During a difficult economy such as the one we are experiencing today, it is especially important for the new entrepreneur to avoid getting trapped into a bad small business idea. There is less margin for error in a tough economy, and it's safe to say that some industries are higher risk than others for failure.

A case in point is the paper industry and anything related to it. For much of history paper has been the form of communication and storage for information, but this is no longer the case thanks to the digital revolution. Therefore, small businesses that are looking at investing in ideas that involve paper products are likely to struggle in the years to come. Bookstores like Borders, for example, are in the midst of liquidation while Barnes & Noble is not suffering the same fate due to the fact that they have focused on online selling and the E-reader market.