How does the state of the economy affect businesses?

Other economic changes that affect business include changes in the interest rate, wage rates, and the rate of inflation (i.e. general level of increase in prices). Businesses will be more encouraged to expand and take risks when economic conditions are right, e.g. low interest rates and rising demand. read more

Economic conditions impact all businesses, though small businesses often feel the effect of economic changes faster than their larger counterparts. Upswings in the economy typically provide a rush of new or expanded business opportunities for small operations, whereas a downward economic cycle can have a severe and lasting impact. read more

Economic factors that commonly affect businesses include consumer confidence, employment, interest rates and inflation. Consumer Confidence Consumer confidence is an economic indicator that measures overall consumer optimism about the state of the economy. read more