In the recent years change has led to radical consequence in all parts of commerce, industry and the public service such as:
- Increased Complexity of Production Methods: Changes in technology, market demands, and regulations can lead to increased complexity in production methods. Businesses may need to invest in new equipment, retrain employees, or adopt new processes, which can initially disrupt operations and require additional resources.
- Job Changes and Unemployment: Changes in business practices and technology can lead to job changes or even job losses as certain roles become obsolete or require different skills. This can result in unemployment for workers who are unable to adapt or acquire the necessary skills for new positions.
- Cost of Acquiring New Skills: Business changes often require employees to acquire new skills or undergo training. This can increase the cost of hiring and developing talent as businesses invest in upskilling their workforce to meet changing demands.
- Geographical Displacement and Unemployment: Changes in the geographic location of industries or shifts in market demand can lead to unemployment in specific regions or industries. Workers may find it challenging to secure new employment opportunities due to the mismatch between their skills and the available job opportunities.
- Increased Input Change and Profit Margin Pressure: Changes in inputs, such as raw materials or energy costs, can impact a business’s profitability. Fluctuating input prices or changes in supplier availability can reduce profit margins and put pressure on businesses to find cost-effective alternatives or adjust pricing strategies.
- Stiff Competition and Business Failures: Changes in the business environment can result in increased competition as companies adapt to new market conditions or technological advancements. This intensified competition can lead to market consolidation, with stronger companies outperforming and potentially causing the closure of less competitive businesses.
- Increased prices of goods and services that entrepreneurs produce. This is due to the need to acquire quality raw materials at a high cost affecting the profitability.
- Over dependence on a single supplier for inputs