Home > Uncategorized > Recession and one of its impacts

Recession and one of its impacts

I just returned from a trip to India.

Was talking to a former colleague who is just leaving his job.

And not having a job in hand, in this environment, did not dampen him one bit.

He had lined up a plan to start a business in a related line. Two friends of his, who work in agencies, were planning to quit their jobs and join him.

And he had lined up some clients as well.

In a completely unrelated line another friend of mine in anticipation of being let go, has quit his job and is starting a consultancy in a related line.

In the former case his business puts him in competition with his current company. Whereas in the latter’s case it is a related but non competing line.

So the irony is that recessions is when business is tough. Big companies hunker down. Cut costs, usually by asking people to leave.

And in this same environment, dozens of entrepreneurships take shape. Capturing little bites from big companies in terms of business and talent. Not to mention at lower prices.

When service businesses calculate the cost savings by letting people go, they need to factor in the added cost of potential loss of business to the people they let go, and if the business is really small pressure on them to cut the cost of services.  In a manner prolonging the recession.

And that is not a pretty picture at all.

Harish

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Categories: Uncategorized Tags: ,
  1. Jayshree
    May 4, 2009 at 10:55 am

    Good one!
    Incidentally there is an interesting website that is specifically dedicated to recession victims.It offers help and discusses all issues related to recession-www.angstcorner.com. It’s worth a visit!

  1. May 3, 2009 at 11:37 am

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