Post Image

Humans naturally detest uncertainty. The fear of not knowing is one thing that makes economic downturns so problematic. We are not certain about how bad things might get, how much our businesses will be affected, or what outcomes to expect.

A few platforms rise above the raging waters of general financial turmoil. These tend to be enterprises which offer goods and services that people will always need, regardless of what state the economy is in. They are resilient; searching eyes tend to turn in their direction when there is a hunt for stable businesses to invest in.

  1. Baby Products: Because babies will always be born, baby products are purchased, even when households are cash-strapped. Baby products such as milk, oils, powders and diapers have a stable market, maintained by demand from parents who seek to ensure that their little ones get the right kind of care.
  2. Healthcare Provision: Medical centres and pharmacies thrive on the sad fact that people get sick all the time. They help people get better at a cost. Except for those who do not place any real value on their lives, a leaner pocket will not deter from attending to health concerns by visiting any of these centres or accessing their services.
  3. Auto Maintenance and Other Repair Services: The auto repair business booms when there are vehicles to be fixed. There is no known correlation between recessions and a reduction in the rate at which vehicles act up or fall into disrepair, so this one is almost always a safe bet. Similarly, leaky rooves, damaged gates and significant home wiring faults have to be fixed if minimum levels of comfort are to be maintained.
  4. Hair Dressing: Recessions do not necessarily equal unkempt hair or scraggy beards. We still do what we can to look good in the hardest of times. If we cannot have the expensive adornments, we at least want to have cheaper haircuts or use less expensive hair extensions.
  5. Education: Parents in general want the best possible education they can afford for their children. Education services are therefore demanded whether or not the economy is riding on a crest or languishing in a trough. Schools and tutorial services do not as a rule go down under because parents no longer have the money to pay for their children, although there may be a trend towards choosing less expensive education.
  6. Freelance Services: This is true for tech-related jobs and media firms. A credit squeeze causes companies to consider cost effective ways of carrying out their activities, and this often leads them to hire freelancers to do jobs which full time staff would normally do.

You might also like:
This article was first published on 14th June 2016

ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.


Comments (2)

2 thoughts on “6 Businesses That Thrive During Economic Downturns”


  • Hello Ikenna, I appreciate your nice write up but I kinda disagree with some of the items that made it on your list. You didn’t include service providing businesses like dry cleaning, restaurants and grocery stores. And baby products? What does that even mean? Singling it out instead of generally identifying that not only babies have needs is not, in my opinion, necessary.


  • Hello, Francis!
    Thanks for responding to the article. Its nice to know you found it interesting.
    You made a valid point about certain businesses not being included in the list. It wasn’t meant to be a comprehensive list, so some options were left out.
    However, the point about the baby products referred to in the article is that they meet basic needs. While it is true that everyone has needs, businesses which provide basic services tend to do better than other types in times of financial difficulty. Basic baby comfort is, in my opinion, basic enough for a mention in an article like this one.
    Thanks again, for your comment.

Leave a Reply

Your email address will not be published. Required fields are marked *