Recession proof businesses

Chief executive of the National Federation of Enterprise Agencies (NFEA) George Derbyshire predicts that those exposed to the fluctuations in the property market such as estate agents may suffer during the economic downturn, whereas DIY firms might benefit as people seek to improve their existing homes.

Sales of luxury items such as restaurant meals, fashion, entertainment and holidays may reduce whereas companies providing staples such as groceries will not experience the same kind of downturn, Derbyshire said.

Some businesses will benefit from the crunch, Derbyshire predicts. “If, for example, people can’t afford a new car, then they might turn to the second-hand market,” he says.

Marc Barber

Marc Barber

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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