TRESVISTA FINANCIAL SERVICES
Business Cycles and
Entrepreneurial Activities
– By TresVista Financial Services
Business Cycle is the recurring and fluctuating levels
of economic activity that an economy experiences
over a long period of time. Entrepreneurship is more
than simply starting a business. We understand
entrepreneurship as a process through which individuals
identify opportunities, allocate resources, and create
value. This article analyzes the correlation between
entrepreneurship and business cycles and highlights the
role of entrepreneurs in various economic phases.
Business
Cycle
The four stages of a business
cycle are growth (expansion),
peak, recession (contraction),
and trough.
In other words, business cycles
are recurrent periods during
which the nation’s economy
moves in and out of recession and recovery phases.
There are short-term (2 to 3 years) to long-term (50
to 60 years) business cycles. These fluctuations are
generally irregular, varying in frequency, magnitude,
and duration and are often measured using the real
GDP.
Business Cycles are recurrent periods during
which the nation’s economy moves in and out of
recession and recovery phases
October 2011 | INDUSTRY INTELLIGENCE
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