The relocation of enterprises to the suburbs has been promoted by many governments due to the rising issues of transportation and housing in central places. From my perspective, the benefits of this practice surpass its drawbacks.
On the one hand, the alteration of enterprises’ places would exert negative effects on their interests relating to the unavailability of resources and potential customers. Chief among these is that infrastructure and human resources are not immediately accessible in the suburbs. For example, major banks would suffer from inadequacies of well-trained employees because they are out of reach for high-quality graduates from many universities. Not to mention that enterprises moving to the outskirts would impede their businesses as profits cannot be generated easily. For example, the failure in attracting customers of high-end clothes stores results in their lower revenues, which negatively impacts the businesses’ survival in the market.
On the other hand, the moving of businesses to the countryside plays a pivotal role in reducing the number of over-crowding related issues in the cities and employment problems in the countryside. Concerning the former advantage, the change in companies’ operation place requires their workers to move from the center to the outskirts, which would significantly decrease the amount of transportation and population in the central areas. Therefore, congestion and rising housing prices would be less problematic, thereby enhancing city citizens’ living standards. In addition, businesses moving to rural areas creates more job opportunities for workers who live in those places. By joining the workforce, those individuals can generate more gains, which is paramount in lessening income inequality between rural and urban citizens.
In conclusion, the governmental encouragement of altering companies’ places of business may cause difficulties for businesses due to their inaccessibility of resources and lower chances of stimulating profits. Nevertheless, such a practice is deemed more advantageous in terms of its potential in diminishing the adverse effects of rising transportation and accommodation costs.