The economic doom and gloom also creates golden opportunities, according to the departing chairman of business incubator The Icehouse.
Icehouse co-founder David Irving - who stepped down as chairman this month, replaced by Greg Cross - said although people will become careful with expenditure, the downturn shouldn't be interpreted
as all bad.
"[The recession] doesn't stop the world. It hasn't ceased and in these times there are people who exploit these circumstances," Irving said.
"Companies have got to recognise the change that is going on and shift their business to the area where growth will occur.
"You have to be cautious but you've also got to be a bit brave and so you've got to look for opportunity out of this."
The former chief executive of Wattie's is personally involved with several small companies, including a part-share in Waiheke vineyard Cable Bay. He said trade at the Cable Bay restaurant was up 25 per cent on the same time last year.
Irving recognised not every business was feeling the glow of growth in a cooling economic climate.
He said companies suffering from a dramatic slowdown in business may find it difficult to think objectively and needed to seek advice from people who had survived tough economic times.
"People who have been through a lot, have an affinity with your circumstance and someone who you can talk with."
Irving said accountants needed to pitch in to help businesses pull through.
"Accountants have got a real role over this period to help business in understanding where their earnings are coming from and where they're losing money and show them that very vividly.
"Too many times, and even back in my old days in Watties, we did not know where we were losing money and it was just poor accounting."
Since it began in 2001, The Icehouse mantra has been about growth. Irving said that focus would not change but programmes would be tailored towards business resilience.
Although he is stepping down from his governance role , Irving will be on hand to help owner-manager companies survive the recession.
