Business enterprise, small, medium or large requires some basic needs for its proper functioning. For instance, a hawker of ware of needs premises, some sell, and at times a shade where to sell.
The mechanic needs premises, some tools and other people who need skills to service vehicles for his customer. An electrician would need tools and assistance in other to carryout repairs in other people's houses. It also follow that business where raw materials such as groundnut, cotton, sea-nut, cocoa, rubber among others, have to proceed certain basic needs to be acquired to be able to operate effectively. These needs are called resources; They enable a firm to complete favorably with other firms in the market place.
The following are some of the basic needs or resources required by an entrepreneur before the commencement of the business operations :
(1) Money
Money is needed in all aspects of business, in order words, money is indeed at all levels of business formation. The entrepreneur needs money to register his business under the registration of business name act of 1961 or companies allied matters act of 1960 and other related laws. Also the entrepreneur would need money to buy land and build the business office or hire officers, pay taxes, buy or hire machines or equipment, hire the managing of the business, selling products and keeping record of transactions. The entrepreneur can source the money from his savings at bank or with cooperatives. He may also borrow money from bank(bank of industry, micro finance bank among others)
(2) . Material
Without raw materials or goods to use in our business enterprises, the business house will remain an empty structure, waiting to crack and fall apart, skilled and unskilled workers will have no work to do and the machines we bought will be bought will be lying idle till the final depreciation. Raw materials include all the substance used to make things. For instance, rice milling industry will need rice; the producer of garri will need casava, pom oil producer will need palm fruits sugar producer will need sugarcane and so, fruit juice producer will need varieties of fruits. We can Aldo buy raw materials or goods we need in our business. If we have our own money, otherwise, we can borrow money to buy them.
(3) . Machines and other working tools
Machines are used in transforming raw materials into finished goods. We need machines and equipment to carryout production work. In our business enterprise. It could be simple or complex machine or a combination of both, depending on the nature of business. Machines can make a tough job seem easier by enabling a worker apply less force In a direction that is easier to manipulate. For instance photocopy machines computer sets and internet connectivity services in a business center can make the work of operators easier. We can buy or hire machines. Also, if we have our our own money or else we xn borrow money to buy them
(4). Men
In business, we need the mental as well ad physical capabilities of men and women to start productions and other activities. In other words, we need the support of other people to operate our machines, pack our goods, sell our goods, keep records if what we buy and sell, keep the business premises clean, watch the goods and marerialin the factory. For these services, we can employ the services of worker. There are two categories of workers. The management of staff who stay in the offices to manage the business. The other category is skilled and unskilled workers who work in the factory.
(5) . Land
This could be open land/yard, a complete building or part of a building. Nevertheless, it is the business house or workshop from where business activities( production, sales, distribution etc ) take place. We can hire land or building for our business activities or buy them out rightly. If we have our own money otherwise, we have to borrow money from friends, relations, banks and other money lenders to buy or hire land or building fit our business activities
(6)Knowledge and skill
The need for knowledge ad part of our business resources have been dictated by the demand of the plural society. This demand has created knowledge opportunities as well; as knowledge entrepreneurs. A knowledgeable entrepreneur could be seen as someone who applies to productive work, concepts and information rather than manual skill. This is partly because knowledge is foundation of skill and partly due to the fact that knowledge without skill is unproductive. The application of knowledge to productive work requires determination and skill. Skill is the ability to do work expertly and well. Therefore, possession of relevant knowledge facilities combination of skills and other resources required by the entrepreneur. Nevertheless we can acquire knowledge from formal and informal learning systems.
The mechanic needs premises, some tools and other people who need skills to service vehicles for his customer. An electrician would need tools and assistance in other to carryout repairs in other people's houses. It also follow that business where raw materials such as groundnut, cotton, sea-nut, cocoa, rubber among others, have to proceed certain basic needs to be acquired to be able to operate effectively. These needs are called resources; They enable a firm to complete favorably with other firms in the market place.
The following are some of the basic needs or resources required by an entrepreneur before the commencement of the business operations :
(1) Money
Money is needed in all aspects of business, in order words, money is indeed at all levels of business formation. The entrepreneur needs money to register his business under the registration of business name act of 1961 or companies allied matters act of 1960 and other related laws. Also the entrepreneur would need money to buy land and build the business office or hire officers, pay taxes, buy or hire machines or equipment, hire the managing of the business, selling products and keeping record of transactions. The entrepreneur can source the money from his savings at bank or with cooperatives. He may also borrow money from bank(bank of industry, micro finance bank among others)
(2) . Material
Without raw materials or goods to use in our business enterprises, the business house will remain an empty structure, waiting to crack and fall apart, skilled and unskilled workers will have no work to do and the machines we bought will be bought will be lying idle till the final depreciation. Raw materials include all the substance used to make things. For instance, rice milling industry will need rice; the producer of garri will need casava, pom oil producer will need palm fruits sugar producer will need sugarcane and so, fruit juice producer will need varieties of fruits. We can Aldo buy raw materials or goods we need in our business. If we have our own money, otherwise, we can borrow money to buy them.
(3) . Machines and other working tools
Machines are used in transforming raw materials into finished goods. We need machines and equipment to carryout production work. In our business enterprise. It could be simple or complex machine or a combination of both, depending on the nature of business. Machines can make a tough job seem easier by enabling a worker apply less force In a direction that is easier to manipulate. For instance photocopy machines computer sets and internet connectivity services in a business center can make the work of operators easier. We can buy or hire machines. Also, if we have our our own money or else we xn borrow money to buy them
(4). Men
In business, we need the mental as well ad physical capabilities of men and women to start productions and other activities. In other words, we need the support of other people to operate our machines, pack our goods, sell our goods, keep records if what we buy and sell, keep the business premises clean, watch the goods and marerialin the factory. For these services, we can employ the services of worker. There are two categories of workers. The management of staff who stay in the offices to manage the business. The other category is skilled and unskilled workers who work in the factory.
(5) . Land
This could be open land/yard, a complete building or part of a building. Nevertheless, it is the business house or workshop from where business activities( production, sales, distribution etc ) take place. We can hire land or building for our business activities or buy them out rightly. If we have our own money otherwise, we have to borrow money from friends, relations, banks and other money lenders to buy or hire land or building fit our business activities
(6)Knowledge and skill
The need for knowledge ad part of our business resources have been dictated by the demand of the plural society. This demand has created knowledge opportunities as well; as knowledge entrepreneurs. A knowledgeable entrepreneur could be seen as someone who applies to productive work, concepts and information rather than manual skill. This is partly because knowledge is foundation of skill and partly due to the fact that knowledge without skill is unproductive. The application of knowledge to productive work requires determination and skill. Skill is the ability to do work expertly and well. Therefore, possession of relevant knowledge facilities combination of skills and other resources required by the entrepreneur. Nevertheless we can acquire knowledge from formal and informal learning systems.
BASIC RESOURCES OF SMALL SCALE BUSINESS ENTERPRISE
Reviewed by eemyblinks
on
November 01, 2019
Rating:
Reviewed by eemyblinks
on
November 01, 2019
Rating:
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