In today’s fast-paced free market, numerous massive supermarkets are overtaking the local small businesses causing them to withdraw from the fierce competition. As a result, many advocates argue that the closure of infant firms will trigger challenges to the local communities. From my perspective, I personally believe that this ongoing situation is highly likely to bring difficulties to the community.
First of all, rapid expansion of supermarket chains not only pushes out the small businesses but also negatively impacts countless workers and employees behind them. Many workers will lose jobs and become unemployed in the long-run. They are unable to secure new jobs in such a short period of time, causing them to become involuntary victims of economical and sociatel pressures. If this problem further intesifies, nation-wide unemployment might arise which increases the vulnerability of poverty and outdated skills over time. In addition, trade unions and protests might frequently appear in some countries. Therefore, these so-called advanced developments have unforeseen consequences for the labour force and community.
Moreover, innovative but uncompetitive companies will also be significantly affected as a result of limited opportunities. For instance, they may have the potential to sustainably develop in the long-run which in turn have positive externalities for the general population. Even so, they will still gradually leave the national market because of the emerging profit incentivized and maximizing firms. As a result, once possible opportunities vanish due to the big market shares of companies.
In conclusion, the growth of those supermarkets and businesses have a long-lasting effect on the local communities and society. Therefore, those negative externalities must be internalized and more attention should be paid to the unexpected consequences.