Add Vivek Wadhwa to the list of successful entrepreneurs who think there are benefits to starting a company during a recession. Writing in BusinessWeek, Wadhwa, who founded two technology companies, pushes the "less is more" theme hard.  Companies that have to make due with smaller budgets are much more likely to build strong sustainable business models, Wadhwa says.  Equity money, on the other hand, breeds bad habits and comes with a lot of baggage:

First, a CEO will usually feel pressure to bring in a "grown-up" management team. But seasoned managers want big salaries and large chunks of equity. VCs usually expect a portfolio company to use a preferred headhunter to find the rock star VP of sales. Naturally, the headhunter also wants an equity stake, on top of a finder's fee in the neighborhood of six figures. When the rock star manager arrives, he or she expects rock star perks—an assistant, first-class travel, etc. Now imagine these distractions aren't limited to one new hire but half a dozen or more. In my own experience, bringing in a new team meant remaining members of the original team stopped worrying about keeping costs down and didn't care as much if a sales cycle stretched out longer. And the new hires were eager to embrace this unhealthy attitude. It's an attitude that can quickly cripple and kill any new venture.

Second, bringing in outside money usually creates expectations of very rapid growth. VCs want a home run, not a single or a double. And they want the home run within five years or less. But founders, not outside investors, should determine the proper pace of growth for a company. And a founder who is about to lose his or her life savings is far more likely to drive a company towards profitability. A founder in this position turns every person in the company into a salesperson—and that's the best model for a scrappy startup. In the end, creating a culture that emphasizes long-term profitability over rapid growth is critical for success.

Furthermore, in an economic downturn like the current one, increasing sales quickly is far harder since consumers and businesses are spending less. So a focused, eager team is essential.

Read Why Less is More for Startups here.