This report delves into the concept of minimum wage, exploring its rationale based on protecting employees from exploitation and aligning with the efficacy wage theory. It addresses the problems associated with minimum wage for employers and the economy, such as disrupting demand-supply equilibrium, potential job losses, and challenges for low-income families. The report provides recommendations for small businesses to deal with minimum wage increases, including cost reduction, price adjustments, staff management, and business diversification. It emphasizes the importance of conducting a thorough business audit to align financial flows effectively. This report is intended to provide a comprehensive understanding of the complexities surrounding minimum wage and its impact on businesses and the economy.