A business recession is a business activity decline lasting for at least six months. It can be measured by a decrease in the gross domestic product (GDP) or total output and typically occurs when there is a decrease in consumer and investment spending.
A business recession can also be caused by increased imports, leading to decreased demand for domestic goods and services.
A recession can also be caused by a natural disaster, such as a hurricane or earthquake, which can disrupt supply chains and lead to a decline in production.
A business recession can have serious consequences, including job losses, increased poverty, and lower incomes.
However, recessions also present opportunities, such as investing in new businesses or technologies at lower prices.
Here are we listed 50 businesses that do well in a recession:
1. Big Oil
The oil industry is known for its ability to weather economic downturns, especially when it comes to big companies like ExxonMobil and Chevron. When it comes to businesses that do well in a recession, Big Oil is always at the top of the list. There are a few key reasons why Big Oil does so well in a recession.
Firstly, oil is an essential commodity – people will still need to drive their cars and heat their homes even when the economy is struggling. It means that demand for oil remains relatively high even during tough times.
Secondly, Big Oil companies are some of the world’s most efficient and well-run businesses. They have strong balance sheets and capital access, enabling them to keep operating even when other companies are struggling.
Lastly, the oil industry often benefits from lower prices during a recession.
2. Utilities Power
Businesses that provide essential services in a recession often weather the storm the best. People still need to heat their homes, cook food, and keep the lights on, even when times are tough.
Utility providers such as power companies are generally quite resilient during an economic downturn. People may cut back on other discretionary expenses but usually continue to pay their utility bills. This means utility companies can maintain a steady revenue stream, even when other businesses are struggling.
Of course, not all utility companies are equally well-positioned to weather a recession. Those with large debt may find it challenging to make interest payments. In contrast, those who have invested heavily in renewable energy may be disadvantaged if energy demand falls.
3. Food Retailers
In a recession, people are looking to save money wherever they can. One place they cut back on spending is eating out at restaurants. This presents an opportunity for food retailers who can offer affordable alternatives to dining out.
Businesses that do well in a recession can provide value to consumers while maintaining profitability.
Food retailers that provide low-cost options are typically the ones that do well during a recession. This is because people want to save money and cut back on spending. Discount supermarkets and dollar stores are usually the winners in a recessionary environment.
Another type of business that does well in a recession is providing necessary items such as food and health care products. People may not be able to afford luxury items, but they still need to buy essentials.
4. Gas Stations
In a recession, people are looking to save money wherever they can. One place they cut back on spending is by driving less.
However, businesses that do well in a recession can adapt to this change in consumer behavior. One gas station chain that has done well in past recessions is Shell.
They have weathered the storm by cutting costs and passing the savings on to consumers. This has allowed them to maintain their market share and even grow during tough economic times.
Other businesses that do well in a recession provide necessary goods and services at a lower price than their competitors. For example, discount retailers like Walmart and Target tend to see an increase in sales during a recession.
5. Phone Companies
When the economy worsens, certain businesses weather the storm better than others. Phone companies are one such business that does quite well during a recession. There are a few reasons for this.
Firstly, people tend to cut back on discretionary spending during tough economic times. This means they are less likely to buy expensive new phones or sign up for extras like cable TV.
However, they still need to communicate with friends and family, so they continue to use their phone service.
Secondly, people are more likely to default on other types of debt during a recession, but they typically keep up with their phone bills. This is because most people consider cell phone service a necessity, and they will make sure to pay that bill even if they miss a few credit card payments.
6. Insurance
Insurance is one of the key industries when it comes to businesses that do well in a recession. This is because people will always need insurance, no matter the state of the economy.
And while people may cut back on other expenses during a recession, insurance is usually seen as necessary.
There are a few reasons why insurance does well in a recession. First, as mentioned above, people still need it even in tough times.
Second, people may be more likely to get insurance during a recession. This is because they want to protect themselves financially if they lose their job or have other economic troubles.
So if you’re looking for a business that can weather a recession, insurance is worth considering. It’s an essential service that people will always need, regardless of the economy.
7. Health Care
Businesses that provide essential services or products in a recession do well. This is because people still need these things even when times are tough. Health care is one of those essential businesses.
Even when people cut back on other expenses, they still need to see their doctor and get medication. In addition, health care is often less expensive than other discretionary items like vacations or new clothes.
