Role of economics in management

If the economic climate is bad, the business manager is less likely to invest in an idea or entrepeneur, as they're taking a risk by spending money on something that may not bring a profit at all. All things in business are designed to bring a company or business profit.

However if the economic climate is good, the business is more likely to invest in something.

Example: 1920s. lots of businesses investing in stuff

1930s: no money, Stock Market crash, hardly any investment