are something that will help make internet even more important to people during the current economic downturn.

1. Cost-efficient solutions, products and services for nearly every business model out there

2. Connects people

"Who's afraid of the big bad wolf"

This song was the anthem of Great Depression, and it was featured in the Disney film "The Three Little Pigs" in 1933. Disney in those days was to entertainment what Pixar is today; THE innovation-in-entertainment company. Movie tickets during the depression were cheap, people were miserable and out work, so they had time to go to movies. They needed something that would cheer them up, and preferrably cheap. Disney pictures were perfect for that. And the company thrived through the long depression, and is today one the biggest media companies in the world. And they own Pixar.

Internet is great for entertainment. It is not only innovative but cheap alternative for everything about music, films, casual games, virtual worlds, you name it. Companies like Stardoll.com are in the perfect position to provide low-cost entertainment to people at a time when they need to cut down costs on many things, and still/therefore want to have fun.

Power of other people

It has been suggested in many studies that people's psychological state is more about self-preservation and community-driven during recessions. When things go bad to everyone, we are literally in it together. People bond easier if they have something in common, and peer support plays a lot bigger role during hard times. And when there is demand for peer support, people become more important to each other.

Creating new ways of being in touch with other people, and finding new people is obviously also one of internet's greatest strenghts. Internet is all about connecting people all around the world. I personally find this a beautiful and a meaningful thing that has much more value than can be measured in money. People do have the power if they are connected to each other. They can teach each others many things, make democratized news travel quickly, share feelings, share art, gather to talk about politics, and so on.

What else is good

Internet has also one great advantage right now: it has already had a dot-com bust 8 years ago. Internet companies have had to take a good long look at the mirror, and take all the air out of it's ego and balance sheets. The crazy years are over, and the current companies are more lean and mean than before.

Innovation in technology has been going forward full steam all these years, and there is no end in sight. The only obstacle is our own imagination. Starting a web business is cheaper than before, people can run their services in Amazon's or Google's machines, VC money is scarce (less competition), more freelance coders to join your project.

What else do you need?