Some links on this page may contain affiliate links which means that, if you choose to make a purchase using the link, Agricfy.com may earn a small commission at no extra cost to you. For more information, go to our Affiliate Disclosure Page!
It’s no longer news that recession looms around some of the major countries around the world. It’s not a matter of it’s not going to happen but a matter of “What can be done so it doesn’t affect you as a person?”
Countries like the US, Uk, and Canada has been warning about how bad the recession can affect people and in a way make people lose their job and hereby affect their expenses.
A Forbes article talked about how inflation is affecting the Federal reserve thereby the people should be preparing for a recession that is about to hit the State.
You can read more about this article here.
The death of Queen Elizabeth II last week is salt added to the injury of the Uk.
Her death will have a very massive impact (negatively) on the economy that has been preparing for a recession in the last quarter of this year. Before the death of the Queen, the newly appointed Prime Minister Liz Tuss talked about how they are preparing for what is to come in regard to the high increase in energy cost.
Not to mention the impact of the Russia-Ukraine war on economies around the world.
Adding one or two together, you will see that recession is inevitable among countries even third-world countries.
What should you do as a person to keep yourself afloat and beat the crowd? PREPARE.
How do you prepare for a recession? Increase your streams of income.
If you’re an employee still in service, find other ways to make money. If you’re an employer, keep some reserve and also find a way to make more money through other business opportunities.
No matter how bad the economy is, there are still businesses that will thrive and survive excellently even during a recession.
What is A Recession?
A recession is a period where economic activity is a downturn that directly or indirectly affects the people of the state.
According to Investopedia, a recession is a significant widespread, and prolonged downturn in economic activity which could last from six months and above.
A reduction in the Gross Domestic Product (GDP) has been the major contributor to the recession of a country.
One of the major causes of recession is due to financial factors. There is a connection between economic, financial, and/or psychological factors.
The recent that hit major states can be traced to the recent pandemic that hit the world in 2020. The world has not recovered from what happened then and it seems it will never recover.
Advantages of Starting An Agribusiness During A Recession
As we have explained above, a recession is not a good thing for the economy but can also be a life-changing event for some businesses (especially small businesses). In this chapter, we’ll look at some of the advantages of starting a business during a recession.
- Small Businesses Thrive
One of the advantages of starting a business during a recession is it gives opportunities for small businesses to survive.
During this period, many large companies definitely lay off staff but in that manner, many small businesses will spring up and start doing well.
Some people will not be able to patronize big organizations for purchases thereby making it easy for small businesses and solopreneurs to make money by selling more.
Although it might not be a walk in the park for all, some businesses will have their breakthrough.
So, if you are someone that has been thinking of starting a small agribusiness, now is the best time to make that happen.
- Materials and Equipment Gets Cheaper
Another advantage to starting a business during a recession is materials and equipment will get cheaper.
Yes, you might say things will be expensive but sorry to disappoint you raw materials will become cheaper than before. Many companies will want to dispose of their equipment because of either winding up or filing for bankruptcy.
- Better and Quality Staff
Next, the advantage of starting a business during a recession is you get the chance to employ quality staff for your small business at a cheaper cost.
Many people lose their job during the economic downtime (recession) but it also gives small businesses the opportunity to get these employees to work for them at a somewhat cheaper price than they would have paid.
So, if you are someone looking for a worker to help you in your small business, the recession is a good time to get them.
- Increases Efficiency
Another advantage to starting a business during a recession is it increases efficiency among small businesses. An increase in competition among small businesses aids efficiency.
Small businesses that spring up during a recession or bad economy will want to outdo themselves in order to stay in business.
They won’t want to fail their customers who have run from the big companies to patronize them thereby increasing their efficiency.
Disadvantages of Starting An Agribusiness During A Recession
No matter how good something is, there will be a downside to it. Let’s talk about the cons of starting a business in a recession period.
- Difficulty In Accessing Loans
The first disadvantage of starting a business during a recession is the difficulty in accessing loans.
Financial Institutions will want to hold back monies they should give out to businesses because of uncertainty. They are not sure if the business will survive the recession period even though it’s just starting.
So if you’re thinking of starting an agribusiness during a recession without your personal finance, it will be difficult for you to access a loan to start.
2. Marketing Becomes A Problem
Just like accessing loans, starting an agribusiness or any business during a recession will make marketing your product(s) difficult.
Companies will not want to chunk out money to advertise because they are keeping money aside to help survive during difficult times. This single act is a lose-lose situation for those involved in the business (i.e the advertising company and the small business).
3. Less Profit
Another disadvantage to starting a business during a recession season is it leads to less profit.
Even though many businesses spring up during a recession, there is enough competition among these small businesses.
This competition will force you to reduce the prices of your products as there is no monopoly of customers which leads you to make bare to minimum profit on whatever you sell.
