CHAPTER 4

Socioeconomic Impact Study

 Socio-economics: Definition

Socio-economics (also known as social economics) is the social science

that studies how economic activity affects and is shaped by social
processes. In general it analyzes how modern societies progress,
stagnate, or regress because of their local or regional economy, or the
global economy. Societies are divided into three groups: social, cultural
and economic. It also refers to the ways that social and economic factors
influence the environment.
 Introduction

Business activities affect all inter-connected sectors of the economy. A business-

to-business (B2B) relationship between the supplier and business is possible if
there is a sufficient supply of raw material and there is a product or service being
produced. In this situation, there is a business impact with both parties that
involved, and need to assess if this is good (positive) or bad (negative). A certain
business should be guided by this principle “you cannot strategize without
assessing first”. With that, there is a need to adopt an assessment tool that evaluates
and later formulates solutions.
There are many tools being used in the assessment of impact, and these tools
are important not only to businesses but also to stakeholders, those people
who are affected by the decision of business owners or stockholders.

• A SEAT (Socio-Economic Assessment Tool) is one of the emerging

methods that could cover the aspect of the economic sector being
affected by the business operating within an economy or a certain place
of business. The objective of the tool is; to provide guidance on
consultation techniques that are appropriate for use in the SEAT
process, and to provide guidance on the ‘line of logic’ to follow when
exploring potential issues and impacts.
The Business and Economic Sectors
Having those significant economic sectors that are connected,
and may influence another and being influenced by one of
other economic sector. Disregarding one part of the sector
might disrupt the beauty of the star, that represent an economy
need to maintain and develop by minimizing negative impact
and maximizing its positive impact. The business operating
within the borders of the country does not only affect local
economy it can deal with international trade, that magnet
foreign investors. As we go along this lesson it can direct you
to explore much more with the different impacts of the
business.
 IMPACT ON THE CONSUMER

Let us first look after some of the positive impacts of the business to consumer. It
brings new product or services available for the consumer whatever their reason
such as its price, usefulness or it may be a substitute. The business impact that
focus on consumer’s benefits from the products or services. In the negative impact
of the business to consumer, when the product or services does not meet the
expectation of the buyer, due to sub-standard material being use as raw material.
This situation may trigger consumer to look for something new resulting to the
business to innovate their product through enhancing its features. This strategy will
give a new choice for consumer that will keep them ahead of the competition.
 IMPACT ON THE SUPPLIERS AND
INVESTORS

Suppliers and investors can have an opportunity, once there is a new business. Like
in the instance of establishing a new resort or hotel in a certain locality, it will serve
as opportunity for the other business to supply such as food ingredients, beverages,
laundry shop and photographers. A negative impact arises when the new business
does not priorities the supply that is available in the community. Instead it acquires
raw material from another area, since the local supplier cannot meet the volume of
order. A possible strategy of a local supplier is to increase their production in able
to meet the business raw material requirement