Impact of Population Growth on Business Environment- Report

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Impact of Population Growth on Business Environment 1
IMPACT OF POPULATION GROWTH ON BUSINESS ENVIRONMENT
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Impact of Population Growth on Business Environment 2
Executive Summary
The current paper thus is an exploration of the New South Wales population growth
2006-2016 and subsequent changes in business environments .Global population is estimated to
be more than 10 billion by the end of 2050. According to the economist, population growth has
different economic impacts. Australian population growth rate is perceived to have regional
differences .according to the released data by ABS, Australian capital cities experience growth
by 3 million between 2006 and 20016, representing about 78% of the entire country’ growth over
the decade. The business environment tends to respond differently to the impact of the
population. The population shifts as a result of a natural cause of migration determined the
composition of the workforce, types of services, and products produced technological change in
business as well as the demand and supply rate.

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Contents
Introduction......................................................................................................................................2
New South Wales Population growth between 2006 and 2016.......................................................2
The subsequent impact on business.................................................................................................5
Emerging markets........................................................................................................................5
Technological change in business................................................................................................6
The demand for goods and service..............................................................................................6
Conclusion.......................................................................................................................................7
List of References............................................................................................................................9

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Impact of Population growth between 2006 and 2016 on the business environment in New South
Wales
Introduction
Over the past decades, population growth has been growing concern across many
countries in the world. By 1950 the global population was about billion, while by 2007, the
population had grown up to 6.7 billion and is estimated to be more than 10 billion by the end of
2050. According to the economist, population growth has different economic impacts; for
example, populace growth stimulates country’s wellbeing expansion based on the fact that
population grows geometrically while food supply increases arithmetically. On the other hand,
other economists such as Robert Mathus perceive that population growth is detrimental to
ecommerce growth as an economic resource such as saving, receive more pressure. Australian
has experienced tremendous population growth over the years, thus being ranked as number five
among the top ten OECD countries with the highest population growth for the past decade
(Abs.gov.au. 2020). The Australian population growth is attributed to international migration,
making immigrants command more than the Australian-born children in terms of numbers. The
Austrian population growth is different across the cities and regions, posing different effects on
the business environment. The current paper thus is an exploration of the New South Wales
population growth 2006-2016 and subsequent changes in business environments.
New South Wales Population growth between 2006 and 2016
Australian population growth rate is perceived to have regional differences .according to
the released data by ABS, Australian capital cities experience growth by 3 million between 2006

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and 20016, representing about 78% of the entire country’ growth over the decade. Melbourne
had the most significant population growth, followed by Sydnee, Brisbane, and Perth. New
South Wales is a state found on the southwestern with Sydney as the capital city. The NSW
population increased by 1.04 million to reach a milestone of 5 million people between 2006 and
2016, a representation of a 15% increase in population, as shown in figure 1 (Coffee, Lange and
Baker 2016,p.520). The areas that experienced the most significant growth included Parklea-
Kellyville Ridge that had above 22,200, Sydney’s North West, and the inner city. The ABS
report indicates that the Aboriginal population as the fasted growing in the country.
During the decade, the Aboriginal population grew from 189,000 in 2016 to 267,000 in
2016.According to the ABS; NSW’s population growth is attributed to different elements that are
natural increase, births, deaths, and the net oversea migration. After the introduction of the
contraceptive in 1961, NSW and the entire country started experiencing a decline in the birth
rate; thus, most of the population increase was attributed to the net overseas migration
(Abs.gov.au. 2020). NOM has considerably contributed to the NWS population growth,
especially from the 2000s, as shown in figure 2. The Australian populace aging number has been
growing over the past decade, and all these have detrimental effect on the business environment
of the NSW as well as the entire Australian. The net oversea refers to the difference between
immigration and emigration.

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Figure 1 shows Australian populace expansion between 2006 and 2016, obtained from (Coffee,
Lange and Baker 2016)
Figure 2: Shows Australian population growth between 2006 and 2016 in terms of cities,
obtained from (Abs.gov.au. 2020)

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The subsequent impact on business
The business environment tends to respond differently to the impact of the population.
The population shifts as a result of a natural cause of migration determined the composition of
the workforce, types of services, and products produced as well as the demand and supply rate
(Views 2015). The impact of the population on business is extensively elaborated through the
use of population dynamics and growth theories. The immigration enhanced the movement of
miners into the NSW, resulting in mass mining that eventually increased the income rate among
the residents.
Emerging markets
The population growth has dramatically impacted the transport and infrastructure across
numerous countries. When the population grows, the rate of movement within and outside a
country, region, or city grows along. NSW transport business has grown tremendously over the
ten years. During the decade, the transport and communication expenses had increased at a rate
of 77.5 percent per annum, thus enhancing the transport and communication business. Rail
transport business counted to more than 40% over the transport business during the decade since
the number of people that used trains increased (Depew and Sørensen 2013, p.198). Population
growth has been attributed to the improvement of the economic powerhouse, especially in
Western countries.
NSW population growth thus exposes the state to be one of the emerging markets for
numerous business opportunities, such as the production of vehicles to curb the movement of the
people from one place to another. It is worth noting that the population growth along the
economic status of the NSW enhances the competitive advantage of the region over other regions
in Australia. During 2006 and 2016, automotive industries also experienced positive business