And, during a recession, people are looking for ways to save money. So they may be more likely to go to the doctor when sick instead of trying to tough it out.
Finally, baby boomers are aging and will need more health care services as they age. This increased demand will help offset any decrease in demand due to the recession. So if you’re looking for a business that will do well in a recession, health care is a good option.
8. Restaurant
In a recession, people are looking to save money in any way possible. One area where people continue to spend is on food. Many businesses do well in a recession because people still need to eat.
Restaurants that offer affordable prices and good value will continue to see customers during tough economic times. Businesses that offer delivery or takeout options will also do well in a recession.
People look for convenience and don’t want to spend money on dining out often. However, they still want to enjoy a good meal from time to time.
Restaurants that can provide this will succeed. Finally, those businesses that focus on providing an experience rather than just food will also do well. People may not be able to afford a vacation, but they can still enjoy a night out at a nice restaurant.
9. Homebuilding
In a recession, many businesses suffer. But some businesses do well in a recession. Homebuilding is one of those businesses. There are a few reasons why homebuilding does well in a recession.
First, people still need a place to live. Even when the economy is struggling, people still need shelter. So, demand for homes doesn’t go down in a recession.
Another reason homebuilding does well in a downturn is because interest rates usually go down. So, even though people may have less money to spend, they can still afford to buy a house when interest rates are low.
Finally, recessions often create opportunities for bargain-hunting buyers.
10. Car Rental
When the economy worsens, some businesses suffer while others thrive. Car rental companies are one of the latter; they often do better in a recession than in good economic times.
There are several reasons for this. First, people are more likely to vacation at home when times are tough, and gas prices are high. That means they’re more likely to rent cars for road trips instead of flying.
Second, business travel tends to go down in a recession. That’s bad news for airlines, but good news for car rental firms since business travelers are typically their best customers.
Finally, many people lose their jobs in a recession and have to get by with just one car per family. That means more demand for short-term car rentals, whether commuting to work or running errands.
11. Movie Theaters
Though many businesses suffer an economic recession, movie theatres do pretty well. People may be more inclined to go to the movies as a form of low-cost entertainment when they are cutting back on other expenses.
Additionally, people who have lost their jobs may have more free time to go to matinees or evening showings.
Finally, going to the movies is often seen as a fun activity that can help people forget about their troubles for a couple of hours. Consequently, movie theatres tend to do well during tough economic times.
12. Broadcasters
Businesses that can keep their customers informed and entertained in a recession are more likely to do well. This is why broadcasters are often some of the businesses that thrive during tough economic times.
Even when people cut back on spending, they still need to be informed and entertained. This is where broadcasters come in. By providing quality content, broadcasters can keep their audiences engaged and loyal, even during a recession.
So, broadcasting may be a good option if you’re looking for a business that can weather a recession. With the right mix of content and audience engagement, broadcasters can keep their audiences returning for more, even when times are tough.
13. Credit Unions
When the economy takes a turn for the worse, not all businesses suffer. Some businesses do pretty well in a recession. Credit unions are one type of business that tends to do well during tough economic times.
Credit unions are member-owned financial cooperatives. They are not-for-profit organizations that exist to serve their members rather than to make a profit for shareholders.
This structure gives credit unions lower interest rates on loans and higher interest rates on savings accounts than for-profit banks.
During a recession, people are more likely to default on loans from for-profit banks. This can lead to significant losses for the banks, which then have to raise interest rates to compensate for those losses. But because credit unions are member-owned, they’re not as vulnerable to loan defaults.
14. Brokerage Firms
In a recession, businesses that do well are those that can save money and make money. A brokerage firm is one business that does well in a recession.
A brokerage firm is a company that helps people buy and sell stocks, bonds, and other securities. A brokerage firm makes money by charging commissions on the transactions it facilitates.
In a recession, people are generally more conservative with their investments. This means fewer transactions and less commission income for the brokerage firm.
However, the firm can save money by cutting costs. For example, it may reduce its advertising budget or the number of employees. Despite these challenges, a well-run brokerage firm can still be profitable in a recession.
15. Dairy
In a recession, people may not have as much money to spend on non-essential items. However, dairy products are essential for many people, so businesses that produce dairy products may do well in a recession.
Dairy products are an essential part of many people’s diets, so businesses that produce dairy products may do well in a recession.
