The economy affects businesses and the impact could be severe or extreme which may lead the business owners to stop operating. But they must not blame the economy that may be rooted in inflation. There are also other concerns affected by the economy such as unemployment, exchange rates, inflation, wages, and supply and demand, which typically impact how businesses make a profit and increase their efficiency. Their efforts may be put on hold while waiting for the economy to rise so that they can improve their performance, profit more, and save employees from retrenchments.
The impact of economy on businesses
- Thread starter Starmix
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the market has a tremendous influence on a business, if the market is favorable, your business will excel, if the market is unfavorable, it is less likely that the business will succeed. The market determines how the economy will be.
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- #6
If the economy sinks, the business owner may declare retrenchment and those affected can bring home a separation pay good to start a small business. They can also find anther job or prefer to work online or do business online.
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- #8
The world's economy seems sinking because of the elevated rate of inflation starting this year. people are worried. They do not know how to survive. All types of prices are affected. We need to double or time, if possible let us not sleep.LOL
Economy and government policies affect business a lot , sometimes it could be due to inflation and thus leading to rising cost in term of production and this may also lead to reduced sales if it is a product with close substitute.
Very true, if the economy is extremely bad it means your potential customers might not have enough purchasing power, then there is also the fact that you must have spent double in starting up the business. It would hard to gain back your startup capital.
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- #11
That is right, the inflaton rate gives problems to our government and its populace. it seems the inflation rate is extended this time. The prices of the commodities are hard to define, so high.
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Every business operates in a particular economy. And the conditions of that economy affects the outlook and performance of the business.
