Big or small businesses: which suffer most during economic crises?

[Bookwormlux]

Economic crisis are usually a very bad situation for businesses in general and this is usually when it has gone so bad at a country has even get to a recession period . This is why people tend to be afraid of going into businesses because they are afraid of the unknown and the uncertainties that may present in the futures , most especially those who do not really understand the role in which risk-taking and appropriate planning play in being able to successfully run a business .

On this particular topic , I want us to take some time and discuss which business usually suffer the most whenever there is an economic crisis affecting the country as a whole .

Could it be that big businesses suffer the most losses or the small businesses are the ones that usually suffer the most ?

On a personal note , I want to say that it is usually the small businesses that suffered the most .
This is usually due to the fact that most of them are still struggling and have not been able to find their foundation in the business sphere yet . And so any small economic crisis will definitely make them to crumble much more than big businesses .

What do you think?

 

[Jasz]

Recent economic trends have made a lot of business owners nervous. But what your business should really be concerned about is size—not whether the economy goes up or down. Recent research suggests that it isn't the overall economic climate that affects business growth, but rather the size of the business itself.

The economy may not affect profits as much as you think. The results of a recent study reveal that businesses are actually more affected by their size than by the overall health of the economy. The study looked at data from over 400 countries across nearly 100 years and found that it's not only small businesses that suffer during an economic downturn; large businesses are also impacted in a big way when economic conditions worsen.

In fact, small businesses actually seem to benefit from good economic times. While large businesses grow slower during periods of prosperity, small businesses actually see an increase in revenue when things are going well for the economy as a whole.

It may seem counterintuitive, but the data shows that there's no such thing as an "economic crisis" for small businesses. Instead, these businesses are more likely to thrive in tough times than they would during prosperous ones.

 

[Setho]

I will like to understand that every business no matter the size is going to suffer very badly if the economic fortunes of a country is going to turn aside . I believe that the difference is going to come in such a way that there are some businesses that are going to be affected to a very great length while there are some that the effect is just going to be minor on them.

I believe that smaller businesses are going to be much more affected by an economic turn around because big businesses usually have the big brains and people that can be able to help them manage risk at this point in time . The smaller businesses on the other hand is mostly composed of people who are inexperienced and will not have so many workers and as such they are not so much aware about the economy how it or how they can manage money.

One of the reasons why big businesses are usually not affected is because the employee lot of people and as such government are always going to give them the support that they need . This is going to be in terms of relief fund or Grant .

 

[Kendy]

When it comes to economic crisis, both small or large scale businesses are adversely affected equally. When there is economy inflation just like how presently there is hike of fuel price in my country. The fuel price regulates the price of every other commodity, this is because the cost of transportation would be added. If the fuel price is higher, the commodity would be higher and vice versa. During the covid-19 pandemic, the prices of goods were on the high side. The prices of goods were four times the original price and I am not exaggerating. Things were so difficult and there was no inflow of money because those who worked in private sectors were either sacked, salary slashed or non-payment of salaries. This made the economy very unfriendly and in this case, both small and large scale businesses were affected. If I am to choose, I would say that large scale businesses are affected more during an economy crisis and this is because for instance, a small business owner can always market his goods or take them to where the target audience could be accessed but large scale businesses do not have this leverage and this is why at some point, they offer discounts by engaging in clearance sales.

 

[Kingsley]

During an economic crisis or downturn both the macro and micro economic aspect of an economy will most certainly feel the impact of thr crunch. But most time thr macro economic aspect always get some sought of shocks since this where the government usually concentrate their efforts and they will do all it takes to revitalise it. As compared to the micro level which takes most of the hits.



It is naturally so because those operating under the micro economics are the small and medium scales enterprises and they really do not have anywhere to fall back to and they hardly get bailout funds directly from the government rather they depend on what they can get from microfinance banks which will end up making them more indebted. In fact when we consider it carefully those financial houses are still under the control of the micro economics because they can also be categorised under the large scale enterprises. So one way or another they still control the activities of the small business in the face of a crisis. The small business takes all the hits. But the big businesses gets all the support that is available from the government as it is been generally owned by government officials.

 

[Chibson]

Both small businesses and big businesses are usually affected during economic crisis in a particular country or the world generally like the coronavirus pandemic.
A lot of businesses were affected, both small businesses and big businesses lots a lot of money. One thing that matter is not really the size of your business but the level of intelligence the business owner has to put things in place when such economic situation arises.

The truth is that there are a lot of businesses that made the whole lot of profit during the Corona virus pandemic and there are also some businesses that made losses.

As far as I am concerned, people like Elon musk made their highest profit during the Corona virus pandemic and this really got a lot of people thinking if the coronavirus pandemic was a setup by the billionaires in the world to make a lot of money. This is not so because they have proper knowledge of how to manage situations and take advantage of every situation to the benefit of their businesses.

Sometimes, what matters is the kind of individuals you employ and the kind of strategies you put in place to combat every situation that arises.

 

[Rachael]

I think large scale businesses suffer most during economic crisis, because at least, small businesses can always improvise and in small businesses, just one individual can always bear the risks or challenges and in terms of employees, in small line of business, the business owner can likely operate on a sole proprietorship successfully but the case is different when it comes to large scale businesses. During the pandemic, small scale businesses were still able to operate despite the lockdown order and it was not noticeable but large scale businesses were on total shutdown and could not operate.

Even in terms of employees, despite the economic crisis, large scale business owners would still have to pay their workers their weekly or monthly salary packages. Well, both small and large scale businesses are always adversely affected when there is inflation but small business owners can actually salvage the risks because their businesses gives them the leverage. Also, in my country, most noticeably, during economic inflation or crisis, the government usually give grants and empowerments to small scale business enterprise and even loans with no interest attached but it is not really common for such opportunity when it comes to large scale businesses

 

[Mataracy]

You are right ; large business suffer most but on one condition.. If the owner of the large business has been dealings or producing different goods or services then it may not suffer much and will be able to survive the economic crisis.
Likewise if the owner of the small business did not know how to strategize and switch to another business or started selling something else then ; there may be serious problem.