Home featured Economy Expert Featured Economy How market volatility affects small business Compare Forex Brokers February 7, 2018 It’s far from a secret that macroeconomic trends can have a major impact on small businesses. Among the trends that typically has the greatest impact on these small enterprises is volatility in the market. When markets become unstable, the results can make or break the small businesses that make up the core of most economies. Here’s what you need to know about how different types of volatility in the market can affect smaller and medium-sized business enterprises. Price Volatility There are many different kinds of volatility that can emerge as trends within various global markets. One of the most obvious examples that has a direct impact on smaller businesses is that of price volatility in commodity and raw materials markets. When prices rise quickly, small businesses are often left in the position of accepting lower profit margins or charging their customers more. Though volatile prices for raw materials can negatively impact larger businesses as well, the fact that small enterprises rarely have enough warehouse space to buy their materials in bulk leaves them more vulnerable to rapid price increases. In the case of price decreases, however, small businesses can also benefit from volatility. Currency Strength Another market in which high levels of volatility can affect small businesses is the Forex, or foreign exchange market. According online FX experts Compare Forex Brokers , the Forex market is effectively the sum of all global