Socio-Economic Impact of A Business in The Community

ADVANCING LECTURE OUTLINE
SOCIO-ECONOMIC IMPACT OF A BUSINESS
“No man is an Island, entire of itself; every man is a piece of the Continent, a part of a main”-John Donne.
“ No one can do everything by themselves, no one is self-sufficient. We always rely on others in

some point of our lives. Nowadays, we are affected by so many forces. There are several factors to
consider when we are making a decision because it will not just affect us also the people around us. For
example, you’re about to make a decision in establishing a business, you will first consider your capital,
target market, location, competition, technology and so many others. Say, you have established your
business and you are making profit out of it, others will also benefit from it. The employees you hired, the
supplier you acquired your raw materials from, even the whole economy will be affected by your business
however small or big it is. ”
IMPACT ON THE CONSUMER

“ Consumers play a vital role; they are the one that pays for the goods and services produced.
They are the ultimate goal of every business. A new business that introduces new products and services
are most welcomed by the consumers because consumer preferences nowadays are rapidly changing
due to the advancement of the technology. ”
“ If you are in the business sector, one key that is needed almost every step of the way in running
the business is innovation. It’s very crucial for the business to cope up with the fast-paced development
of technology. The best is for owners to make numerous strategic and tactical decisions in the process
of identifying and satisfying customer needs. ”
“ There are many ways in penetrating the market, one way is making your brand a premium.
Improve the quality of your products and services that will attract the consumers to purchase them. But
nothing stays the same forever. The market place always changes and fluctuates so as consumer
preferences. Another way is to lower the introductory price than the substitute goods available in the
market. Then, slowly increase the price when the product or service have been well-established in the
market. ”
“ Introducing new product or service in the market makes the market competitive. A competitive
market is where there are numerous producers compete with another one to provide goods and services
to consumers. As long as the producers provide better goods and services, better quality products, and
more choices for consumers. But if one comes up with low quality and does not satisfy the consumers or
consumers cannot find the value of his money, then this will have negative impact on the market. ”
IMPACT ON SUPPLIERS AND INVESTORS

New competitor in the market provides opportunities for suppliers and investors. Say, a
businessman establishes a new business like a bakery or pastry shop, it opens a lot of opportunities for
suppliers of all the raw materials like, flour, sugar, butter and others, in order to produce the final product.
Many suppliers of different materials needed for production will have the opportunity to offer their products
and earn an income out of it.
“ Demand for goods and services provided by the suppliers will surge. All factors of production will
be affected, because no production is possible without incorporating all these factors. Suppliers will
require labor or manpower to convert raw materials into finished products to meet the demands for the
products. More capital is needed to invest for the machineries and equipment to be employed in the
production. Investors will get returns on their investments; additional capital employed will also have
additional returns. These investments will generate income for the economy. Consequently, will result to
”
economic growth.
IMPACT TO THE GOVERNMENT

The very existence of the government is a necessity not just for a certain group but for all of its
citizen. In taxation, there is so-called, the lifeblood theory which represents the theory of taxation, that
the government cannot continue without the means to defray the necessary expenses of the government.
“ Newly established businesses have an impact also to the government due to the fees on the permits or
licenses to operate and taxes imposed on the incomes of the businesses. Without taxes, the government
ceases to exist. ”
“ Before the commencement of the business operation, it has to meet all the requirements enforced
by the governing body. First, the business should apply for its trade name either in the Securities and
”
Exchange Commission (SEC), if partnership and corporation, or Department of Trade and Industry (DTI),
if sole proprietor. Second, permits must be obtained from the barangay, city or municipality and to the
Bureau of Internal Revenue (BIR) on the national level. All governing body requires certain amount to
“
pay as revenue for the licenses and permits. This money collected will add up to the local budget to
provide public safety, salaries for social and health workers, and subsidize public schools. ”
“ On the national level, government imposes various types of taxes, may be direct or indirect taxes.
Direct taxes are one type of taxes an individual pays directly to the imposing entity, such as income tax,
estate tax and donor’s tax. Whereas, indirect taxes defined as type of tax that can be passed on
”
individuals or entity, such as Value-Added Tax (VAT), excise tax and sales tax. These taxes are
“
considered as revenue of the government to defray the expenses of the government. These are to be
allocated and budgeted to finance its projects, to pay government officials, to build public schools and
infrastructure like bridges, roads and highways, to promote peace and order all over the country. ”
“ IMPACT ON HOUSEHOLDS ”
“ Newly established businesses will hire its manpower locally or in the society where it belonged.
This is because workers near the place of production improves the efficiency of the workers meaning
increase in the efficiency of workers will also mean increase in quality of products produced. New
businesses mean more employment opportunity for the society. ”
“ Small businesses established in the community has a massive impact not only to the society but
to the economy as a whole. Small businesses open a lot of opportunities. As opportunities increases in
the community the household income also increases. Household income is the aggregate gross income
of all the members of the household. It is also a determinant of the economic health of a certain area or
in comparison of living conditions among regions. In summary, the more businesses established in the
community, the more impact it has on every household within the community. ”
IMPACT ON THE COMMUNITY

“ Large corporations sometimes take pride in partnering with small businesses where they can
spread the wealth in the community. Small businesses are vital on community involvement, donating in
shelters, schools or organizations in the community. Small businesses help decision -makers in seeing
the important factors, certain issues and initiatives. The beauty of working in small businesses is that
they operate much like a family; when there are successes, everyone benefits.
“ It is expected of large companies even small businesses to engage corporate social responsibility.
Corporate Social Responsibility (CSR) is a way through large businesses returns the favor the community
has given to them, supporting their innovations and patronizing their products and services. It can bring
along a variety of competitive advantages such as enhanced access to markets, increased in sales and
profits, to sustain the customer loyalty, and to improve the image and reputation of the company. There
are different aspects the CSR touches, like education, health and livelihood. To cite an example, SM
provides scholarships for financially challenged students in college for them to pursue their formal
education. Also, SM conducting medical and dental missions around the country. They have mobile
clinics equipped with X-ray and ECG machines, with health professional volunteers for underprivileged
patients. Lastly, SM has given farmers technical skills and know-how training, with free seeds to start
them off.”
Corporate Social Responsibility (CSR) also provides safeguard for the environment. To ensure
the environmental responsibility businesses are finding a way to adopt processes, solutions and
instruments for their production to be environment-friendly. This is to reduce the effect of fast-evolving of
climate change.

Socio-Economic Impact of A Business in The Community

Uploaded by

Copyright:

Available Formats

Socio-Economic Impact of A Business in The Community

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Socio-Economic Impact of A Business in The Community

Uploaded by

Copyright:

Available Formats

ADVANCING LECTURE OUTLINE

SOCIO-ECONOMIC IMPACT OF A BUSINESS

“ No one can do everything by themselves, no one is self-sufficient. We always rely on others in

IMPACT ON THE CONSUMER

IMPACT ON SUPPLIERS AND INVESTORS

IMPACT TO THE GOVERNMENT

IMPACT ON THE COMMUNITY

You might also like