LESSON 10: Effects of the various socio-economic factors affecting

business and industry

EXPECTATIONS

This Supplementary Learning Material will help you to

1. Identify the effects of the various socio-economic factors affecting

business and industry
2. Explain the effects of the various socio-economic factors affecting
business and industry

PRETEST

Identification. Choose from the following words below.

٠Education ٠income ٠viability ٠occupation

٠socio-economic factors

These are characteristics that define the quality of life in a society.

1. It is the amount of money individuals earn from their daily economic

activities, be it employment, business or investments
2. It equips members of the society with the skills and knowledge
they require to be employed in different jobs and professions.
3. It refers to the type of jobs people perform by virtue of
their skills, experiences or choice.
4. ItI It is defined as the ability to survive which in business sense is
the financial performance and position.

LOOKING BACK

Direction: Identify the following by answering what is asked. Choose your

answer inside the box. Write your answer in your quiz notebook.

Strengths Opportunities Legal Political Threats SWOT

 Social Supplier’s Power Internal Rivalry Weaknesses

Threats of substitution Economic Threats of entry Buyer’sPower

Technological Environmental Porter’s Five Forces PESTEL

1. Using this industry analysis, competition in a certain market is

measured?

2. Government changes is what type of factor from PESTEL industry

analysis?

3-4. On SWOT analysis, which factors are considered as the external factors
that affect a business?

5-6. On SWOT analysis, which factors are considered as the Internal factors
that affect a business?

7. This refers to the competition that exists among businesses in a certain

Industry.

8. When there is a conflict in the area, what factor will this be under
PESTEL?

9. When there is a unhygienic practices made by a business, what factor

will

this be under PESTEL?

10. Potential entrants to an industry are what kind of competitive factor

under porter’s five forces?

BRIEF INTRODUCTION

Social and Economic Factors

Social and economic factors, such as income, education, employment,
community safety, and social supports can significantly affect how well and
how long we live. These factors affect our ability to make healthy choices, afford
medical care and housing, manage stress, and more.
The social and economic opportunities we have, such as good schools,
stable jobs, and strong social networks are foundational to achieving long and
healthy lives. For example, employment provides income that shapes choices
about housing, education, child care, food, medical care, and more. In
contrast, unemployment limits these choices and the ability to accumulate
savings and assets that can help cushion in times of economic distress.
Social and economic factors are not commonly considered when it comes
to health, yet strategies to improve these factors can have an even greater
impact on health over time than those traditionally associated with health
improvement, such as strategies to improve health behaviors.
Across the nation, there are meaningful differences in social and
economic opportunities for residents in communities that have been cut off
from investments or have experienced discrimination. These gaps
disproportionately affect people of color – especially children and youth.
In the Social & Economic Factors:
Education, showing who in a community has graduated high school or
attended some college in addition to the percentage of teens and young adults
ages 16-19 who are neither working nor in school.
Employment, detailing unemployment statistics.
Income, looking at children in poverty and income inequality.
Family & Social Support, providing information on children in single-parent
households and access to social opportunities.
Community Safety, measuring violent crime and injury deaths.
Socioeconomic Factors are characteristics that define the quality of life in
a society. They influence the behaviors, attitudes, trends, taste and lifestyles of
individuals. In fact the different class segments of the society- that is, upper
class, middle class and lower class-are attribute to the socioeconomic factors.
Income is the amount of money individuals earn from their daily economic
activities, be it employment, business or investments.
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.
Occupation refers to the type of jobs people perform by virtue of their
skills, experiences or choice. You may be self-employed or work as an employee
of an individual or organizational entity.
The different types of occupation dedicate the income earned by people in the
society. And they are: High-salaried individuals, and Self- employed
individuals.

OTHER FACTORS:

 Economic conditions
 Social environment
  Government
 Economic changes
 Political changes
 Changes in technology
 Environmental factors

Business Viability and Its Effect to the Community

“The goal of community sustainability is to establish local economics that are

economically viable, environmentally sound and socially responsible.”

Viability is defined as the ability to survive which in business sense is the

financial performance and position.

A viable business has great effect to the community. Some of these are

 It provides a community jobs in the business sector.

 It produces taxable income for the community.
 Government continuously makes Improvement in community
infrastructure.
 It contributes more opportunities for the people in terms of services.
 It helps in the establishments.
 It leads to improved business sevices to community.
 It improves community life.

Recommendations in Maximizing Positive Impact to Community

1. Divert a proportion of revenues to a good and worthy cause for
community development and outreach programs.
2. Find creative ways to improve the life of firms' employees and
community.
3. Establishments of linkage between business and community.
4. Establishment of scholarship grants.
5. Help build customer attraction, satisfaction and loyalty.
6. Reduce risks of negative publicity, boycotts, and a tarnished public
image.
7. Improve product image, brand name and reputation.
Minimizing the Negative Impact on Business
1. - Identify the problem and correct it at an operational or product
development level.
2. Follow Up, Speak Up, Engage
 3. Engaging the aggrieved customer with a timely, relevant, and contextual
response that seeks to provide the individual with both an explanation
and a resolution.
4. Taking into account both spoken and unspoken concerns of the user
who provided the feedback.
Let Time Runs Its Course
Relying on the rules of recency and encourage new customers who have
experienced outstanding service or received superior products to provide their
feedback.

ACTIVITIES

ACTIVITY 10.1 – Research on-line how SM impact in our community. Write

your findings in a clean bondpaper.

( https://www.sm-foundation.org/sustainability)

ACTIVITY 10.2 – Answer the following questions by telling something within

your community about the effects socio-economic factors stated which affects
business and industry?

1. Poverty is a socio-economic issue. Socio-economic issues are factors

that have negative influence on an individuals' economic activity
including: lack of education, cultural and religious discrimination,
overpopulation, unemployment and corruption. How does poverty affects
business and industry?

2. – How does occupation affects business and industry?

ACTIVITY 10.3
 1. Compare economic changes and
technology changes. How do these factors similarly affects business and
industry in the same way or other way? Explain.

ACTIVITY 10.4

1. Population is one of the factors affecting business and industry. How

does the following contribute to business consideration?

A. age-

B. race -

C. sex
 REMEMBER

Socio- economic Factors

1. Demographics 4.Economics
2. Public Resources 5. Infrastructure
3. Land Use 6. Relocations

CHECKING YOUR UNDERSTANDING

Using on-line Research:
Prepare a summarized report on how this businesses impact our community.
1. Shell corporation
2. San Miguel corp.
3. Coca-cola
4. MERALCO
5. Maynilad

POST TEST

I. Write in proper column the Socio-economic factors referred to:

٠Exchange rates ٠Employment law ٠buying habits ٠Taxes

٠Bureaucracy ٠Corruption level ٠Freedom of the press

٠Tariffs ٠ Trade control ٠wealth ٠family size and structure

٠Education Law ٠Inflation ٠Anti-trust law

٠religion ٠ Recession ٠ Zoning laws ٠ education level

 ٠Employment laws ٠Demand / Supply ٠Interest rates

SOCIAL ECONOMIC LEGAL GOVERMENT

Answer the following:

1. Explain the Socio-economic Factors Affecting Small Businesses.

REFERENCES

Dinio, Rosemary P. & Villasis, George A. 2016. Applied Economics

Sampaloc,Manila. Rex Book Store Inc.

Leano, Roman D. Jr., 2016. Applied Economics for Senior High School

Intramuros Manila. Mindshapers Co., Inc.