The entire economy is feeling the bad effects of the slow economy but small businesses and new ventures are suffering more comparatively. The economic downturn has affected every small business badly in any industry and new ventures are a far cry for now at least. The manufacturing companies have had to lay off at least 442,000 jobs and only 4% is the percentage for hiring new employees in the industry. This is an alarming rate of growing unemployment.
The GDP is going down and the house industry which used to be the most substantial component of the GDP is now only 10% of the GDP which is a horrific situation. The retail and restaurant industry has been declining at alarming rates lately since the retail industry has laid off 250,000 jobs recently and that is two thirds of the component lost out of the total GDP. Inflation has been soaring and many analysts believe inflation is the culprit to the bad situation overall. The business situation is bad and extremely pessimistic since there is no chance of improvements at a sooner date. Thus the situation seems bad overall. Thus this factor has been placed at 3 which means it’s the third most important factor (National Federation of Independent Business, 2008).
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