The positive side of recession 

Let me start with a ‘sorry’ to you. Why? Well, though the next few lines will talk about recession, they will take you little away from the actual stuff on the subject. By the way, I have an advance apology in the form of my blog title J

Those who have already found themselves engrossed in a book titled ‘Freakonomics’ would know the author’s freak way of reasoning various historical incidences, events and situations. Here is my little attempt to explain where else does the ‘Recession’ get reflected other than stock market, GDP predictions of the countries, unemployment rate, etc., which may or may not have caught your eyes. You are free to add to the list by commenting on this blog...

1) Ever wondered why all of a sudden you find more number of ads on the front page of leading newspapers? And that too of not so big brands. Two simple reasons – a) newspapers are losing their ad revenues as companies have axed their promotion budgets drastically, forcing the newspapers to offer their sexiest place (read front page) for ads quite often. They used to offer the same space selectively. And b) as big brands have already cut down their promo expenses they are not going for print promos in a big way, even if it be the discounted front page. This has resulted in more number of not-so-big brands going on the front page at nicely discounted rates. The bigger the size of an organization the larger the impact of global recession on it due to its stakes in more than a single country/sector. Hence, any big organization is saving every single penny to shun away any potential recession-hitch lurking in near future. Whereas, small companies may find it a right time to get blurb at a newly discounted rates. Not a bad idea. This would surely pay them off in the long run when the situation improves; though, at present also, with their already low prices, the small companies may wipe away customers of big players who charge a great moolah for their products or services.

2) I think the current economic recession should lead to more risk taking capability in entrepreneurs in India. Quite freaky? Hum, not really. With the saturating Indian job market (some argue it is only cosmetic) the freshers are forced to look up to either continuing education or starting their own venture. The second option is what people prefer if they have completed Management or higher education though a major section may still want to continue their search for a job. But the lack of job opportunities surely creates more number of entrepreneurs than when the jobs are easily available. Since people anyways have to start on their own, they do exhibit their not-so-far-found ability – risk taking. Once in their own business, these newly found entrepreneurs stake everything to make their business successful. And when the market situation improves these positively forced entrepreneurs would find themselves in a very comfortable position as they would have already seen the worst by then. This positive side of poor job market must be appreciated. By the way, do you see some link between the 1st and the 2nd point? Yes, you got it right. If not, then ask me and I will love to explain.