Managing Small Businesses During Recession

P A L N S Kalyani

doi:10.21844/smsjei.v6i02.18702

P A L N S Kalyani St. Mary's Centenary Degree College, Secunderabad

DOI: https://doi.org/10.21844/smsjei.v6i02.18702

Keywords: Guerrilla marketing techniques, discretionary spending, business networking,

Abstract

A recession is narrowing of an economic cycle and it is referred as slowdown of economic action. The macro economic factors
varies during recessions. There will be a fall in production, employment, GDP, investment, capacity utilization, spending,
household income, inflation and business fall. The rate of unemployment and bankruptcies rise during recession. Due to adverse
supply shock there will be a drop in consumption and there will be a bursting of economic buddle. Even though owing business
organizations is not without struggles, the rewards they earn often worth it. Every entrepreneur enjoy great freedom and
flexibility in comparison with a regular employee. With a right kind of state of mind and proper understanding of hardship with are
to be faced, a proper plan is required to tackle the ups and down in the journey of Entrepreneurship with respect of Small Scale
sector. One of the biggest challenges faced by small firms is its difficulty to reach break even. It often takes 2 to 3 years for small
businesses to accomplish their goals. Especially during recession, small business organizations often hit the hardest. Reduced
spending power, inadequate preparedness for recession, budget constraints etc., are making it impossible for small business to
endure. The present article offers various suggestions for small businesses to manage during recession.