If you have an entrepreneurial mind and are looking to start a business, it is natural to find yourself worrying about diminishing profits during periods of recession. Job security is hard to come by for the vast majority of the UAE's people during a recession. Luckily, a few recession-proof businesses survive or even flourish during economic downturns.
Starting a business in the UAE is undoubtedly the best decision to reward the entrepreneur inside you with the best of the best. But have you thought of surviving through the recession? With the COVID-19 pandemic hitting globally, many entrepreneurs lost their businesses and went bankrupt in a mere month. Such a crisis may come in the future too. While none are genuinely immune, several companies tend to weather these types of storms.
Recession-proof Companies to Start
We've broken down our favourite recession-proof business ideas in the UAE into five categories and provided proof that each business has held up or even flourished during a significant recession, the needed skill level essential to be successful, and the earning potential to help you decide which business idea is right for you.
1. Food Delivery - Quite a Business for Recession
Food is almost impervious to downturns. A 2015 Global Restaurant Investment Forum (GRIF) report identified street food as an emerging trend in the GCC regions and the Middle East. Meanwhile, the food truck scene got a massive boost from the Eat the World DXB festival, and food delivery services popping up by the day. Individuals with the right skills don't need to own a restaurant or catering business to provide this service. They collect food from local restaurants and deliver it. Plus, they can work with a company specializing in mobile app design to ensure your service reaches the most people.
2. Healthcare - An All-Time Needed Service
According to the report published by U.S-U.A.E Business Council 2018, the healthcare industry in the UAE is expected to boom and meet the challenges that are supposed to be covered in Vision 2021. By the end of 2025, it is predicted to be a 101.94 billion AED market. During the coronavirus crisis, healthcare and pharmaceutical companies were thriving and continue to thrive as health is something an individual keeps on a priority list. And the UAE has been substantially growing in the domain of the medical and pharmaceutical sectors. It is a well-suited destination for business entrepreneurs and established businesses to initiate or expand their business.
3. Tutor - Is One of the Businesses that do well in a Recession
Education doesn't stop for anything. Not for a pandemic, definitely not for recession. Therefore, tutoring is third on our list of recession-proof business ideas you can consider in the UAE. There will always be work in the UAE for teachers, from the academic to the vocational. Private tutors have good earning potential given the number of potential clients. To cut down on costs (for you and your students), you can also do some of your teachings online. This is especially useful given the current social distancing requirements but is a great way to earn extra money regardless.
4. Bookkeeping, Accounting, and Financial Planning
Benjamin Franklin got at least one thing right: Nothing is certain except death and taxes. Also inevitable. Most people don't want to do those taxes on their own. That is where professional services come into the picture. It's common for accountants to see an increase in business during a recession – helping individuals and organizations make use of the tax advantages available to them while also giving them visibility over their income and expenditures during difficult times.
As we have seen During Covid-19, we have seen the UAE government creating new programmes, stimulus packages, and loan schemes as hope for managing the crisis. Having a tax accountant on-hand in these situations becomes essential for businesses trying to get through a recession.
5. Cleaning Services - One of The Recession Proof Business Ideas
During the COVID-19 crisis especially, physical, public spaces need to be cleaned—hence why a cleaning service that focuses mainly on public areas—like banks, hotels, businesses, grocery stores, offices, and even hospitals, if you're trained to do so—are especially in-demand right now. If you don't have the resources to take on such huge cleaning projects, you can certainly try your hand at personal cleaning services. What's more, it is estimated that the number of cleaning companies in Dubai has increased by as much as 45% in the past few years, and the demand is still growing.
Why are these the best businesses to start during a recession?
For the most part, these businesses provide essential products or services that hold regardless of the economic situation, like education and repairs. Others provide specifically to people's changing habits and preferences. In this recession, those habits are twofold: First, almost everyone is working and living remotely; and secondly, almost everyone is saving money. For that reason, businesses like online learning and e-commerce resale can succeed right now.
The Bottom Line
The recession-proof business ideas aforementioned are just a small sampling of the businesses that are entirely viable to start during a recession. So if any of these ideas resonate with you, then we at Commitbiz can help you start the UAE business. Right from business incorporation to office space, we cover it all.
Get in touch with us today!
Is it best to start a business during recession times?
Though it is not advisable, at least choosing recession proof businesses can be a decent option.
Is the UAE a good option to start a business during a recession?
Yes, UAE is a low-risk nation and is one of the best places to consider your business set-up.
What are some of the recession proof businesses?
Businesses like healthcare, food, and transportation are some of the better options.
Is it good to do a job or business during a recession?
There is no solid answer as both can get affected. It depends on the type of recession, its characteristics and the nature of your work etc.
How to protect business during recession?
The one solid way to protect your business during a recession is to diversify it.