To examine what entrepreneurial activities Abbey properties UK used to survive the recession from 2007 - 2010 – Thesis Example

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Turner (2008, 67) asserts that estate agents are viewed as well paid with high fees they usually charge for their services in buying and selling homes. Thus, the public is not likely to offer much sympathy to them, as most of them are facing job losses. Though, real estate industry faced difficult times in the past, the 2007-2010 recession period was worse due to the projected paralysis of the business in which property agents make their earnings. With many companies cutting jobs, employees are uncertain of their individual financial future, this results into fewer willing buyers though the number of homes on available for sale may be higher than before.

Banks as well as other financial are more concerned with where the economy is going in regards to real estate and are taking a close look at the market trends. Thus, they are granting fewer mortgages than approved (Newman, 2011; 187). Besides the insecurity in the job market in many industries, there are increased expenses of fuel and energy, worsening the problems already facing real estate agents trying to sale their properties.

As Newman (2011; 187) explains homeowners are more worried about the costs of heating and lighting a home than before, and this plays a major part in deciding if they will buy the home or not. Business activities in the real estate industry fell to record low in 2008 when the recession was at its peak. In deed the CEBR projected then that the industry will only record similar numbers of sales in reported in 2007, in 2012. With job cuts still going on, more and more people will be willing to sell their homes in order to improve their income.

The major problem is that during this time, the market is saturated. As observed by Balzli and Janko (2007; 80) owing to the difficulty in selling homes during the recession, a lot of homeowners reduce their prices in a bid to get a buyer. This implies that they get less profit and thus the fee paid to estate agents is considerably reduced. On other occasion, after a long time of waiting for a buyer and reducing prices, the homeowner may decide not to sell the home and wait for better prices; this means that estate agents do not receive any commission.

During recession, many estate companies suffered declining prices of their shares and less earning, leaving with one option, reducing the size of their employees to keep them aloft, very few like Abbey Properties managed to survive without such drastic measures. The basic survival of the firm According to Kogut and Zander (1996; 510) entrepreneurial orientation of a company is illustrated by the level to which the top management take risks, adopt to change and exploit innovation to attain competitive advantage.

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