Extortion has now become a major concern for many entrepreneurs and small businesses, and its impact on the economy deserves greater public attention. Small business owners are frequently forced to pay illegal money to local groups in order to run their enterprises peacefully. These payments increase operating expenses and reduce already limited profits. In many cases, business owners become frustrated and some are even forced to shut down their businesses.
This situation also discourages both local and foreign investment. Investors prefer a stable and secure environment where businesses can operate without illegal demands or intimidation. When extortion becomes common, it can damage the country's reputation as a safe destination for investment. Another consequence is the growth of the informal economy, as some entrepreneurs avoid officially registering their businesses out of fear of harassment. Additionally, when businesses struggle or close due to extortion, job opportunities decrease and unemployment rises. The cost of extortion is often passed on to consumers through higher prices for goods and services, making everyday life more expensive. Fear of harassment can also discourage young entrepreneurs from starting new enterprises.
Stronger law enforcement and stricter monitoring are necessary to curb extortion. Authorities should increase supervision in markets and commercial zones to prevent illegal activities. At the same time, complaint systems and business protection measures-such as anonymous reporting lines-would allow business owners to report extortion safely. Promoting digital payment systems can also help reduce illegal cash transactions, as digital records make it harder for extortionists to demand untraceable money. Furthermore, the government should introduce support services and security protocols for small businesses so that entrepreneurs can operate without fear.
Extortion not only harms individual businesses but also undermines overall economic development. Creating a safe, transparent, and conducive business environment is essential for encouraging entrepreneurship, securing investment and ensuring long-term economic growth.
Adiba Binte Enam
BBA Department
North South University