There are also various economic problems in the business world, these problems arise when there is an unlimited need for society. So that unmet needs can cause a problem and lead to limited resources.
Economic problems in the business world will continue to grow over the years, which is why the problems that arise will become modern economic problems.
In minimizing the economic problems of a business, you can also understand economic principles .
10 Economic Problems in Business
For those of you who want to know more clearly and in detail about economic problems in the business world. So this article will explain 10 economic problems that generally occur in a business:
1. Weaknesses of Competitiveness in Buyers
Carrying out the economy in business , you will often find economic problems that often occur to every business owner, companies that are not able to compete with other companies will have an impact on business competition, so that the attractiveness of buyers results in a product in a business decreasing.
This is especially true for company competitors who are outside the country, with the similarity of products that will make buyers compare the advantages of a product, the buyers will be more dominant in buying products abroad.
2. Low Purchasing Power on Inflation
A price increase in inflation in the purchasing power of a product does not develop, this actually makes the purchasing power decrease in society bigger and results in greater production costs, the number of products accumulates and makes business people suffer losses.
In inflation, the economic growth of a country cannot develop, inflation is carried out so that the economic growth system will further develop when prices rise and the circulation of money will be even greater.
3. Quality in Unstable Economic Growth
Economic problems that often occur and have an impact on a country, especially Indonesia, are very difficult to maintain the quality of economic growth because the poverty rate is relatively high, unemployment is still above average, even social inequality is far from expected and other problems.
For this, in terms of economic problems in business, one of the causes of the quality of economic growth in a country, especially Indonesia, the lack of purchasing power and product quality in a business that is needed by the public at a price that is not affordable for income will make its economic growth from medium to advanced cannot be resolved and it does not go well.
4. Unemployment, and Poverty at the Highest Position
The economic problems in the fourth stage that occur in various countries, especially Indonesia, are poverty and unemployment which are quite high in affecting the increase in the results of a business, the cause is because poverty and unemployment will become a product constraint that cannot be bought. can rotate in producing the product.
The level of poverty and unemployment has become a determinant of people’s purchasing power in the market which is very low, so that the income of a business becomes low and the economy of a country does not increase. As a result, developing companies will go bankrupt and cause a country to become a monetary crisis.
5. Export and Import Economic Problems
The economic problem of a business in the import sector in an industrial company can be said to be a traditional economic system that affects a business in the livestock and agriculture sector in Indonesia, an import is quite high in importing the community’s raw material needs.
As a result, economic growth has decreased and imports have increased. Unfortunately, the availability of products to meet people’s needs is not fulfilled so that people prefer to import their needs.
Even the limitations of exports in a country, especially Indonesia, cannot reach economic growth, so that domestic products that do not comply with the quality standards of raw materials cannot meet the needs of the community even though these raw materials cannot be distributed abroad, which leads to unpredictable economic growth. felt by a country.
6. Inflation Happened Consecutively
Economic problems that occur in inflation must be immediately resolved and solutions sought, because this will have a greater impact on economic growth, even in a country there will be an event of inflation. Inflation that should benefit a country is on the contrary detrimental to society because of an increase in the price of a product in business.
In this case, when inflation affects all prices, it will cause these prices to rise, even all the products needed by the community also go up, but in this incident the people’s income is not supported by high incomes and the products cannot be bought and even pile up in companies in warehouses.
If consecutive inflation occurs and there is no change, it will result in weak market demand and the economy to decline. Unless otherwise, if inflation occurs but people’s income increases, it could be that people’s purchasing power will increase.
7. Low Tax Capability and Increased Debt Ratio
Economic problems that occur in a society are taxes, taxes are levies on the community and a company in establishing their business. However, when the community and business owners do not regularly fulfill a country’s obligations, especially taxes, a country’s income through taxes will be low because a country, especially Indonesia, is in the infrastructure development stage.
As infrastructure development continues, spending on infrastructure will also continue to increase. So, the government chooses one way to borrow from abroad in fulfilling the development of a country. In fact, this adds to the debt ratio in a country and income from tax collection is not fulfilled in covering the state debt.
8. Bad Credit in Banking
Modern economic problems in business, which often occur in the current era, are that technology is increasingly sophisticated, transactions that often occur in cash or in cash can be carried out by all people. Financial needs among the community also continue to increase, this is actually very much needed by business owners to meet all their business needs and to invest in other companies in expanding their business.
However, what if the demand for credit increases, this results in new problems for the bank because the creditor is unable to pay according to the payment terms date, the income at the bank stops and the bank becomes difficult to process public creditors’ applications.
9. Providing Jobs
With the increasing number of jobs and employees in a company, there is an increase in production which has the effect of increasing a country’s income. With this policy, it will benefit business owners in getting investors to increase company capital.
10. Exchange Rate Crisis
Exchange rates are a complex topic, but they should clearly apply to those business people who deal with exports or imports. Changing exchange rates may affect how much a company has to pay to its international suppliers, which can affect profit margins, as well as take up a lot of resources and reduce the income generated by business people.
This economic problem really affects the community, especially business people or entrepreneurs, in doing their best to find more profit, which is one way for business owners to have a large income, so that the expenses they make are not really felt.
If the income of business people increases and people’s consumption also increases, this will certainly help the country measure the extent of the economy in a country by measuring the country’s economic growth.
However, what about the conditions when a country is in inflation or is experiencing difficulties with certain conditions resulting in a decrease in people’s purchasing power so that it is not based on a certain time in a country.
To reduce economic problems in business, you don’t need to worry, you can start with planned bookkeeping in a transparent manner and can at any time find out the income you get along with your income and expenses.
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