6. Counterfeiting
The process of fraudulently manufacturing, altering, or distributing a product that is of lesser value than the original product. Losses are incurred by businesses of the
original product leading to an increase of prices.
Example of counterfeited goods: branded clothing, shoes and soccer jerseys from the English league.
The negative impact of counterfeiting on businesses

  • Due to the circulation of counterfeited products a decline in sales may be experienced by businesses.
  • Legal costs will increase businesses expenses if legal action is taken against those involved in illegal activities.
  •  Businesses may be forced to increase their prices to reduce the impact that illegal products may have.
  • Business profits will be reduced because of customers buying cheaper products.

7. Bootlegging

Bootlegging refers to unlawfully manufacturing fake goods for sale. It also refers to the recording of live or broadcast performances without the permission of the performers and copyright holders. Examples of bootlegging include fake Nike sneakers or fake Ray Ban sunglasses sold by vendors at the beach.


The negative impact of bootlegging on businesses

  • Businesses will be affected negatively due to loss of sales.
  • The business will sell fewer authentic products, which will lead to lower profits for the business.
  • Businesses expenditure may be increased due to legal costs if legal action needs to be implemented.

8. Strikes

A strike occurs when employees refuse to work, usually to petition a specific issue. A strike is usually the result of a dispute, such as employee grievances or the fear of being retrenched in the workplace. The most common reason workers usually go on strike are for higher wages or better working conditions. The trade union must give notice to the employer when planning a strike. There are different types of strikes, for example, go-slows and lockouts.


The negative impact of strikes on business

  • Strikes will result in production losses and reduction in sales.
  • Businesses may be forced to close operations after a strike.
  • Business may incur damages to their premises due to protests or
    protest action.


9. Political disturbances

Political disturbance occurs when groups of people voice their objection to show their disapproval of the handling of different situations in the country. People may protest because of the lack of service delivery in a specific area where they live and they may feel that government is not doing enough to solve, for example, the issue of unemployment in the country. Protests at universities about the slow rate of transformation and the exclusion of poor deserving students is an example of political disturbances that can occur

The negative impact of political disturbances on businesses

  • Businesses may not be able to operate at full capacity due to high numbers of absent staff.
  • Employees may not be able to travel to work due to protest action and this may result in lower productivity for the business.
  • Smaller businesses may be forced to close if roads are blocked.
  • Business may incur damages to their premises due to protests or protest action.

10. Violence

Violence may be defined as an extreme physical force exercised over someone to cause severe injury and grievous bodily harm or damage to property. Violence may be caused by misunderstandings and frustrations of people due to living in poverty. It poses a threat to individuals, businesses and communities because of injuries to people and damages to business premises that may occur. Individuals, families and communities will suffer from fear of attacks, for example, looting, xenophobic attacks, cash in transit heists and car hijackings. In order to protect their families, property and businesses, people respond to the threat of violence by taking extreme security measures. Violence may occur during or as a result of a strike action, a march or demonstration when some protesters become unruly and loot businesses.

The negative impact of violence on business

  • Violence has a negative effect on the workforce as it impacts on the safety
    and security of workers in the workplace.
  • The trauma that workers experience could result in a lack of productivity of
    the employee.
  • Employee absenteeism may increase due to illness like depression as a result
    of the trauma experienced.
  • The business will spend money on employees that require counselling.
  • This may become costly as security measures such as installing security gates
    and burglar alarms are expensive to install and maintain.


11. Crime

Crime is any prohibited activity that is punishable by law. Crime refers to the loss of goods due to theft, corruption, abuse, hijackings and burglaries. It can also refer to the loss of goods due to theft, corruption, abuse, hijackings and burglaries. High poverty levels lead to an increase in the crime rate.

The negative impact of crime on businesses

  • Staff productivity is reduced at work.
  • Employees may require counselling after the occurrence of an incident
    resulting in higher costs for the business.
  • Businesses located in crime hotspot areas will be poorly supported by
    customers resulting in decreased profits for the business.
Last modified: Saturday, 10 May 2025, 4:42 PM