People may not have as much money to spend on non-essential items during a recession, but they still need to buy food. Dairy products are a staple of many diets, so businesses that produce them may be more likely to thrive during a recession.
So, if you’re thinking of starting a business, or expanding your current business, consider the dairy industry. It’s an essential part of many people’s lives, and it could be a great way to weather the storm of a recession.
16. Defense Contractors
As the world economy teeters on the brink of recession, businesses are scrambling to find ways to stay afloat.
But some businesses do well in a recession – defence contractors are one of them.
During a recession, military spending is often one of the first things to be cut. But with the current global climate, defense spending is on the rise.
That means more business for companies that produce weapons, ammunition, and other military supplies.
So if you’re looking for a recession-proof business, defence contracting might be the way to go.
Just be prepared for stiff competition – many companies are vying for those government contracts.
17. Agricultural Suppliers
A recession can be difficult for businesses, but some do well despite the economic downturn.
Agricultural suppliers are one type of business that can benefit from a recession. During a recession, people are more likely to cook at home rather than go out to eat.
This means they must buy more food and supplies from grocery stores and other businesses. Agricultural suppliers can provide these businesses with the products they need to keep their shelves stocked.
In addition, many people lose their jobs during a recession. This can lead them to start their businesses, which may require agricultural supplies.
By selling products to these new businesses, agricultural suppliers can help them get started and continue to thrive even during tough economic times.
18. Auto Manufacturers
As the world economy teeters in recession, businesses are looking for ways to cut costs and protect their bottom line. One industry that often does well in a recession is the auto industry.
In a recession, people are less likely to buy big-ticket items like houses and cars. However, they still need to get around, so they may be more likely to buy a used car or truck instead of a new one.
This can be good news for auto manufacturers, who can sell more used vehicles. People may also be more likely to take public transportation or ride-sharing services like Uber or Lyft instead of buying their car.
This can pressure auto manufacturers to innovate and create more fuel-efficient vehicles that will appeal to cost-conscious consumers.
19 . Computer Software
In a recession, businesses have to be smart with their money. Many businesses fail during a recession, but some do pretty well. One business that does well in a recession is computer software. This is because people always need computer software, regardless of the economy.
Another business that does well in a recession is luxury goods. People still want to treat themselves, even in tough times.
So if you’re looking to start a business, or keep your existing business afloat during a recession, consider computer software or luxury goods. These businesses may be just what you need to weather the storm.
20. Accounting and Tax Services
In a recession, businesses have to be careful with their spending. They need to save money and ensure their income is stable.
One business that does well in a recession is accounting and tax services. This type of business helps businesses save money by ensuring that they are paying the correct amount of taxes. They also help businesses manage their finances to stay afloat during tough economic times.
21. Courier Services
Courier services are one of the few businesses that do well in a recession. When people cut back on spending, they often still need to send important documents and packages. \
Courier services provide an essential service, and people are willing to pay for it. Interestingly, courier services did better during the last recession than in previous years.
That’s because more people worked from home and needed to send documents back and forth. Courier services were able to take advantage of this trend and grow their business.
If you’re thinking of starting a courier service or expanding your existing one, now is a good time to do it. People will always need to send essential packages, even in tough economic times.
22. Services for Elderly
As the population of baby boomers continues to grow, the demand for services that cater to seniors will increase.
Businesses that provide these services will do well during a recession, as people are more likely to cut back on discretionary spending than necessary expenditures.
Several businesses cater to seniors, including home care, transportation, and meal delivery services. Home care services help seniors with activities of daily living such as bathing, dressing, and grooming.
Transportation services provide seniors a way to get around without relying on family or friends.
Meal delivery services provide healthy meals for seniors who may not be able to cook for themselves.
Businesses that provide essential services for seniors will continue to do well even during a recession. These businesses offer valuable services that help seniors maintain their independence and quality of life.
23. Private Equity Firms
In a recession, businesses that do well can maintain or increase their revenue while reducing costs.
Private equity firms can help business owners get through tough times and become more assertive on the other side. Private equity firms specialize in investing in other businesses, and they can be a good option for companies looking to weather the storm of a recession.
Private equity firms typically invest in companies experiencing financial difficulties, which can be an advantage during a recession.
The firms provide the capital and expertise that struggling businesses need to turn things around.
