ASSIGNMENT:
The small and medium enterprises (SMEs) are considered as the engine of
prosperity for the vast majority of people, particularly in case of the disadvantaged segment in developing and developed countries alike. They accelerate economic activity, job creation and capital formation for the common good rather than increasing surplus for the few.
85% to the country’s GDP by engaging about 85% of non-agricultural labour force. The vibrant SMEs of Taiwan have expedited economic growth making Taiwan the sixth largest per capita ($16,400) earner in Asia and holder of the fifth largest foreign exchange reserves in the world.
What does it really take to make a business successful? This is not an easy
question to answer, as each entrepreneur has a different definition of success. The answer of success is too simple: “The key to a successful business is customer service and retention. That is so much more important than marketing. An entrepreneur is one man show, who has to make all decision regarding the enterprise (Finance, Procurement, Marketing, HR, Supply chain etc).
Consider that you are the head of a small enterprise (Ayan Art Furniture) in the
furniture sector, who are planning to serve the classical furniture requirements of homes and offices. The entrepreneur has facing a stiff competition from competitors in term of getting sales and also lacks its marketing ability to actively locate its business and find potential customers. The economy is dwindling, inflation is at its peak, power crisis is prevailing and purchasing power is decreasing overtime.
In the light of above what kind of actions Ayan Art Furniture has to take to establish its SME setup. Also what can be possible draw backs in selecting new venture opportunities?
At least mention five possible SME’s sectors in Pakistan, which have tremendous
potential for growth.
Solution
With the possible exception of profitable franchises, it normally takes anywhere from six months to several years for new businesses to become profitable businesses. So one of the main problems for people starting small businesses is paying their bills until their new business starts to make money. What can you do?
Possible Solutions to New Businesses Don’t Make Money
1. Have a supportive spouse.
For many people starting a small business, this is the best solution. The working spouse is able to cover the living expenses and contribute to the cost of starting a new business.
2. Use your savings.
Many people find they need to use some portion of their savings to keep themselves and their families afloat when they’re starting a small business. If you look at 8 Sources of Bussiness Start Up Money , you’ll see that a person’s own pockets are the most common source of start up money, whether from savings, re-mortgaging a home, or selling property.
3. Borrow.
Face it; you can’t live on air for months on end while you’re building your new business up to the point that it makes money. Don’t dismiss bank loans as a source of funds. While money is tight, the banks have said repeatedly that they are lending to small businesses with strong business plans. Or perhaps a line of credit will do the trick.
There are other potential sources of small business loans, too, such .
4. Use the Employment Insurance advantage.
If you are currently receiving Employment Insurance now or have received Employment Insurance benefits within the last three years (five years if your Benefits period included a maternity or parental claim), you may be eligible for The Self-Employment Program.
The program’s mandate is to “provide financial assistance to eligible individuals to help them create jobs for themselves by starting a business” and it will provide either regular Employment Insurance benefits until the end of your benefit period or financial assistance for living expenses, while teaching you business skills and how to create a business plan. In my opinion, it’s the best small business grant in Canada. If you’re interested in starting a small business and qualify, you should definitely apply.
5. Get a “lowly” day job.
I don’t mean to denigrate any particular job here; I’m using the world “lowly” to suggest that you might want or need to take a job that you haven’t considered before, either because it’s not what you usually do or pays less than you are used to getting.
Many people have worked as wait people or delivery people to make money while they worked towards their goals. Or a professional might take up work in their same profession that they would not have considered before, such as a teacher doing substitute work.
Starting a Small Business Is a Good Option
Starting a small business isn’t for everyone, but it can be a good option for laid off people who would like the chance to be their own bosses for a change. If you are expecting or hoping that your new small business will replace your employment income, you have to make starting a small business that will make money your first priority. Stay focused on what your target market wants rather than what you would like
The small and medium enterprises (SMEs) are considered as the engine of
prosperity for the vast majority of people, particularly in case of the disadvantaged segment in developing and developed countries alike. They accelerate economic activity, job creation and capital formation for the common good rather than increasing surplus for the few.
85% to the country’s GDP by engaging about 85% of non-agricultural labour force. The vibrant SMEs of Taiwan have expedited economic growth making Taiwan the sixth largest per capita ($16,400) earner in Asia and holder of the fifth largest foreign exchange reserves in the world.
What does it really take to make a business successful? This is not an easy
question to answer, as each entrepreneur has a different definition of success. The answer of success is too simple: “The key to a successful business is customer service and retention. That is so much more important than marketing. An entrepreneur is one man show, who has to make all decision regarding the enterprise (Finance, Procurement, Marketing, HR, Supply chain etc).
Consider that you are the head of a small enterprise (Ayan Art Furniture) in the
furniture sector, who are planning to serve the classical furniture requirements of homes and offices. The entrepreneur has facing a stiff competition from competitors in term of getting sales and also lacks its marketing ability to actively locate its business and find potential customers. The economy is dwindling, inflation is at its peak, power crisis is prevailing and purchasing power is decreasing overtime.
In the light of above what kind of actions Ayan Art Furniture has to take to establish its SME setup. Also what can be possible draw backs in selecting new venture opportunities?
At least mention five possible SME’s sectors in Pakistan, which have tremendous
potential for growth.
Solution
With the possible exception of profitable franchises, it normally takes anywhere from six months to several years for new businesses to become profitable businesses. So one of the main problems for people starting small businesses is paying their bills until their new business starts to make money. What can you do?
Possible Solutions to New Businesses Don’t Make Money
1. Have a supportive spouse.
For many people starting a small business, this is the best solution. The working spouse is able to cover the living expenses and contribute to the cost of starting a new business.
2. Use your savings.
Many people find they need to use some portion of their savings to keep themselves and their families afloat when they’re starting a small business. If you look at 8 Sources of Bussiness Start Up Money , you’ll see that a person’s own pockets are the most common source of start up money, whether from savings, re-mortgaging a home, or selling property.
3. Borrow.
Face it; you can’t live on air for months on end while you’re building your new business up to the point that it makes money. Don’t dismiss bank loans as a source of funds. While money is tight, the banks have said repeatedly that they are lending to small businesses with strong business plans. Or perhaps a line of credit will do the trick.
There are other potential sources of small business loans, too, such .
4. Use the Employment Insurance advantage.
If you are currently receiving Employment Insurance now or have received Employment Insurance benefits within the last three years (five years if your Benefits period included a maternity or parental claim), you may be eligible for The Self-Employment Program.
The program’s mandate is to “provide financial assistance to eligible individuals to help them create jobs for themselves by starting a business” and it will provide either regular Employment Insurance benefits until the end of your benefit period or financial assistance for living expenses, while teaching you business skills and how to create a business plan. In my opinion, it’s the best small business grant in Canada. If you’re interested in starting a small business and qualify, you should definitely apply.
5. Get a “lowly” day job.
I don’t mean to denigrate any particular job here; I’m using the world “lowly” to suggest that you might want or need to take a job that you haven’t considered before, either because it’s not what you usually do or pays less than you are used to getting.
Many people have worked as wait people or delivery people to make money while they worked towards their goals. Or a professional might take up work in their same profession that they would not have considered before, such as a teacher doing substitute work.
Starting a Small Business Is a Good Option
Starting a small business isn’t for everyone, but it can be a good option for laid off people who would like the chance to be their own bosses for a change. If you are expecting or hoping that your new small business will replace your employment income, you have to make starting a small business that will make money your first priority. Stay focused on what your target market wants rather than what you would like
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