Economic downturn hits start-ups in multiple ways
Dec 9th, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Deutsche Bank Research says young and innovative companies are being hit especially hard by the current recession and financial crisis. In an economic downturn, spending is restricted to a minimum, companies avoid risky, long-term investment projects – e.g. the introduction of new technologies – and consumers are less willing to experiment with new products. This makes it increasingly difficult for start-ups to sell their new and innovative products.