43 Recession Proof Businesses (2023)

Last updated: Sept 09, 2021

Recession is undoubtedly a time of high crisis, and you’d think that everything will slowly start crumbling. Well, that is not true in most cases.

By most cases we mean businesses.

We can all agree that during a recession, most businesses are affected, some are impacted a-lot (i.e., non-essential, luxury goods, tourism) and some face medium or low impact (i.e., essential goods). 

When people have limited disposable income, they tend to spend less on luxury goods/ entertainment and restrict their spending to essentials and avoid major purchases.

And Yes!

There are businesses that thrive during the recession period. Many kinds of businesses remain immune to the effects of recession.

Let’s take a look, here are 43 businesses that are Recession Proof or face medium to low impact during recession. 

Did you know – technically, a recession is defined when there are two consecutive quarters of negative GDP (Gross Domestic Product) or a decline in economic activity.

Medium Impact during the recession

The following businesses will have a medium level of impact during the time of recession. 

1. Coffee shops & Cafes

You can say that shops are magical places that people need at the time of crisis more than ever. They need a peaceful place to escape and throw away their worries.

When people lose their jobs, coffee shops provide them with an inexpensive workplace with free Wi-Fi to apply for a job. Example: Starbucks

In 2020, Starbucks reported a smaller drop in sales compared to companies that operate in other sectors within the food industry. However, the company’s revenues were boosted by an increase in drive-thru and delivery sales options. 

2. Movie Theatres

During the tough times of recession, people need some distractions and divert their minds to focus on something entertaining. Movie night provides a perfect distraction from the dreadful recession period.

People visit movie theatres more often in these rough times and get lost in the thrill which movies provide. Often times, instead of going out of town on family vacations, movies are a good alternative for family outings.

3. Bakeries

Bakeries keep running with the full flow as people don’t stop buying bread, junk food, cakes, and other bakery items.

The recent global health crisis has devastated economies leading to a decline in sales for many businesses except bakeries. According to America Baker Association, sales of baked products increased by 62.3% in 2020, with sales of cookies and crackers increasing by 44.3%.

4. Repair and Maintenance Services

This is another one of those businesses which will hardly ever shut down unless and until the owners themselves decide to shut it. Otherwise, Home repair and maintenance business demand always stay constant. People will always need repairing services because anything can get damaged anytime.

5. Dry cleaning and Laundry

People prefer to stay clean and wear fresh clothes even at the time of recession. Laundry and dry-cleaning business keep running, staying rather unaffected.

A study conducted by Research and Markets in mid-2020 highlights that the dry cleaning industry experience an increase in demand even in times of economic slowdown.

Even though the impact of a recession on dry cleaning and laundry services varies depending on the customer base, most businesses in this sector experienced a smaller decline compared to companies in other industries.

6. Accounting and Tax Services

During these uncertain economic crises, accounting and tax services business comes in handy to many entrepreneurs and cooperations. They need accounts advisors by their side to be certain and confident.

While most companies struggle due to economic turmoil catalyzed by a recent health crisis, the demand for accounting and tax services has remained steady with several accounting firms reporting an increase in demand.

7. Auto Repair Business

Car repair businesses are handy in the times of recession as cars are a necessity and if a car is damaged, people cannot avoid getting their car fixed no matter how expensive it is.

8. Cleaning Services

Businesses and houses always need cleaning services no matter how hard the times are. Keeping your space clean is essential and thus cleaning company keeps running.

9. Property Stagers

Real estate agents will hire property stagers even at the time of recession to make the house look presentable, so they are able to sell it.

10. Event Management

Event management business is rarely affected by a slow economy, as people and businesses promote positivity through various events and hire an event management team to construct a successful event.

11. Wedding Organizers

In a period of stress and gloominess, people still have weddings and hire wedding organizers to plan a wedding and welcome this distraction

12. Photography

This is a kind of business from which you can earn anytime, even in the recession. With good photography skills, people will hire you for various events, and you can even earn through freelancing.

Low Impact during the recession

The following businesses will have a low impact during the time of recession. 

13. Water, Sewer & Trash Disposal (Utility)

Throwing out trash and water/sewer management is necessary even at times like these. So, a utility business will stay unaffected even at the time of recession.

14. Health Services

Clinics, hospitals, health consultant’s, etc. never run out of business and stay unaffected by the recession. People need health services even in these hard times and more so than usual.

15. Funeral services

Death is a natural phenomenon and can occur at any time in a man’s life. 1000’s of people die each and every day around the world. So, even during recession people die and death care services business remains in demand even then.

16. Veterinary Services

Like humans, animals also require doctors to keep them healthy and away from harm. Vet services business keeps on running in the recession period, as people who love their pet animals want to keep them healthy and clean.

17. Make-up

Make-up accessories and products are a part of our daily lives. People apply it several times a day. The period of recession is no excuse for them to stop using it and they still pay for it even in times like these to keep up their good looks.

18. Baby Products

As babies are a part of a natural life circle and creation process, baby products are a necessity for people. So, the business of baby products rarely crumbles.

19. Pizza Delivery

Pizza is a type of fast food which everyone loves to eat whenever they crave it. So, pizza delivery businesses won’t drop even in a recession as its simple for people to call and order pizza and get it delivered at your doorstep.

20. Services for Elderly

The elderly people are increasing in number as their life is turning out longer. There are many old homes almost all over the world, and these homes always need people to provide their services, recession or no recession.

