How does inflation affect entrepreneurs?

Do you still remember everything you bought with RD$5 in your childhood and now you don't buy even half? Well, that's inflation .
¿Cómo afecta la inflación a los emprendedores?

Inflation and Entrepreneurs Currently we hear many economists and people say: "Inflation is this... or inflation that", but how does it really affect entrepreneurs?

First we are going to define the concept of inflation , this refers to the increase in the prices of goods and services over time. So inflation is normal, and we are going to experience it throughout our lives.

Do you still remember everything you bought with RD$5 in your childhood and now you don't buy even half? Well, that's inflation .

Inflation is due to several factors, but one of the main ones is the law of supply and demand, when there is a shortage of a product or material demanded, this increases its price, which affects each of the blocks in the chain. . Reaching entrepreneurs when purchasing products.

How does inflation affect your business ?

  • The acquisition of products is reduced.
  • Raw material prices increase.
  • Shortage of products.
  • The increase in loan rates

What can be done?

  • Reactivate sales, through promotions
  • Evaluate the operating costs of your business
  • Develop new aspects in your business
  • Establish a sales plan
  • Plan your cash flow

Well, we hope that this explanation of inflation in your business has been helpful, these are some measures that we must take into account, but there are many other alternatives.

Which ones do you know? Share them in the comments.

Emi Group RD

Desde 2017