Is It Recession Or Correction?

People across the world are making hue and cry about recession. There are talks about job cuts, cost cutting, no fresh employment opportunities, economic slowdown, global meltdown etc., Is it a cause for concern? Or is it an exaggerated one? Or is it a mere correction? Or is it an opportunity? Let us find out.

In economics, the term recession generally describes the reduction of a country's gross domestic product (GDP) for at least two quarters. The usual dictionary definition is "a period of reduced economic activity", a business cycle contraction (Wikipedia).

It is a fact that every rise has a fall and every fall has a rise. Whenever an economy gets heated it requires correction. It is essential once in a while to shed the excess flab. When individuals put on weight they need to hit gym to stay slim and trim. So is the case with organizations also. During recession, employers make the mistake of firing their employees which is a retrograde step. On the other hand, employers should take the support of their staff to find out the ways and means to bring down the unnecessary expenses.

A few companies have started their entrepreneurial journey during the time of recession and have left a mark in the business world. It is basically because they looked for opportunities during recession. They have the business acumen and had the uncanny ability to convert threats into opportunities.

Although there is nothing like good time or bad time to start off a venture, recession provides ample opportunities to start new enterprises. When people are scared, it is the right time to enter as there will be least competition. Besides, the difficult periods will be there for short time only. Once the so-called recession is completed then there will be greater opportunities to explore and expand the enterprises further and farther.

There are several benefits with recession. It helps in checking the reckless attitude, makes the entrepreneurs think more realistically. Besides, it helps the entrepreneurs to think ‘out of the box’. It opens new challenges and opportunities. As every problem leads to prospect, the recession leads to innovation. An optimist always looks at the opportunities from threats while a pessimist always searches for threats from opportunities. It all depends on the mindset of the people in viewing the scenario.

As per the available newspaper reports, it unfolds that Indian youth are caught up with entrepreneurial bug and are willing to try entrepreneurship as a career. It is indeed a positive sign. Youth can identify the triggers for new ventures; look for feasibility and availability of all resources. They should take the right mentors who bring in their rich practical experience and fine-tune the projects and processes and ensure that the projects take off successfully.

To conclude, recession is a boon not a bane. It distinguishes men from boys. It helps the real players to survive and weed out the fake players. Tough times will not last but tough entrepreneurs will last.

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