Al-Marsad newspaper: Writer Fahd Al-Ahmari revealed the secret behind the closure of some shops, and the impact this had on individuals, society and the nation.
Shops
Al-Ahmari said in his article entitled “The Impact of Store Failure on Our Homes,” published in Al-Riyadh newspaper: Personally, I feel pain and sadness when I watch a store liquidate its accounts and close its store. It gives me a negative impression of the taste of failure, and on the other hand, I feel happy when I see a new project in the making. Construction or completion.
Laws and regulations
He continued: The situation is not individual, as there are many people whose souls are inclined towards achievements and achieving successes, even if they are for others. The question asked here: Why do some shops close their businesses and lay off their employees, and what is the economic impact of this on individuals, society and the nation? These reasons can be classified into three main types: economic reasons, technological transformations, and laws and regulations. Economically, an economic recession and declining demand can reduce revenues and make some stores unable to continue operating. In addition, the intense competitiveness makes some establishments unable to compete and forces them to close. But there is an important point in this aspect that some investors ignore, which is the feasibility study of the project in all its aspects, not just the success of the previous ones in the market. There is a study of market prices, labor and real estate costs, and legislative regulations, which may undergo updates that may affect revenues. In terms of technological transformations, the spread of online shopping and e-commerce is evident, thus negatively affecting traditional shops and forcing some of them to close. In addition, the development of technology may lead to changes in production and distribution methods, affecting some traditional business entities and making them unable to compete. In terms of laws and regulations, updating laws and legislative regulations may affect the ability of some shops to continue operating. These restrictions may include increases in costs or the application of certain laws relating to fees or emergency environmental requirements. In addition, a commercial establishment may have to close due to health and safety regulations imposed by some systems, especially in cases of health emergencies such as the spread of epidemic diseases, although our country – may God protect it – recorded an honorable position in the Corona pandemic in this aspect and others. The impact of closing shops on the economy of society and the nation can be large and multi-faceted. There is the loss of job opportunities and high unemployment rates, which are considered the worst negative effects and directly affect us and our sons and daughters.
Taxes and Fees
He continued: It may also lead to a decrease in government revenues from taxes and fees, and may also negatively affect the supply chain and suppliers related to those stores. Without a doubt, the failure of service commercial establishments in particular affects the country’s commercial reputation, especially when the closed establishment is international, which is reflected in It affects the decisions of international investors intending to enter the Saudi labor market in terms of their potential size or hesitation in investing locally, especially since there are commercial organizations and international economic bodies that monitor and follow up on news of global commercial establishments. To address this issue, several measures, policies and in-depth research studies can be taken to support this sector before the commercial establishment falters in order to avoid closure and avoid the associated negative impacts on the local, national and community economy as well.
2024-04-07 06:32:42
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