FINANCE FOR MANAGERS

PRESENTATION ON

“BUSINESSES STARTED DURING A RECESSION”

PRESENTED BY : SYED NABEEL ALI (1536)

COURSE FACILITATOR : SIR ZAHID KHAN

INTRODUCTION

A Recession is a business cycle contraction. It is a general slowdown in economic

activity. Macroeconomic indicators such as GDP (gross domestic product),

investment spending, capacity utilization, household income, business profits, and

inflation fall, while bankruptcies and the unemployment rate rise.

You may think a recession is a terrible time to start a business, but, in reality, there

are a lot of reasons it might be a great time. Smart entrepreneurs are taking

advantage of new opportunities and unique needs presented by the economic

downturn.

What Happened During Recession??o Recessions are hard times.

o People lose their jobs.

o Companies get wound up.

o The lucky ones take the losses from their cash reserves.

o Shortage of finance.

o Incomes are reduces.

o Pay more to buy foreign goods.

o Sell products for less money

Reasons To Start A Business During Recession

1.People want to save money

2.You can hire more and better-qualified people

3.Things are cheaper

4.Lower interest rates, mean cheaper credit

5.You will have less competitors

6.Smart investors want to invest

7.You can get good PR by showing you are going against the trend

8.You've lost your job, and you have to do something.

Top Companies Started During Recession

1. Walt Disney Corporation began during the recession in 1923-24.

2. Hewlett-Packard Corporation began in 1938 during the Great Depression.

3. Microsoft Corporation began during the 1975 recession.

4. The Cable News Network (CNN) Started during 1980 recession.

5. FedEx began its operations in 1973 recession

Conclusion

Some of the biggest and most successful companies in the world were started

during a recession. From GE in the 1800s to FedEx in the 70s, these businesses are

still holding strong today. They are focused on their market offer,ambitious,

innovative and financially astute. They recognise that there are potential market

Opportunities out there and flexible in how they develop these, making best use of

Technology and other resource While many people may think starting a business

During an economic downturn is a bad idea, these corporations have proven that it

isn't always a bad thing.