In addition, private equity firms often have a good track record of successful investments. While there are risks associated with working with a private equity firm, businesses that do their homework and choose a reputable firm can benefit from the partnership.
24. Textile Producers
As the country braces for a potential recession, some businesses prepare to weather the storm. Textile producers are one industry that often does well during economic downturns. “People still need to wear clothes,” said one textile executive.
“Recessions may cause people to cut back on spending in other areas, but they still need necessities like clothing.” Textile companies have also been quick to adapt to changing consumer trends.
For example, when athleisure became widespread, many textile producers began manufacturing athletic wear and casual clothing. During a recession, people may be more likely to buy cheaper, generic clothing brands.
However, even luxury brands can do well if they focus on selling staples that will never go out of style. For example, a high-end wool coat will sell well even during tough economic times.
25. Retailers of Apparel
When the economy is struggling, people cut back on spending. Apparel retailers see this happen firsthand as people shop less and save more.
Businesses can do a few things to weather the storm and even come out ahead. First, it’s important to remember that people still need clothes. They may not be buying as many new items, but they still need to replenish their wardrobe with essentials.
This is where retailers of Apparel can focus their efforts. Instead of trying to sell the latest fashion trends, they can focus on selling quality items at a lower price point.
Another way businesses can do well in a recession is by appealing to a broader audience. When people are cutting back on spending, they’re looking for value.
26. Steel and Aluminum Producers
Businesses that produce steel and aluminum in a recession tend to do well. This is because these materials are used in various industries, so demand remains high even when other sectors struggle.
Interestingly, steel and aluminum producers often benefit from recessions in other ways. For example, if the price of raw materials falls, they can save money on inputs and become more profitable.
Additionally, recessions can lead to consolidation in the industry, which gives the largest firms a larger market share and allows them to increase prices.
So if you’re looking for businesses that tend to thrive during periods of economic downturn, steel and aluminum producers are worth considering.
27. Real Estate Agents
Certain businesses always seem to fare better than others when the economy worsens. Real estate agents are one such profession.
In a recession, people are more likely to hunker down and stay put rather than move, meaning there is less need for realtors. But that doesn’t mean real estate agents don’t do well in a recession – far from it.
People are more likely to invest money in their current property when they are reluctant to move. That means more business for real estate agents specializing in home renovation and improvement.
So if you’re thinking of becoming a real estate agent, or are already in the business, rest assured that you’ll still be able to find plenty of work even when the economy is in a downturn.
28. Car Dealers
What do businesses have to do to succeed during a recession? The answer for car dealers is to offer quality vehicles at low prices.
To survive a recession, businesses must make changes in how they operate. For car dealers, that means offering quality vehicles at low prices.
Car dealers must offer good vehicle deals to attract customers who cut back on spending. Car dealerships offering quality cars at low prices are more likely to succeed during a recession.
Customers are looking for good car deals; if a dealership can provide that, they will be more successful. During a recession, businesses need to be able to adapt and change to survive.
Strategies For Success Business In The Recession Period
Many organizations are forced to tighten their belts and make tough decisions in the current business landscape. The recession has put a lot of pressure on businesses, but there are still opportunities for those willing to adapt and change. Here are some strategies for success during this challenging period:
- Review your expenses and find areas where you can cut back. This may mean making tough choices, but ensuring that your business is as lean as possible during these challenging times is vital.
- Focus on your core offerings and ensure that you’re providing value to your customers. This is the time to focus on what makes your business unique and how you can best serve your target market.
- Stay flexible and be willing to pivot when necessary. The key to success during this period is adapting quickly to changes in the marketplace.
- Make sure you’re providing excellent customer service and working hard to maintain strong relationships with your customers.
- Keep your overhead low and watch for any signs of growth in the marketplace so that you can be ready to seize new opportunities as they arise.
- As you can see, the early days of a business aren’t always easy, but they are critical to your long-term success.
- Keep your overhead low and watch for any signs of growth in the marketplace so that you can be ready to seize new opportunities as they arise. As you can see, the early days of a business aren’t always easy, but they are critical to your long-term success.
- 8. Be willing to take risks and be open to change. The more you can learn and the more you can adapt, the more successful you’ll be in this stage of your business’s development. If you work hard and play by the rules, you’ll be able to get through this stage relatively unscathed.