Yes, you can still start a small business during a recession. Some small businesses even thrive during a difficult economy. The following business ideas are viable during a recession.
1. Computerized Accounting Services
Make yourself more employable being a computerized accountant with knowledge of Excel, Access, Sage50
2. Affordable Luxury Items
Regardless of the poor state of the economy you can bet that every lady will always try her best to look gorgeous. A man will grumble and mumble about how unnecessary spending on beauty products is but the mere memory of how beautiful his babe looks during a date will be enough reason to make his thin wallet a tad poorer. Starting a small retail operation that sells a mid-level luxury cosmetic instead of a top-level luxury cosmetic, for instance, might do very well.

3. Auto Repair Services
The last thing people want to do during a recession is make a large purchase like a car. They try to keep their current cars running instead.
4. Restaurant and catering Services
Nevertheless, your decision to start an eatery must be carefully conceived and implemented. After all, just like in any other business, there are plenty of risks to consider. Many people will patronize a middle-class restaurant (even if they just need to buy and takeaway) than exorbitant luxurious eateries.
5. Selling beer, wine and liquor
During the recession, wholesalers of beer, wine and liquor enjoyed good business. Restaurants also saw a rise in sales of wine by the glass.

6. Tutoring and coaching
This is especially applicable for people who excel at teaching or instructing others, be it in academia, computer or other skills e.g. playing the piano. If you also can coach/train players in music, dancing, martial-arts, tennis, baseball, or indeed any other sport, there is money to be made by turning your skills into a business. Despite poor economic times learning, music, acting and sports always thrive.

7. Security services
When times get tough many people become desperate and frustrated. Eager to make quick cash, many people resort to various forms of crime. Burglary is especially prevalent in these circumstances. In response to the threats posed by perpetrators of the vice, homeowners and proprietors of valuable establishments, commercial or otherwise, hire the services of security firms. Of course, these services are always in demand even when the economy is thriving.
8. The sale of contraceptives
Having sex is a natural urge that must be fulfilled. Procreation is not always the agenda though. For this reason, people will always purchase contraceptives, be they couples, young adults or teenagers. As the owner of such a business an economic recession will be the least of your worries.
9. Repair services provision
Whatever the economy looks like there will always be business opportunities for repair experts whether plumbing, electrical, computer, electronics, mechanical etc.
10. Internet Related Services
Writing blog articles, forum posts, online marketing, e-wailing or e-zombism, web design, graphics design, etc.
There are lots of other recession-proof ideas. How about some suggestions from you?

Noted.