Business and or the economy - Essay Example

Article Review The article “The Economys Effects on Small Businesses” is written by Lisa McQuerrey. In this article, (Lisa, says that vulnerability of small businesses is more compared to large businesses to experience changes because of a changing economy. In a strong economy, small businesses need to hire more resources in order to keep pace with the demand. However, the very businesses find themselves overextended when the economy starts to decline. In a slowing economy, small businesses face the challenge of reduced revenues because of reduced consumer confidence and decreased amount of disposable money.

In addition, small businesses face the need to downsize. However, the impact of a slowing economy on a small business depends upon the type of small business. In a slowing economy, small businesses involved in vehicle and property repossessions thrive. Likewise, small business owners with a strong financial base find the slowing economy as the right time to buy out their competitors. Small businesses show better adjustment and adaptation to a changing economy. This can primarily be attributed to the fact that decision making is easier and faster in small businesses as compared to the decision making in large businesses.

Hence, small businesses can easily make the required changes as per the need of the hour. This is a very informative article about the effects of economy on businesses in general and on small businesses in particular. It not only explains the risks of changing economy on small businesses, but also touches upon ways in which those risks can be turned into opportunities. References:McQuerrey, L. (2013). The Economys Effects on Small Businesses. Retrieved from http://smallbusiness.chron.com/economys-effects-small-businesses-10269.html.