How does Poverty Affect the Business

Poverty is one of the world's leading problems, 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 affect the business? This question will be answered in this article, so read on.

poverty affect the business

What is Poverty?

The explosion of the population is one of the factors why poverty increases. Unfortunately, a child born with unemployed parents with a chaotic life is more likely to 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 prohibited drugs and commit crimes like burglary. Now, this is how poverty affects business. As you know, the main target of these impoverished people is to steal items or money from these businesses or establishments to have the means to buy food and other necessities for their loved ones or even their vices.

Poverty and Crime

Poverty and crime are somewhat connected. This is because many people are being pushed to commit crimes to escape poverty. Being extremely poor is not easy because you don't know where to get money to buy food and other needs, especially if you have many children. Crimes like robbery and even murder, in some cases, are widespread, especially in suburban communities wherein there are a lot of uneducated and unemployed individuals.

The Affect of Poverty on Business

Any type of crime due to poverty significantly impacts the business. The first is the loss of revenue or income, especially if the business's profit has been robbed. Even though you can recover it by doubling your effort and sales, losing revenue is still challenging. If the property or the establishment itself has been burned or damaged due to crimes like arson, it is not easy to assemble things again. It will take months to years until you recover from your loss. In some cases, businesses may become bankrupt, primarily if crimes have caused them extreme damage to property, revenue, and capital.

Solving the Problem of Poverty

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