Entrepreneurs are often the first to feel the impact of a market crisis. Here are some key effects:
Reduced Access to Capital: During a crisis, investors become more risk-averse, making it harder for startups and small businesses to secure funding. Declining Sales: Consumer spending typically drops, affecting the revenue streams of many businesses. Supply Chain Disruptions: A crisis can interrupt the supply chain, causing delays and increased costs for raw materials and products. Increased Competition: As the market contracts, businesses often compete more fiercely for a smaller pool of customers.