The Negative Effects of Inflation on Entrepreneurs

[Suba]

Inflation is an economic condition in a country where the prices of goods tend to rise significantly or depending on the inflation rate during a certain period, so the value of money in circulation will decrease, because the amount of money in circulation exceeds needs. If mild inflation can often have a positive influence on business, but large inflation often has a negative impact, so in your opinion, what are the negative impacts of inflation?

 

[Starmix]

Inflation spares no one in entrepreneurship. One faces the worse scenario of conflicting and skyrocketing prices of commodities thus unable the business to step to next level. There might be massive retrenchment if inflation cannot be solved.

 

[Fidelia]

Inflation affects entrepreneurs in so many negative ways. The ability to source raw materials and productive input is diminished. Purchasing power of our customers is reduced making them to reduce patronage. Government of all countries should work to always ensure that inflation is always minimized.

 

[aninditasen]

Inflation is an economic condition in a country where the prices of goods tend to rise significantly or depending on the inflation rate during a certain period, so the value of money in circulation will decrease, because the amount of money in circulation exceeds needs. If mild inflation can often have a positive influence on business, but large inflation often has a negative impact, so in your opinion, what are the negative impacts of inflation?

Business entrepreneurs lose business when there is inflation as the number of buyers decrease.

 

[Suba]

Business entrepreneurs lose business when there is inflation as the number of buyers decrease.

That's right, the number of buyers decreases, because goods prices rise, and people's purchasing power decreases, and the higher the inflation rate, the more it will disrupt company performance and many companies will close.

 

[King Belieal]

I have been practically hit negatively by the inflationary trend. I run a poultry business and my cost of production has increased. I had to reduce capacity to keep up. That means reduction of revenue and profits.

 

[Suba]

I also had experience when I opened a grocery store, because I didn't anticipate that inflation would occur, the merchandise sold out so I couldn't buy merchandise inventory because the price of goods rose.

 

[kerryjoy]

In my opinion, it might be good but mostly it's bad because it beings most of the loses and increases the costs of living especially the less fortune

 

[Starmix]

The extended rate of inflation could harm the entrepreneur's business badly. The prices will be nonetheless attractive and appealing. They will feel frustrated.

 

[eLdavis]

I have been practically hit negatively by the inflationary trend. I run a poultry business and my cost of production has increased. I had to reduce capacity to keep up. That means reduction of revenue and profits.

I can imagine, I heard from someone that even the price of feeds used by does who are into poultry and fish farming has increased a lot as well.

 

[freelancermaria]

Entrepreneurs often find themselves struggling due to inflation. The rising prices of resources make it difficult for them to afford the necessary supplies to run their businesses. Furthermore, inflation can also lead to a decrease in the number of customers, which can have a significant impact on their revenue.

 

[Augusta]

Inflation affects entrepreneur n several ways. The returns of selling will be affected, it diminishes profit . The purchasing power of the investors will decline

 

[King Belieal]

All the dreams that I had of expanding the business has been put on hold. That's because cost of production has more than doubled. My business is just at one spot for a long time because of inflation.

 

[Xtynehappy]

Inflation is the very bad poison for the economy for the affected country in the truth of the matter.

 

[Starmix]

Indeed, inflation destroys the plans of the entrepreneurs to advance there careers to reach their dreamed goals. Inflation devastates their calculated targets.

 

[Trush Jodie]

Inflation makes it very difficult for business people to produce on one hand and also difficult to sell on the other hand.

 

[Xtynehappy]

In most cases higher inflation rises the prices of products making the business purchasing power for the business to go down. This affects the business progress adversely.

 

[Min George]

Inflation leads to shrinkflation which always causes a backlash from the customers of the business and sometimes reduced patronage.

 

[Springtime]

Inflation can have a significant impact on business. Inflation leads to higher cost of raw materials, production and labor. When you adjust price for the products, consumers may buy less, thus affecting the sales and profitability.

 

[Augusta]

it makes the cash in bsnk lose value. You might not buy the quantity of products you would have bought with the same money without inflation