GDE BUSINESS STUDIES GRADE 10 NOTES
CHAPTER 8
BUSINESS STUDIES
GRADE 10
PAPER 1
TERM 2
CHAPTER 8 (PART 1)
CONTEMPORARY SOCIO-ECONOMIC ISSUES
REVISED NOTES
2024
TABLE OF CONTENTS
TOPICS PAGES
Examination guidelines 2
Concepts and their meaning 2
Reasons why socio-economic issues pose 3
a challenge to Businesses
Types of socio-economic issues 3-4
The meaning and impact of inequality and 4
poverty
The definition of inclusivity 4-5
The purpose of inclusivity in the workplace 4-5
Unemployment and unproductive labour 5
This chapter consists of 4 pages
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GDE BUSINESS STUDIES GRADE 10 NOTES
CHAPTER 8
CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT PURPOSES
Define/Elaborate on the meaning of socio-economic issues and the reason why they
pose a challenge to businesses.
Define/Elaborate on the meaning of inequality and poverty.
Explain/Discuss/Describe the impact of inequality and poverty on businesses.
Define the term “inclusivity” and explain the purpose of inclusivity in the workplace.
The meaning of the term unemployment.
The meaning of the term unproductive work force.
TERM/CONCEPTS DEFINITION/MEANING
Inequality refers to the difference in income levels and wealth between
groups of people.
Poverty defined as the lack of resources to meet basic human needs.
Inclusivity meaning all designated race groups should have access to the
same opportunities despite their colour, creed or gender.
Gambling: a risk that people take by taking a chance with money in the hope
to win money or a prize.
Counterfeiting/imitations the process of fraudulently manufacturing, altering, or distributing
a product that is of lesser value than the original product.
Bootlegging referred to as the illegal production of counterfeit goods for sale.
Piracy illegal copying of somebody’s product that affects businesses
operations.
Strikes a form of industrial action where workers refuse to work.
Political disturbances occurs when a group of people protest to show their disapproval
of the handling of a situation in the country.
Labour disputes: when the employer and employee disagree on important issues,
for example yearly salary or wage increases.
Go slows a form of industrial action where workers go to work but perform
their daily tasks very slowly, restricting the rate of production.
Lockouts when the business owners do not allow the workers to work and
prevent them from entering the workplace in order to prevent
damage.
Crime any illegal act or activity that is punishable by law.
1.1 The meaning of socio-economic issues
Socio-economic issues are aspects that have a negative effect on the individual,
communities and businesses.
These issues are societal and economic factors in the macro environment.
Socio-economic challenges are issues that affect people and the economy in a
negative way.
They are problems that come from social/people and economic/money
circumstances.
Some of the socio-economic issues that South Africans face include inequality,
poverty, inclusivity, HIV/AIDS, gambling, counterfeiting, bootlegging, strikes, political
disturbances and crime.
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1.2 Reason why socio-economic issues pose a challenge to businesses
Socio-economic issues affect consumer spending due to poverty and unemployment.
These issues place extra burdens and expenditure on businesses as they have to
develop policies/support systems/ informative programs to address them.
Businesses are expected to create as many job opportunities as possible to assist
government address these issues which places a financial burden on them.
They must also educate employees on social issues and how to become involved in
the community to address these social issues.
Businesses may not be well supported by customers because of their limited
disposable income.
Absenteeism of employees affected by HIV/AIDS will result in a decrease in
productivity of a business.
Counterfeiting, bootlegging and crime may lead to loss of profit for businesses.
Businesses may feel pressurised to offer corporate social responsibility projects in
disadvantaged communities. This in turn, could lead to increased business costs and
decreased profitability.
1.3 Types of socio-economic issues
Inequality and poverty
Inclusivity
Unemployment
HIV/Aids
Gambling
Piracy
Counterfeiting
Bootlegging
Strikes /political disturbance
Crime
2 Inequality and poverty
2.1 The meaning of inequality
Inequality arises when some individuals are more prosperous than others or are
given better opportunities than other individuals in society.
Some people have more money than others and can therefore access education,
basic health care and social services.
Inequality contributes to poverty in the country.
2.2 The meaning of poverty
Poverty is defined as the lack of resources to meet basic human needs.
