Recession or Natural Selection?

Recession is not necessarily a dirty word. In fact, there is actually an upside in recession - you just have to look for it. For consumers, the upside is that businesses which offer poor service, have higher prices or incapable management tend to fade into obscurity.

The natural selection enforced by recession forces these businesses to fold and remaining are healthy businesses which should allow the economy to prosper when the tide turns.

There has been much debate around the bail out of the motor manufacturers. Based on the analogy above, I would liken the bail out to messing with the natural order of things. Yes, many jobs are at risk but long term you really are not doing the global economy a favour. Other motor manufacturers who run more efficient companies should have benefited by a massive boost in market share, they deserved it and it has been denied them.

If you run your own small to medium size business, bail outs are not your concern but the lesson is still there. Aim to be more efficient, offer better service and you could find yourself gaining market share and even being a more profitable enterprise. This does not always mean spending less, it really means spending wisely.