How does economic recession disturbs business existence.

[TOZZIBLINKZ]

During times of economic recession, private individuals definitely suffers the repercussion and also businesses suffers the repercussions caused by economic recession. According to a more practical description and definition, economic recession refers to a time in which a particular economy encounters or incurs a total diminishing in worldwide productivity thereby causing cost of living to increase among private individuals and also cost of production to increase among established businesses in the particular economy . Economic recession definitely is nothing to be happy about because it can totally affect the worldwide productivity of a particular country . Nigeria to be precise has faced economic recession and that was back in the year 2015 and up to date we are still facing a glimpse of recession . Most of the times when a business economic encounters recession it is totally almost impossible for the economy to recover and that is basically what is happening in Nigeria.

Due to the economic recession that happened in Nigeria many businesses suffer negative repercussions as a result of increased cost of production of goods and services available for the satisfaction of mankind needs and wants. Many business organisations and establishment during recession times tends to shut down, and many other businesses who still strive to maintain expected amount of productivity are presently in the brim of liquidation and bankruptcy.

 

[CALVINDOL]

During times of economic recession business productivity rend to be low and also cost of production tends to be very high. Economic recession is absolutely very negative to the existence of businesses that is why if possibly a business should absolutely relocate to another country or possibly to another area then the business should definitely do so in order to protect the business knowledge and its ability to be profitable. Economic recession put a business in the frontier of facing negative repercussions due to the economic diminishing of resources capable and able of easily helping the production of goods and services capable and suitable for the satisfaction of the needs and wants of the many majority of the public .

Some of the ways majority of businesses have been able to survive economic recession is by cutting down the amount of financial expenditure the carryout in their business and channel all available revenue or resources to the production of goods and services more likely to be bought by consumers and clients.