How External Factors Are Negatively Impacting Businesses Essay

How External Factors Are Negatively Impacting Businesses Essay

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Research paper topic:
How External Factors Are Negatively Impacting Businesses

Argumentative paragraph one
Economic recessions are a decline in the economy, that contrarily impact on all businesses, especially the small ones. They affect firms by causing: a loss of income, Sales to decrease, Bankruptcy rates and loan fees to rise. As a result, recessions can be catastrophic; Kavoussi (2012) stated that ‘More than 170,000 small businesses in the U.S. closed between 2008 and 2010, according to analysis by the Business Journals of U.S. Census Bureau data.’ Evidently, her announcement is a precise case of the negative impacts resulting from economic downturns. However, those restricted to recognising that recessions are a risk, contend that economic recessions have positive impacts on Businesses, because: they give a balance to the economic development, remove excess and educate entrepreneurs on enhanced planning. However, Economic recession can be so cataclysmic that businesses may not get the opportunity to witness the positive side of the occasion. Consequently, even during the relief/post-relief of the business cycle, more Businesses come up short when the economy is moving forward. Bailey (2015) specified that ‘Data from previous recessions show the rate of business failure is higher as the economy recovers than at the height of a recession.’ Bailey (2015) statement not only disapproves their cases, but also reinforces my contentions, as both the economic recession and the relief have negative impacts on all businesses.
Argumentative paragraph two

Competition is an immense part of businesses that negatively affect...

... middle of paper ...

... expense of businesses, influence its conduct and add to the loss of customers. Campbell (2012) stated that if tax rates continue to increase ‘business owners plan to deal with it by passing the added costs on to their customers.’ Revealing that tax laws are already influencing businesses. Similarly, the pollution reduction law also has negative influences. Because of it, businesses that produce pollution are required to pay emission credits, in order to lawfully deliver a specific measure of pollution, also causing a profit loss for firms. Furthermore, Laws on Interest and the minimum wages policies are changing too. In Australia the minimum wage has increased to 2.4% which is $17.70 per hour and in addition interest rates are also raising. Consequently, if government laws affecting organisations continues to deteriorate the success rate of businesses will decrease.

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