People are not able to me their basic human needs when they become unemployed
or are retrenched. This leads to poverty in families and society.
Some people have a low level of education and limited skills. Therefore, they only
qualify for low paying jobs. Due to the high cost of living. These people cannot afford
to pay their bills and struggle to provide for all their basic needs.
Poverty often gives rise to crime.
2.3 The negative impact of inequality and poverty on businesses
People cannot participate fully in the economy.
Businesses spend more money on social responsibility programmes to address
inequality and poverty.
Poverty shrinks the market because people cannot afford to buy luxuries.
Poverty leads to crime such as shoplifting and robberies on businesses.
Increases violence as groups scramble for better status and social positions.
Businesses spend money on improving security due to robberies and shoplifting.
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More money is spent on relieving poverty through their social responsibility
programmes.
Inequality results in lack of skills and job opportunities.
Individuals and customers have less or no money to spend to buy basic goods and
services which will influence the profitability of businesses.
Poverty results in the continuation of the cycle of unemployment and homelessness
which can lead to an increase in crime affecting business negatively.
Some people do not have the financial means to buy goods as they have little to no
disposable income leading to limited profitability of the business as a result of limited
or no customer spending.
Limited customer spending means that businesses record lower sales figures.
Businesses may not grow because of reduced sales figures.
Businesses are pressurised by the media attention to poverty into investing in poor
communities.
3 Inclusivity
3.1 The meaning of inclusivity
Inclusivity means giving everyone opportunities without discriminating based on age,
race, gender, sexual orientation, disabilities/HIV status etc.
Inclusivity means valuing the differences between people and consciously
encouraging diversity in the workplace.
It aims to address imbalances such as businesses only employing male staff
members in management and top positions- a practice that was prevalent before the
onset of democracy.
3.2 The purpose of inclusivity in the workplace
Inclusivity enables businesses to make the best use of all human resources.
Promotes equal opportunity for every employee to obtain skills that will lead to
promotion and career path.
Promotes respect for each person and their contributions in the workplace.
Promotes healthy/happy working environments, which in turn increase job
satisfaction and productivity.
Increase tolerance of each other’s ideas and beliefs.
Increase communication in the workplace so that business goals/objectives are
achieved.
Businesses are able to use a variety of talents and skills.
Inclusivity increases education and training resulting to a decrease in poverty.
Increases the number of middle-class people participating in the economy.
The goal of inclusivity is to ensure that the business implements fair labour practices.
It seeks to redress the inequalities of the past.
Ensures that workplaces are created where people of different races, genders and
religions can work together to the benefit of the business.
Ensure that their workforce is representatives of the demographics of the country.
Try o ensure that the physical business setting makes provision for individuals with
disabilities.
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4. Unemployment
4.1 The meaning of unemployment
Unemployment is the condition where people want to work and are able to work, but
cannot find a job.
The state of job-seeking people in the economically active population who are able to
find work despite being willing and able to work
Unemployment often goes with a lack of skills or the wrong skills for the current job
market, but if the economy is not growing fast enough to absorb new job-seekers,
many skilled people will also struggle to find employment.
4.1.1 Possible solutions to unemployment
Improvement of skills, better education and training.
The government should change the labour laws to encourage small businesses to
employ workers
Businesses can provide skills development programmes through learnerships.
Offer bursaries to the community to improve the level of education.
Businesses must create jobs for members of the community.
Provide entrepreneurial programmes that can promote self-employment.
Support existing small businesses to create more employment opportunities.
4.2 Unproductive Labour Force
Unproductive work force refers to workers who do not work at the required level of
productivity for a business to be sustainable.
Workers produce less than they should.
4.2.1 Impact of unproductive workforce on businesses
There is always tension between the employers and employees because employees
are not performing below employers’ expectations.
Low profits for business and make it difficult to survive an economic recession.
Stress for both employees and employers.
Unproductive labour is a major stumbling block to economic growth and
sustainability.
It pushes up production costs and make way for cost-efficient foreign competition
who employ highly qualifies skilled and motivated people.
Could result in decreased employment opportunities if businesses switch over to
advanced technology to replace labourers.
