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Cause Capitalism makes businesses thrive.

Cause Capitalism is the more compassionate form of capitalism businesses have been waiting for.

The effect of protests on businesses.

Residents in Kisumu were spotted stealing electronics, food, and beddings from supermarkets amidst the 2007 election violence. Scuffles affect businesses heavily. In such chaotic situations, people opt to steal what they have been longing for.

Protests lead to business losses.

The effects of political and civil unrest can make an entrepreneur’s worst nightmare a reality.
In South Africa videos circulating social media painted the grim picture of vandalized businesses during the peak of xenophobic attacks.

Small and medium enterprises suffer economic shocks. Well-established businesses may find a soft landing from insurance. All these leave a dent in the cash flow around the economy.

In Kenya, supermarkets such as Uchumi have slowly been recovering from the losses incurred during the Kenya election violence.

Do people Loot to cater to their needs?

According to a survey conducted by Forbes, 17% of employees steal because they cannot afford to buy the item. Similarly, in capitalist states, people opt to steal what they cannot afford. If an opportunity arises; they would steal.
When basic commodities are overpriced, a majority of people cannot afford to pay for goods and services.

Profit-oriented companies opt to package necessities in smaller portions to make more profits than sell quantified products at a reasonable price.

While nothing justifies looting, it is important to get to the root cause of it.
Economic inequality caused by capitalism brings about social crimes like looting and stealing.

How do you explain a country where the richest 10% of people earn an average of 23 times more than the poorest?

The wealthy in Kenya and developing nations accumulate income while their education and healthcare systems are in an extreme mess.

Economic inequality impacting businesses.

1. Insecurity

As the wealthy continue getting wealthier, emerging businesses struggle with insecurity as many people are unemployed.

Idle and educated youths are a country’s most dangerous population. They opt to steal to sustain themselves.
Recently, two IT students at JKUAT were allegedly caught hacking into a local bank’s system stealing KES 24.4 million.

Another incident was a bank -heist that saw one of Kenya’s most reputable banks lose KES 800,000.
All these are a result of insecurity.

2. Limited resources for aspiring entrepreneurs.

Well-established businesses have a competitive edge over small businesses. In economies with widened wealth gaps, it is easier for businesses with high revenues to kick out any form of competition.

Businesses will buy the competition and render people unemployed because of the free-market economic policy.

3. Unfair price wars in all factors of production.

A country with a few wealthy people and many low-income households hurts businesses. The purchasing power is influenced by those who can afford the goods and services.

Often, the wealthy end up with higher bargaining power.
This has adversely affected land rates in Nairobi. A 1-Acre plot for sale in areas like Kyuna, Nairobi goes for 120,000,000. A contrast to the minimum wage at KES 13,572.

Only the wealthy can afford these pieces of land.


How The Congo suffers from marginalization.

Capitalism has seen a rise in poverty rates globally. Countries like The Congo rich in natural resources are still classified as lower-middle-income economies. The Congo has 70% of the world’s coltan and more than 30% of the world’s diamond reserves, but how do its citizens benefit? The solution is Cause Capitalism.

Capitalist states continue taking advantage of economies like The Congo. They become unable to attain self-sufficiency and access to universal healthcare, higher education, and basic needs is still a challenge to the majority of the population.

While capitalism rewards effort, it deprives populations of access to necessities.
Capitalism with a cause shelters its citizens.

When capitalism is practiced with compassion and appreciation for humankind it becomes acceptable.
Cause Capitalism is a gentler and compassionate form of capitalism.

Steve Down, the proponent argues that businesses benefit more if the community they are within is thriving economically.

True to this, it is easier to open shop in a more receptive environment.

Profit-making businesses should incorporate a give back to the community in their business plans. Givebacks should be sustainable enough to ensure cash flow around the small economy.


Partnerships enhance Cause Capitalism

The homeless man hoovering around business premises for food can be trained on entrepreneurial skills. As a business owner, you will have to worry less about security.

Entrepreneurial skills can be making products from waste material.

Funds from for-profits can sustain non-profit organizations. Non-profits directly interact with communities. Partnerships can help sustain programs like the fight against FGM, teenage pregnancies, period poverty, and improving literacy levels.

Read more about: Cause Capitalism

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