What are the effects of the Recession on Business?

Before getting into how the Recession affects counties on a global scale, understanding the Recession's negative effects on business is necessary. Economists officially defined a recession as two consecutive quarters of negative growth in GDP or Gross Deomestic Production. The GDP is most commonly used as a countries indicator of it's economic health and standard of living.

Obviously our GDP is low and declining because we're in a recession, but what does that mean for our big corperations?

Well to start off the businesses effected by the recession will lose profit and as the revenue declines so will the rate the companies hire workers. The companies can also freeze hiring all together which puts the extremely high unemployment rates in a bad position. The firm might also stop buying new materials/resources to maintain the quality of their product. A business might also will cease devolopment of new products depending on the price which is steadily increasing because of the recession. This will effect all other business large or small and is bad for the economy.

While all of this is happening shareholders aren't investing as much because of the lack of production or positive income being made by the big time firm but thats another story.






My question for the bloggers is:
What effects does big business have on small business?