This document discusses the socioeconomic impacts of business on communities. It defines socioeconomic factors as characteristics that define quality of life in a society and influence individual behaviors. Key socioeconomic factors that affect business include income, education, and occupation. Higher incomes allow more consumer spending, while education equips the workforce and affects income levels. Occupation determines earning levels. Other factors influencing business are economic conditions, social trends, government policies, economic changes, political shifts, and technological advances. Learners will evaluate how these factors impact business viability and communities.
This document discusses the socioeconomic impacts of business on communities. It defines socioeconomic factors as characteristics that define quality of life in a society and influence individual behaviors. Key socioeconomic factors that affect business include income, education, and occupation. Higher incomes allow more consumer spending, while education equips the workforce and affects income levels. Occupation determines earning levels. Other factors influencing business are economic conditions, social trends, government policies, economic changes, political shifts, and technological advances. Learners will evaluate how these factors impact business viability and communities.
This document discusses the socioeconomic impacts of business on communities. It defines socioeconomic factors as characteristics that define quality of life in a society and influence individual behaviors. Key socioeconomic factors that affect business include income, education, and occupation. Higher incomes allow more consumer spending, while education equips the workforce and affects income levels. Occupation determines earning levels. Other factors influencing business are economic conditions, social trends, government policies, economic changes, political shifts, and technological advances. Learners will evaluate how these factors impact business viability and communities.
This document discusses the socioeconomic impacts of business on communities. It defines socioeconomic factors as characteristics that define quality of life in a society and influence individual behaviors. Key socioeconomic factors that affect business include income, education, and occupation. Higher incomes allow more consumer spending, while education equips the workforce and affects income levels. Occupation determines earning levels. Other factors influencing business are economic conditions, social trends, government policies, economic changes, political shifts, and technological advances. Learners will evaluate how these factors impact business viability and communities.
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MODULE 5 - FOURTH QUARTER TOPIC: VIABILITY AND IMPACTS OF BUSINESS
APPLIED ECONOMICS ON THE COMMUNITY
OVERVIEW:
Business plays a huge role in the society. It not only takes up the most amount of time in people lives but it also helps create innovations and make important technological advancements. It makes forward thinkers and dreamers turn visions into reality. Making people lives easier. Only when companies are profitable can they contribute effectively to society by creating jobs and economic development. It cannot be assumed that companies adopt a responsible business conduct. However, corporate social responsibility can contribute to the success of business and betterment of society. As you go through the lesson you will learn how business affects society. In turn, evaluate business viability and its effect on the community. CONTENT STANDARD: Demonstrates understanding of … various socioeconomic impacts of business on the following sectors: consumer, supplier and investors, government, households, and international trade. PERFORMANCE STANDARD: Learners should be able… conduct a socioeconomic impact study on consumers (new product and services); suppliers; investors (capital, income) government (tax revenues, poverty alleviation, basic services); households (standard of living, employment) and international trade (exports and imports of goods and services) leading to options in venturing into a business. LEARNING COMPETENCY: identify and explain the effects of the various socio-economic factors affecting business and industry. Various Socio-economic Factors CONTENT: Affecting Business and Industry
Socioeconomic Factors Affecting Business and Industry
Socioeconomic factors are characteristics that define the quality of life in a society. They influence the behaviours, attitudes, trends, tastes and lifestyles of individuals. In fact, the different class segments of the society – that is, upper class, middle class, lower class, - are attributable to the socioeconomic factors. Education, income and occupation are the main parameters of socioeconomic status, according to the American Psychological Association. Income Income is the amount of money individuals earn from their daily economic activities, be it employment, business or investments. The availability of disposable income (net income after tax) influences spending habits. Your customers are likely to purchase expensive or luxurious items whenever there is an increase in their disposable incomes. However, when income is scarce, customers tend to restrict their spending to essential items. Education Education equips members of the society with the skills and knowledge they require to be employed in different jobs and professions. The standards of education in your society depend on the availability and accessibility of educational amenities. A society that has a well– educated population flourishes because individuals are employable in well–paying jobs. Education further determines the availability of skilled workforce when seeking employees for your small business. Occupation Occupation refers to the type of jobs people perform by virtue of their skills, experiences or choices. You may be self–employed or work as an employee of an individual or organizational entity. The different types of occupation dictate the income earned by people in the society. High salaried individuals are normally associated with skilled occupations such as, doctors, engineers, lawyers and accountants. Self – employed individuals owning successful businesses also generate huge amounts of income. Unskilled occupations such as menial labor does not pay much. Therefore, the ability of customers to afford the different products you offer in your business depends on types of their occupation. Other Factors Affecting Business and Industry Aside from the different factors mentioned above here under are other factors affecting businesses and industry. 1. Economic Conditions- Before creating business plans or when evaluating existing ones, it is important to ‘scan’ the external environment. Is the environment conductive to business you are going to establish or there are some problems to be encountered in the future? 2. Social Environment- Social factors relate to pattern of behavior, tastes, and lifestyles. A major component of this is a change in consumer behavior resulting from changes in fashions and styles. The age structure of the population also alters over time (currently we have an ageing population). An understanding of social change gives business a better feel for the future market situation. 3. Government- This is continually updating laws in a wide range of areas, such as consumer protection legislation, environmental legislation, health and safety and employment law, etc. businesses need to take a proactive approach and be ahead of these changes, rather than hurriedly making alterations to products and processes in a reactive way. 4. Economic Changes- These are closely related to social ones. The economy goes through a series of fluctuations associated with general booms and slumps in economic activity. In a boom nearly changes that affect business include changes in the interest rate, wage rates, and the rate of inflation (i.e general level of increase in prices). Businesses will be more encouraged to expand and take risks when economic conditions are right, e.g. low interest rates and rising demand. 5. Political Changes- These relate to changes in government influence. In recent years these changes have been particularly significant because as members of the European Union we have to adopt directives and regulations created by the EU which then become part of the UK law. Political changes are closely tied up with legal changes. 6. Changes in technology- These have also become particularly significant in the post – millennium world. This is particularly true in terms of modern communication technologies. The creation of databases and electronic communications have enabled
