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.
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