Who does a recession hurt the most?
A recession hurts entrepreneurs the most because they are the ones who take on the most risk. During a recession, customers are less likely to spend money, so businesses must reduce their prices to stay competitive. This can be difficult for new businesses that don’t have a lot of capital and have to slash their prices to attract customers. As a result, many entrepreneurs end up going out of business.
Additionally, it’s difficult for startups to get funding from venture capitalists during a recession because they are less likely to invest in risky ventures. This can be challenging for young companies that need money to grow. So overall, entrepreneurs tend to fare the worst during a recession.
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