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growth during the decade as a result of the increasing population. The demand for the vehicle
such as boxy Holden HX in NSW recorded an increase in sales as compared to the past 40 years.
Technological change in business
According to Esther Boserup, populace expansion has constructive influence on
increasing the supply rate of a country. The theory denotes that population increase exerts
pressure on the natural resources that are deemed to depletion, thus forces the human resources
to find better ways of doing business resulting in innovativeness (Coccia, 2014, p.56). Since the
studies indicate that NSW population growth is attributed to the immigration of people from
across the countries, are always experts looking for business opportunities, thus with increased
knowledge, have facilitated the industrialization of NSW and entire Australia.
Technological advancements have a tremendous impact on business activities such as the
encroachment of mobile technology from nanotechnology to enhance the adoption of virtual
business operations. The immigrants set up a small innovative business that has continued to the
backbone of the NSW’s economy (Siklos 2017). Through the use of the New Arrival Tracker,
the NSW labor supply increased by more than 50%, an aspect that did not only enhance the
productivity but also transformed the business operations in the regions as numerous private
sectors were developed Coccia, 2014, p.58). By the end of 2016, there were more than 85% of
NSW employees working in innovative private sectors that are translated to enhanced per capita
income.

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The demand for goods and service
Since the adoption of the contraceptive system and the introduction of the boomers'
generation, a large number of Australians are now giving birth to few children than that is
required to replace itself (Fang and Leong 2014). Most of the population thus is now moving into
the traditional age retirement and will take longer for any generation before. SW population has
placed pressure on the demand and services as well as infrastructures resulting in high
expenditure. Therefore, when the population is not controlled, the NSW’s will continue to grow
with a fiscal gap of about 3.4 percent resulting in an equivalent of $17 billion by the end of
2056.
It is worth noting that with the expenditures growth, the business environment feels good,
since there is an increased demand for goods and services from the elderly population (Fang and
Leong 2014). According to the economist, the NSW economy will expand even though at a
reduced rate. As the aging population retires at a higher rate than the boomer generation, the
workforce in the workplace continues to reduce, thus reducing the productivity rate. The
population growth, mainly as a result, is attributed to the supply of enough labor that is a solution
to the labor deficit created by the aging population. The increased labor supply thus ensure that
all business operation at minimum cost with the availability of labor resulting in improved
production (Siklos 2017). From 2006 to 2016, the workforce was majorly constructed with
people over 15 years fell from 64% to 59% and is projected to continue dropping.
Conclusion
In conclusion, population growth has been growing concern across many countries in the
world. By 1950 the global population was about billion, while by 2007, the population had

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grown up to 6.7 billion and is estimated to be more than 10 billion by the end of 2050. Australian
has experienced tremendous population growth between 2006 and 2016 and is attributed to
international migration, making immigrants command more than the Australian-born children in
terms of numbers. Australian population growth rate is perceived to have regional differences,
with Melbourne having the most significant population growth, followed by Sydnee, Brisbane,
and Perth. New South Wales is a state found on the southwestern with Sydney as the capital city.
New South Wales population growth 2006-2016 and subsequent changes in business
environments such as on increased demand due to the aging population, improved technical
business, improved productivity rate, and enhanced transport and infrastructure system.

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List of References
Abs.gov.au. 2020. 3218.0 - Regional Population Growth, Australia, 2006-16. [online] Available
at: <https://www.abs.gov.au/ausstats/abs@.nsf/mf/31218.0> [Accessed 19 April 2020].
Abs.gov.au. 2020. Population - Australian Bureau Of Statistics. [online] Available at:
<https://www.abs.gov.au/Population> [Accessed 19 April 2020].
Coccia, M., 2014. Driving forces of technological change: The relation between population
growth and technological innovation. Technological Forecasting and Social Change, (82),
pp.52-65.
Coffee, N., Lange, J. and Baker, E., 2016. Visualising 30 Years of Population Density Change in
Australia’s Major Capital Cities. Australian Geographer, 47(4), pp.511-525.
Depew, B. and Sørensen, T., 2013. The elasticity of labor supply to the firm over the business
cycle. Labour Economics, (24), pp.196-204.
Fang, Q. and Leong, C., 2014. Impact of Population Growth and One Child Policy on Economic
Growth of China. SSRN Electronic. Journal of College Population and Growth vol.3, no.8,
pp.55-62.
Siklos, P., 2017. Boom-and-Bust Cycles in Emerging Markets: How Important is the Exchange
Rate? Journal of Emerging Markets,(4),pp.68-72.
Views, E., 2015. Emerging Markets 2015 Outlook: Weak Growth, Falling Rates, Delayed
Deleveraging. Journal of Emerging Markets,(1),pp.38-122.

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