Impact of crony capitalism on businesses

Crony capitalism harms businesses by favoring connected firms over deserving ones. This system breeds corruption and stifles fair competition. It undermines trust in the market and distorts resource allocation. Cronies receive undue benefits, weakening the economy and eroding public confidence. Small businesses face higher barriers to entry, limiting innovation and growth opportunities. The unholy alliance between businesses and government officials leads to subpar products and services. Consumers suffer from limited choices and higher prices. In the long run, crony capitalism undermines economic progress and hinders sustainable development. Businesses must strive for transparency and accountability to combat this destructive influence.
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