How does Poverty Affect the Business

Poverty is one of the leading problems of the world, especially in underdeveloped countries. As the population of the world increases, it is somewhat a common problem wherein many people cannot have the means to afford proper food, shelter, clothing, and other necessities.

However, how does poverty really affect the business? This question will be answered in this article, so read on.

What is Poverty?

The explosion of the population is one of the factors why poverty increases. Unfortunately, a child who is born with unemployed parents with a disorganized life, is more or likely that they will experience poverty when they grow up. As a result, they will grow up malnourished and uneducated. This may lead some of them to linger around the street, take some prohibited drugs and perform some crimes like burglary. Now, this is how poverty affects business. As you know, the main target of these impoverished people is to steal the items or money from these businesses or establishments just for them to have the means to buy foods and other necessities for their loved ones or even for their vices.

Poverty and Crime

Poverty and crime are somewhat connected with each other. This is because many people are being pushed to do crimes just to get out of poverty. Being extremely poor is not easy because you don’t know where will you get money to buy food and other needs especially if you have lots of children. Crimes like robbery and even murder in some cases are very common especially in suburban or communities wherein there are a lot of uneducated and unemployed individuals.

The Affect of Poverty on Business

Any type of crime due to poverty has a significant impact on the business. The first one is the loss of revenue or income especially if the profit of the business has been robbed. Even though you can still able to recover it by doubling your effort and sales, it’s still very difficult to lose revenue. In case the property or the establishment itself has been burned or damaged due to crimes like arson, it is not easy to put things together again. It will take months to years until you recover from your loss. In some cases, businesses may become bankrupt especially if crimes have caused them extreme damage not just to property but also to revenue and capital.

Solving the Problem of Poverty

The government has a lot of programs on how people from high poverty areas can able to improve their life. One of these is to study now and pays later programs, which offers allowances and tuition fees for them to get the right education and stop poverty. Aside from education, the number of available jobs in the city or state is also equally important because how can you be able to be employed if there are no available jobs right? Also, the person should also try to dream of something big.


  • Maropeng Klaas said on May 4, 2014
    Poverty is one of the biggest socio ecocomic issues if we don't find solution and possible ways to eradicate poverty I fear the worst for south africa because poverty is not only affecting the poor people but the other people as well poverty leads to increases in expenses such as petrol prize and health care facilities these expenses are increasing make my salary seem like its decreasing if we don't find a way to stop this major problem then south africa will sink to depths even Barack Obama can't believe already the rand is dropping like the titanic...Maropeng Klaas
  • kenzley said on January 28, 2015
    greeting to all. poverty wasnt naturally born into this world it was created by us humans. it is upto us as humans to help one another in lowering the poverty rate. we only have each other. if we work together as one we can demolish and extinguish poverty out of our country....naicker kenzley
  • mangi said on February 5, 2015
    We as people play with good opportunities then we say its poverty NOO!! Lets work hard to gain what we want
  • shamen said on May 24, 2015
    People mst go to school n b educated in order for em to find good jobs and to stop crime
  • nompumelelo vuyisile sibanda said on May 6, 2016
    people should work hard. Poverty is caused by people, without education, you are nothing, so the youth of tomorrow let us learn so that we can decrease poverty
  • Innocentia said on May 22, 2016
    Youth of today go to school and get educated so that in future we can get better jobs
  • khumalo thandeka said on August 31, 2016
    @innocentia i Love Your point as when youth go To school To study and when they are done some of them can Be entrepreneurs in their local community and employ People so To decrease poverty
  • otim rickon fred said on February 23, 2022
    someone to help me with the effects of poverty on entrepreneurship


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