Poor economy is caused by the economic recession that has hit the world making business operations very complicated. The recession is characterized by high rate of inflation, high unemployment rate, low consumer spending, low marginal propensity to save and high interest rate among others.
These factors directly affect the economy making it unwise to start the business in a poor economy. Additionally, though governments try to implement monetary and fiscal policies that can stabilize the economy, the existing uncertainty make it complicated for any entrepreneur to make a viable economic decision concerning the future of the business and economy at large. In respect to the bank interest, in a poor economy, there bank interest rates are very high making it very costly for a business to borrow money whose purchasing power is very low. The purchasing power depreciates due to the existing inflation economic meltdown.
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