Entrepreneurship opportunities in an economic recession
Sir: Business development experts frequently describe economic recession as the period with the best opportunity for expansion of investment and entrepreneurial activities.
Economic recession is a period of general economic decline and is typically accompanied by a drop in the stock market with an increase in unemployment and diminution in housing market. Generally, recession is less severe than a depression. The blame for recession usually falls on the shoulders of Federal leadership, comprising the President himself, Head of the Federal Reserve or the entire administration. Then, the question as to what cause recession arises.The main factors responsible for economic recession have been identified as: high interest rates which limit liquidity or the amount of money available for investment; the general increase and rise in prices of goods and services over a period of time, thereby decrease in purchase of goods and services; the decline in gross domestic product (GDP); among others.
In Nigeria, the recent economic recession has been compounded by the decline in the world market price of the crude oil on which the country depends heavily. Also, the depreciation of the value of Nigeria’s currency (Naira) to the dollar has also been identified as being partly responsible for the cause of the havoc on the economy.
In every ambiance of economic recession, battles for purchases decrease while levels of auction and cheap labour increase. This highlights opportunity for every investor, entrepreneur and small-scale businesses to come up and harness the opportunities the economic recession offers. The opportunities in such a period are limitless.
The labour market becomes intense during recession. This translates to ability to employ talented and highly qualified individuals at a cheaper price. Weak economic growth means ailing businesses are selling off their assets and this opens a market and opportunity for investor or start up entrepreneur to purchase assets at cheaper prices. During recession, the production of goods and services demand innovations that will battle with the existing powers. This is an opportunity to manoeuvre new products into the market.
Thus, the identified problems caused by recession are not always about hardship, but also an opportunity for keen investors and entrepreneur to invest and boost the economy of the country.
Zara Muhammad Ngubdo,Maiduguri, Borno State
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