Economy, asked by suhanee8566, 1 year ago

Compare the primary and secondary stakeholders.

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Answered by supriyagalanki1
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The Difference Between Primary and Secondary Stakeholders

You may run your own business, but sometimes it can seem like you still have a lot of bosses you report to. Stakeholders who have an interest in how your business performs can make demands, and meeting those demands can mean the difference between success and failure for your company. However, not all stakeholder requests are created equal. Some stakeholders simply are more vital than others in your decision making.

Financial Stake

Primary stakeholders may have a financial position in your company, whether they invested money to help you grow or they're employees counting on your paychecks to pay their rent. Decisions you make can affect their incomes. For example, if you decide to expand, you may make less profit for a while as you pay for that expansion. Investors and lenders may see this as a threat to their income, while employees may have a contrary view if they perceive that it enhances their own prospects. Secondary stakeholders, on the other hand, are those whose incomes won't be affected by your decisions. For example, people living in the neighborhood won't face any financial impact if you decide to add a new product line. As long as you don't make decisions that could hurt their property values, they remain secondary stakeholders from a financial point of view.

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