21. Liquor and tobacco

You can’t expect people to stop drinking and smoking at a time of recession. Turns out, they drink even more in these times. Whether you sell beer, wine or liquor or better yet all three, your business will surely receive a great deal of revenue.

22. Grocery Stores

Considering groceries are essential goods, their sales tend to stay fairly consistent during a recession. However, people tend to look for cheaper alternatives or substitute brands for their preferred products.

Example: Costco, Walmart, Target, Publix etc.

23. Candy & Chocolate Stores

At a time of recession, people surely visit candy stores often as they crave sweetness. Candies and chocolate apparently calm your nerves and stress by giving you that sugar rush.

Also, people make various chocolate desserts at home no matter how hard the times are. The chocolate business will keep running and earning even in the recession period.

24. Information Technology Services

Information technology is an ever-growing field which will never slow down. People and businesses need IT services almost all the time. Example:   Microsoft, Oracle. 

25. Courier Services

This is a business which will keep on running no matter how good or unstable the time is. People are always sending and receiving couriers. For example : FedEx, UPS

26. Hair Salon

People feel the need to treat themselves in times of recession by changing their hair, and they need a hair cut every now and then. Hair salons won’t go out of money.

27. Vending Machines

Vending machines business does not get much affected by the recession because they are convenient for selling items at low prices.

28. Daycare

Home-based daycare business is trusted more by people during the crisis period, and by far daycare is recession proof business.

Cash-strapped parents turn to home-based daycare because they are cheaper compared to institutions that offer daycare along with kindergarten.

29. Telecommunications

During a recession, people tend to keep their phone and internet lines. However, they may choose to downgrade their phone or data plan.

They opt to connect with loved ones over the phone or online instead of visiting due to economic constraints.

30. Online video streaming services

Video streaming subscription services such as Netflix, Amazon Prime will have a minimal impact because these services provide high-quality content and act as a source of inexpensive entertainment during a recession.

For example, Netflix added over 10 million subscribers taking the total to 193 million paid subscribers worldwide in the first six months of 2020 even though the entire world was grappling under economic challenges.

However, if people have multiple video streaming services such as Disney+, Apple TV+, HBO etc., they may choose to discontinue some of these services.

Thrive during recession

The following are the businesses that will do extremely well during the time of recession. 

31. Discount stores

In a period, full of crisis that’s a recession, the public usually visits emporiums to buy stuff in bulk and at discounted rates to save their precious money. TJMax and Dollar Tree grew tremendously during the 2008 – 2009 recession period.

32. Education (e-Learning)

Since learning and education are an ongoing process, teaching and tutoring business won’t be affected severely by the recession. In fact, it is often noticed that people go back to universities and get higher education and develop new skills at the time of recession.

33. Fast Food

Recession or no recession, everyone still needs to eat, either it’s at grocery stores or fast food restaurant,  inexpensive food business thrives. For example, fast food chain, McDonald’s grew its business during the 2008-2009 recession.

34. Social Media Businesses

During the time of recession, social media business i.e Facebook, Twitter thrives the most as people feel the need to share all kinds of things from news to entertainment with each other, irrespective of the borders. 

35. Safety and Security Services

It’s normal for people to demand safety and security services at the time recession. Since the crime rates double in these times, the security provider’s business increases.

36. Online Marketing

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Those who run online marketing business, profit the most from the recession period as many companies around the world tier down on their traditional marketing campaigns and budgets.

37. Insurance

In a recession period, people are scared of losing jobs, and so they get insurance to be secured. Insurance businesses give people a sense of security.

38. E-commerce (Delivery)

Where physical stores struggle to keep selling various commodities during the recession, your online selling business can thrive, as it’s an inexpensive alternative to brick and mortar stores. Example: Amazon, eBay, Letgo, offerup

In the first six months of 2020, many retailers made immense losses with several on the brink of total collapse due to recent events. During the same period, Amazon hired over 100,000 new employees and plans to add 75,000 more in the US to cater to a sharp increase in demand.

39. Home security & alarm systems

Crime rate tends to increase during the recession that forces people to take additional security measures to protect their properties. Due to fear of break-ins, people upgrade their home security and alarm systems.

40. Freelancer

Freelancer work for various local and international businesses comes in demand more than ever during economic crises because businesses look for an inexpensive alternative to hiring new employees.

In most cases, highly skilled and experienced workers laid off by companies trying to afloat will migrate to the freelancing sector. Recent economic uncertainty due to the global health crisis catalyzed mass layoffs and migration of experienced employees into freelancing leading to an increase in the supply of cheap freelancing services.

This enticed SMBs seeking cheaper alternatives leading to an increase in demand for freelancers by 25% from April to June 2020.

41. Video conferencing and collaborative Apps

Given the current situation, most companies are making their workforce remote. They are using video conferencing solutions such as Zoom, Skype, and collaborative tools such as Microsoft Teams, Slack, etc.

From February to June 2020, users of Microsoft Teams increased by 894% while the number of Zoom users grew by 677%.

42. Contraceptives

At a time of recession, people do take comfort in being intimate more so than usual. To avoid getting pregnant at such a harsh time, they buy more contraceptives to be safe.

43. Debt-Related and repossession services

These kinds of services are needed more than ever in the recession period. A debt counseling business or debt collection/repossession services will thrive because of their increasing demand due to loan payment defaults etc.

If you are an entrepreneur and think of investing in of these businesses, you are definitely making a wise decision.

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