Agribusinesses You Can Start During A Recession
Looking beyond the negative things life has to offer, let’s take a long at what positive things you can do during this recession season.
There are different businesses you can start during a recession and that may be the beginning of an easy life and maybe make you a millionaire.
Some of the businesses that will likely spring up during this period are but are not limited to:
i. Accounting Services
ii. Catering services
iii. Delivery Services
vi. Cleaning Services
I can go on and on to mention different businesses you can start during this period but we want to focus on agribusinesses cos that cannot be left out.
No matter how bad the economy can be, people will definitely eat and some of the business ideas I mentioned above are intertwined with agriculture directly or indirectly.
In this article, I will be discussing the different agribusinesses you can start during a recession.
Agricultural business is increasingly becoming popular in the world today and we cannot run away from the fact that we cannot survive without agriculture cos like my slogan “AGRICULTURE IS THE FUTURE”.
1. Vertical Farming
The first agribusiness you can start when during a recession is vertical farming.
Vertical farming is fast becoming a common type of farming in this century. It is in fact taking over from the traditional type of farming.
What is vertical farming? Vertical farming is the method of farming in a vertically stacked form. Vertical farming is usually done in an enclosed environment. It can be done in hydroponic or aeroponic.
Vertical farming is mostly done by people who don’t have enough space to practice farming but want to go into agriculture.
I have an article that fully explains what vertical farming is and how you can start a vertical farm. Check it out HERE.
2. Poultry Farming
Another agribusiness you can start during a recession is poultry farming.
Poultry farming needs no introduction as it is one of the most lucrative business anyone can start with little money.
If you don’t want to go commercial with your poultry farm, you can start a backyard poultry farm. This will help you save costs on buying meat outside and you can make money by selling the little you raise to neighbors around.
There are different types of poultry farms you can start without stressing much but if you are worried about which poultry bird you should raise, read this article on the different types of poultry birds.
People may say that poultry farming is saturated but the truth is if you do your research well, there are different things that people in your community want that nobody is attending to. Take advantage of this opportunity, build a business and make money for yourself.
You can read the article on how to start a poultry farm to begin your journey to building an empire in the poultry business.
3. Fish Farming
Next on the agribusinesses, you can start during a recession is fish farming.
Fish farming is very broad just like poultry farming. You can make a fortune from fish farming if you do it right.
It is not a get-rich-quick scheme but when done right, you can make a living out of it and build a brand beyond the recession period.
Fish farming is fast becoming a thing around the globe due to the high increase in the cost of meat. in the past year, I have received messages from people from different countries that are interested in fish farming.
In fact, in 8 months I have helped 4 persons start a fish farm in 4 locations and 3 different countries (Lokoja, Nigeria; Bo, Sierra Leone; Lome, Togo; Ogun State, Nigeria). This is an indication that fish farming is gaining ground.
There are different types of fish farming you can venture into depending on your location. For example, countries like Ghana, Togo, and Sierra Leone are mostly invested in Tilapia fish, and just recently they start having an interest in catfish farming.
On the other way round, Nigeria is more into catfish farming and just started gaining interest in tilapia fish.
What this means is that your location will determine the type of fish you will start.
Are you interested in starting a fish farm? Read this article on what you need to start a fish farm.
Another agribusiness you can start during the recession is Apiculture.
Apiculture is the art of keeping bees.
Apiculture is another word for beekeeping. “Apis” is a Latin word that means “Bee”. Beekeeping is becoming as well and people are making money from it.
Honey is gotten from bees and honey is used for so many things. If you’re someone that want to go into agribusiness but the lowkey side of the industry without much attention, apiculture is one of the business you should consider going into.
Below are some of the most common varieties of bees:
- Apis Dorsal
- Apis indica
- Apis Florea
- Apis Melliferea
Read this article on bee farming as a guide if you want to start a bee farm.
5. Organic Vegetable and Fruit Farming
The fifth agribusiness you can start in a recession period is organic farming.
Even in a recession, people want to eat healthily while trying to save some money. Starting an organic farm is something you can consider even if you’re not doing it commercially.
Organic farming can save you a lot of money. You can start this type of farming in your backyard without stress and much money.
Gardening is fun for some people and you can join this type of people.
Do your research, get the necessary equipment you need and start your own organic vegetable farm.
Some of the vegetables and fruits you can plant organically at home are but are not limited to onions, okra, vegetable, tomatoes, spinach, etc.
A recession is not a really bad thing if you plan well. Even if you still have your job, planning ahead for the rainy days is a wise thing to do.
In a summary, here are the 5 agribusinesses you can start during the recession:
i. Vertical farming
ii. Poultry farming
iii. Fish farming
v. Organic Vegetables and Fruits
Agribusiness is big and if you have not joined the community of farmers that is providing food for the world, now it’s time to do so.
The list of agribusinesses mentioned in this post is a mix of livestock farming and crop plantation so you can choose from an array of opportunities in the agricultural sector and start something.