Business studies characteristics of the local business

Globalization The development of global studies in secondary and tertiary education is arguably a product of globalization, and its consequent results on the international community.

Business studies characteristics of the local business

Microfinance and poverty[ edit ] Financial needs and financial services. In developing economies and particularly in rural areas, many activities that would be classified in the developed world as financial are not monetized: This is often the case when people need the services money can provide but do not have dispensable funds required for those services, forcing them to revert to other means of acquiring them.

Common substitutes for cash vary from country to country but typically include livestock, grains, jewelry and precious metals. As Marguerite Robinson describes in The Micro finance Revolution, the s demonstrated that "micro finance could provide large-scale outreach profitably," and in the s, "micro finance began to develop as an industry"p.

While much progress has been made in developing a viable, commercial micro finance sector in the last few decades, several issues remain that need to be addressed before the industry will be able to satisfy massive worldwide demand.

The obstacles or challenges to building a sound commercial micro finance industry include: Poor regulation and supervision of deposit-taking micro finance institutions MFIs Few MFIs that meet the needs for savings, remittances or insurance Limited management capacity in MFIs Institutional inefficiencies Need for more dissemination and adoption of rural, agricultural micro finance methodologies Members lack of collateral to secure a loan Microfinance is the proper tool to reduce income inequality, allowing citizens from lower socio-economical classes to participate in the economy.

Moreover, its involvement has shown to lead to a downward trend in income inequality Hermes, Building a new home may involve saving and protecting diverse building materials for years until enough are available to proceed with construction.

A poor family might borrow from relatives to buy land, from a moneylender to buy rice, or from a microfinance institution to buy a sewing machine. Microcredit institutions should fund their loans through savings accounts that help poor people manage their myriad risks. Recent studies have also shown that informal methods of saving are unsafe.

For example, a study by Wright and Mutesasira in Uganda concluded that "those with no option but to save in the informal sector are almost bound to lose some money—probably around one quarter of what they save there. The new paradigm places more attention on the efforts of poor people to reduce their many vulnerabilities by keeping more of what they earn and building up their assets.

While they need loans, they may find it as useful to borrow for consumption as for microenterprise. A safe, flexible place to save money and withdraw it when needed is also essential for managing household and family risk. This microfinance project functions as an unofficial banking system where Jyothi, a "deposit collector", collects money from slum dwellers, mostly women, in order for them to accumulate savings.

Jyothi does her rounds throughout the city, collecting Rs5 a day from people in the slums for days, however not always days in a row since these women do not always have the funds available to put them into savings. They ultimately end up with Rs at the end of the process.

However, there are some issues with this microfinance saving program. One of the issues is that while saving, clients are actually losing part of their savings.

There is also the risk of entrusting their savings to unlicensed, informal, peripatetic collectors. However, the slum dwellers are willing to accept this risk because they are unable to save at home, and unable to use the remote and unfriendly banks in their country.

This specific microfinance project is an example of the benefits and limitations of the "saving up" project Rutherford, Everyday 15 women would save shillings so there would be a lump sum of 1, shillings and everyday 1 of the 15 women would receive that lump sum. This would continue for 15 days and another woman within this group would receive the lump sum.

At the end of the 15 days a new cycle would start. This ROSCA initiative is different from the "saving up" example above because there are no interest rates affiliated with the ROSCA, additionally everyone receives back what they put forth.

This initiative requires trust and social capital networks in order to work, so often these ROSCAs include people who know each other and have reciprocity. The ROSCA allows for marginalized groups to receive a lump sum at one time in order to pay or save for specific needs they have.

Microfinance debates and challenges[ edit ] There are several key debates at the boundaries of microfinance. This program was established in as one of the only microfinance lenders in the country.

One of the principal challenges of microfinance is providing small loans at an affordable cost. Indeed, the local microfinance organizations that receive zero-interest loan capital from the online microlending platform Kiva charge average interest and fee rates of For example, in Sub-Saharan Africa credit risk for microfinance institutes is very high, because customers need years to improve their livelihood and face many challenges during this time.

Additionally they are unable to design new products and enlarge their business to reduce the risk. The high costs of traditional microfinance loans limit their effectiveness as a poverty-fighting tool.

According to a recent survey of microfinance borrowers in Ghana published by the Center for Financial Inclusion, more than one-third of borrowers surveyed reported struggling to repay their loans.What is Business Studies?

- What is Business Studies. Business studies is the study of how businesses are set up, financed, organised and controlled, how people are employed, managed and paid, how goods are developed, produced and sold, how goods and services are priced and how the local, national and international government help or hinder businesses.

In studying the setting up of a business. Aug 04,  · After the product, price, and promotion has been decided, the product/service has to be available to the consumer where and when they want to regardbouddhiste.comers should be able to get to the product easily, and the product has to be in the right place (e.g.

expensive chocolate shouldn't be in a small grocery store) to sell regardbouddhiste.com: MrSpitfire. Organizations competing on an international basis face choices in terms of resource allocation, the balance of authority between the central office and business units, and the degree to which products and services are customized in order to accommodate tastes and preferences of local markets.

Business studies characteristics of the local business

Subpart —Solicitation and Receipt of Proposals and Information Scope of subpart. This subpart prescribes policies and procedures for—. 5 B. How and where to do research (secondary) • Local regardbouddhiste.com best source of information is still the library. Many have business librarians and/or space dedicated to business reference materials.

3 GCSE Business () For exams onwards. Version Visit regardbouddhiste.com for the most up-to-date specification, resources, support and administration.

Business studies characteristics of the local business
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