With etymological origin in the Latin word impactus, impact it is a concept that refers to a knock , either physical or symbolic. The economic , for its part, is that linked to the economy : science focused on the analysis of the distribution of resources for the satisfaction of the material needs of the human being.
The idea of economic impact , in this context, refers to effect that a measure, an action or an announcement generate in the economy . When something has an economic impact, it causes consequences in the economic situation of a person, a community, a region, a country or the world.
Suppose a government announce a massive increase in taxes and public service fees . This decision has an economic impact on the population since people must allocate a greater percentage of their income to fulfill their obligations to the State and to cover their basic needs. This, in turn, will make them have less money available for other expenses: that is, they will hire less services and buy less products. The economic activity of the nation, in this way, will suffer a contraction. In short, the economic impact of the government announcement is evident.
On the other hand, if one company multinational informs that it will conduct a millionaire investment In a small town to open an industrial plant and generate 3,000 jobs, this decision will have a huge economic impact on the town. The inhabitants will benefit from the productive activity and the movement of money that will be generated with the inauguration.
With all this we can deduce that any company that achieves its objectives has an economic impact, to a greater or lesser extent. While this concept is usually associated with large successes or failures, we must not forget that a mere effect on someone's economy is already enough to show their presence.
To graph the above, let's think about the following hypothetical situation: a person decides to undertake on his own the developing of a computer application with the objective of marketing it; Its launch is a success and therefore decides to move forward with new projects, but this time with the collaboration of another expert. The economic impact of this small project, therefore, reached the life of the other professional, as it provided him with the opportunity to get a job.
The opposite case also generates an economic impact, even if it is negative: it is not necessary to think about the bankruptcy of a large company of international presence to exemplify this phenomenon, since it is enough that an activity or a decision generate an effect on the economy of an individual.
Precisely for this reason it is so important to evaluate the potential economic impact of a project before launching it. This concept is related to that of Social impact , which is the consequence that produces a given action in a community. Although the planes in which they directly impact each of them are different, they are closely linked: a dismissal causes the absence of economic income and often also the loss of self-confidence.
The domino effect that a movement in business can have is really dangerous. During the planning process, therefore, we must ask ourselves questions about consequences positive and negative we can cause in each individual, in the community and, depending on the size of the company, nationally or internationally. Will we generate new jobs? Will we attempt against the continuity of another company? Do we have enough capital to face the first stage of the business?