Economic downturns can be devastating for businesses. Covid-19 claimed many thousands of local shops and restaurants, but it doesn’t take a pandemic to do a business in. Without careful planning and a robust understanding of finance, it’s easy to make small mistakes that can have enormous ramifications.

In this article, we take a look at how understanding economics can help get your business through downturns.

Micro Versus Macro Economics

Microeconomics refers to the economic factors that pertain to a single business or community. Macroeconomics, by contrast, refers to financial situations that are occurring on a global scale. This could include things like a viral outbreak, or a natural disaster that shuts down major supply chain lines.…