Businesses, Like Everything Else in This World,

Businesses, like everything else in this world, is affected by the way the economy turns. During good economic trends, businesses seem to boom, and every one seems happy and satisfied with their circumstances. On the other hand, once the economy goes south, some businesses start to head south as well. Financial burden starts to overtake what once held peace (Justiniano & Preston, 2006). But not all companies will suffer during a recession, and not all companies' business will boom during good economic times.

When one thinks of a bad economic era, one thinks of businesses closing down, of people losing their jobs, and finances being out of control. Once the economy goes down, people feel insecure about everything around them. They hold on tighter to what they have and fear losing everything; it's as if they enter a state of shock when financial insecurity comes forth. And it is this train of thought and action that affect the businesses around them (Gohmann, 2008).

Consumers stop buying like they used to and so businesses, whether local or national, all take a hit. Small businesses that used to make their money from the local shoppers, now have to close down because there simply are not any people buying from them. They are not like the big businesses and franchises that order in huge amounts of bulk.

They order just enough to meet their local demand, and if that local demand is no longer present, then they are forced to close down because of the downward economy (Acs et al., 2008). On the other hand, there are those businesses that actually boom with a falling economy. Companies such as Family Dollar and Wal-Mart actually gain business when everyone else loses it.

Consumers no longer have the luxury of buying retail; they look for a bargain, and stores such as Wal-Mart and the main franchised Dollar Stores actually see a rise in their profit levels (Acs et al., 2008). Consumers still want to buy, they need to buy. People still have their needs, so they save whatever extraneous money they have, and buy things either on sale, or at discounted rates with more frequency.

Another business that also booms during a bad economy are fashion stores that offer clothes, shoes, and socks at more than half the retail price. It is because the economy is bad that people often look at alternatives to buy clothing. Stores that might have been labeled as having clothes that are no longer in style or as fashionable, now have people shopping there because they cannot afford to pay retail value for their necessities (Gohmann, 2008).

In turn, these stores such as Marshalls and TJMaxx are having more money come in which allows them to expand what.