Thesis Abstract

Abstract
The implementation of minimum wage policies has been a topic of debate in economic literature, particularly regarding its effects on small businesses in local economies. This thesis explores the impact of minimum wage increases on small businesses in the local economy, focusing on understanding the challenges and opportunities faced by small business owners as a result of such policy changes. Through a comprehensive literature review, this study examines the theoretical frameworks and empirical evidence related to minimum wage increases and their effects on small businesses. The research methodology involves a combination of quantitative analysis and qualitative interviews with small business owners to gain insights into their experiences and perspectives. Chapter One provides an introduction to the study, presenting the background, problem statement, objectives, limitations, scope, significance, structure of the thesis, and definitions of key terms. Chapter Two presents a detailed literature review, encompassing ten key themes related to minimum wage increases and small businesses. Chapter Three outlines the research methodology, including research design, data collection methods, sampling techniques, and data analysis procedures. Chapter Four presents an in-depth discussion of the findings, highlighting the various impacts of minimum wage increases on small businesses, such as changes in employment levels, business operations, pricing strategies, and overall competitiveness. The chapter also discusses the strategies adopted by small business owners to adapt to minimum wage increases and the implications for the local economy. Chapter Five offers a conclusion and summary of the thesis, drawing key insights from the research findings and discussing their implications for policymakers, small business owners, and other stakeholders. The study contributes to the existing literature by providing empirical evidence on the effects of minimum wage increases on small businesses in the local economy, offering valuable insights for future research and policy development in this area. Overall, this thesis sheds light on the complex dynamics between minimum wage policies and small businesses, emphasizing the importance of understanding the nuanced impacts of such policies on the local economy. By examining the challenges and opportunities faced by small business owners in response to minimum wage increases, this study aims to inform evidence-based policy decisions that promote sustainable economic growth and support the resilience of small businesses in the local economy.

Thesis Overview

The research project titled "The Impact of Minimum Wage Increases on Small Businesses in the Local Economy" aims to investigate the effects of minimum wage hikes on small businesses operating within a specific local economy. The topic is of significant relevance today as policymakers grapple with the balancing act of addressing income inequality while ensuring the economic sustainability of small businesses, which are often the backbone of local communities. The project will delve into the background of the study, detailing the historical context of minimum wage policies and their evolution over time. It will also examine the existing literature on the subject, identifying key theories and findings that have shaped the current understanding of how minimum wage increases impact businesses, particularly small enterprises. The problem statement will highlight the challenges faced by small businesses in adapting to minimum wage hikes, such as increased labor costs and potential impacts on profitability and competitiveness. The research objectives will be clearly defined to guide the study towards a comprehensive analysis of the issue, including the exploration of potential strategies that small businesses can employ to mitigate the negative effects of minimum wage increases. The limitations of the study will be acknowledged to provide transparency about the boundaries of the research and potential constraints that may impact the findings. The scope of the study will outline the specific focus areas and parameters within which the research will be conducted, ensuring a targeted and precise investigation. The significance of the study lies in its potential to inform policymakers, business owners, and other stakeholders about the real-world implications of minimum wage increases on small businesses. By shedding light on the challenges and opportunities associated with such policies, the research aims to contribute valuable insights to the ongoing debate on labor market regulation and economic development. The structure of the thesis will be outlined to provide a roadmap for readers, detailing the organization of chapters and key sections that will be covered in the research. Additionally, a comprehensive definition of terms will be provided to clarify key concepts and terminology used throughout the study, enhancing understanding and coherence. Overall, the research overview sets the stage for an in-depth exploration of the impact of minimum wage increases on small businesses in the local economy, with the ultimate goal of generating actionable insights that can support informed decision-making and policy formulation in this critical area.