The impact and challenges of unemployment on business operation

Whatever one's political views, uncertainty and the return to a much more nationalist politics in many countries have displaced the assumption of steady global integration. Many commentators have declared that globalisation has already peaked, despite its role in the past year run of unprecedented successes worldwide in health, wealth, education and life expectancy.

The impact and challenges of unemployment on business operation

These case studies occurred betweenin the aftermath of the passage of SOX. In each case, the owner-operator developed a profitable specialty niche model that had scalability i. In each of these situations SOX proved to be costly, burdensome, time consuming and distracting.

The additional layer of costs and burdens in terms of time and implementation had the effect of diverting financial and intellectual capital away from innovation and product development and redirected toward compliance in the context of a very risk-averse internal environment. The resulting financial outcomes in relation to both the explicit and implicit costs associated with SOX compliance are self-evident.

The impact and challenges of unemployment on business operation

However, it should be noted that not all of these had unsatisfactory outcomes. One instance proved to be very satisfactory, but nevertheless was influenced by the preoccupation with the danger and risk of making the slightest mistake that potentially could undermine years of work.

As such, VCS identified three mass markets, each aligned with its specific vision care solution: VCS developed a prototype product for each of the aforementioned mass markets, lined up future engineering, technical, sales and support staff and a proposed manufacturing site.

Given the very large target markets, VCS sought equity financing via the public markets. In this instance microbrewers essentially used the Internet as well as financial literature attached to its product shipments to solicit equity capital.

The impact and challenges of unemployment on business operation

However, by the time VCS was ready to embark on its capital raising efforts, the passage of Sarbanes-Oxley SOX created a whole new set of compliance protocols and filing of additional paperwork.

VCS diverted a portion of its limited capital to hiring attorneys and accountants to aid in compliance, but the financial cost associated with this process even with self-help services proved to be above plan.

Moreover, the additional 3 to 6 month period required to comply with new SOX standards proved very costly with a negative collateral development: These individuals could no longer afford to wait for a capital infusion, and thus sought employment elsewhere.

In a last ditch effort to sustain momentum, VCS sought grant funding from public and private sources, but the enormous paperwork and review process associated with this process proved to be an obstacle that the VCS founder was unable to overcome. Financial capital that had been earmarked for product and business development, and then later diverted to compliance with the new SOX regulations, evaporated.

VCS believes that SOX and the resulting environment of inordinate preoccupation with compliance issues proved burdensome and ultimately a major obstacle to securing equity capital. The negative effect of missing its window of opportunity with available skilled personnel and prime manufacturing space was due to the delay associated with compliance.

In addition, the financial capital was not available to retain those resources because it was being paid to attorneys and accountants. VCS has never been able to recover from this as the founder personally financed development and patent filings for his work, and no further personal capital debt or equity was available to him.

As such, VCS is left to wonder what might have been! In earlyOE was financially exhausted after having spent more than 5 years developing a technology product for personal and commercial uses in oceanography.(E) Estimate. Each of these companies or business models were owner-operated with the goal of eventually becoming publicly traded entities.

These case studies occurred between , in the aftermath of the passage of SOX.

3 thoughts on “The Impact of Sarbanes–Oxley on Small Businesses”

Get ready to speak the language of business—from the moment your first class begins. Questrom’s curriculum is balanced between a core of required courses and a broad variety of electives.

1 THE IMPACT OF COMPUTERS ON OUR SOCIETY By Dr A. Yusuf University of Ilorin, Ilorin Being a paper presented at the closing ceremony of the 1st computer training and issuance of certificate by Ascetic Computer Centre on the 15th September the impact of the regulatory environment on small business and highlights issues in need of further research.

In so doing, the review . The World Bank Group works in every major area of development. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face.

The business that I have chosen to study as part of this assignment is TESCO. TESCO is a public limited company, which is very successful an.

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