When the Great Depression hit Latvia in 1932, Nathan's parents told him they could no longer afford to feed him. So at the age of 17 he had to find work so he could feed himself. Even though he had been studying electro-mechanical engineering at Riga University, there were no opportunities for work anywhere. He even offered to work 10 hours for a meal and still no one would hire him. One day while walking home, he saw in a furniture shop window cabinet knobs from Germany for sale for 12 Lats each (about $2.40), which was the equivalent of buying food for about two weeks. As he walked away he had a debate with himself, which he refers to as the "3 Nathans" - the Strong Nathan, the Weak Nathan, and the Middle Nathan who has to decide which Nathan to listen to. The Strong Nathan thought he was talented enough to go into cabinet knob manufacturing. The Weak Nathan didn't think it was possible since he didn't have any raw materials or manufacturing equipment. However, the Strong Nathan was convinced he could get scrap material from the galalith (a synthetic plastic made from casein and formaldehyde) manufacturer and use a friend's shop equipment when they were not using it. The Middle Nathan thought it was worth a try to see if he could make and sell cabinet knobs to survive. Nathan did get free scraps of the plastic material and made arrangements to use a friend's shop at night. After working day and night for three days, Nathan had made 120 cabinet door knobs, which he packaged in old shoe boxes. To his surprise, the shopkeeper offered him 2 Lats for each cabinet knob. The 240 Lats he received from his cabinet knobs was enough for Nathan to live well for a year and start his own furniture hardware manufacturing business.
Nathan was a young entrepreneur and successfully built up his furniture hardware manufacturing factory, selling his own design of cabinet knobs for 40 Lats each. At the time, Nathan was also engaged to get married so life for Nathan was very good. Following the non-aggression pact between Nazi Germany and the Soviet Union (Molotov-Ribbentrop Pact) in 1940, the Soviets annexed Latvia and nationalized all Latvian businesses. The Russians considered business and factory owners "exploiters" and would send them and their families to Siberia. When they came to Nathan's factory he had to wait outside while the Russians met with his 60 factory workers. When the Russians came out of the meeting, they informed Nathan that since his workers considered him a good boss he could stay on as the manager of his factory. This situation came to an end when the Nazis invaded Latvia in 1941.