Accounting technicians scheme west africa
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| A.3 Need of Business From the definitions above, we know that business is the totality of activities involved in providing the necessities of life through commercial enterprise. The need for business can be as a result of the following (Adebayo et al., 2003): • To meet human needs and desires by providing good and services. • To facilitate the conversion of gift of nature to goods and services that meet human needs. • To solve the problems of the society by addressing them through the creation of satisfactions. • To create employment opportunities. • To raise the standard of living of the society. • To enhance the efficient allocation resources. • To create competitive environment. • To create wealth. A.4 Resources of Business It is important to understand the resources which business makes use of. In economic jargon, a business activity ensures creation of value or increases the values of existing goods. For these values to be created, certain resources must be available. Enikanselu et al. (2016) explained the resources thus ii Natural Resources: The productive capacity of any society is partly explained by its natural resources endowments such as land, climate and water. Land is not limited to soil but all the minerals in the ground, the timber resources, the airspace and all its constituents, the climate and the water resources. Land is used to denote the surface of the earth, everything beneath that surface, and everything 4 above. Land resources constituting the basic raw materials which business convert into other utilities. iii Human Factor: Labour is the human effort which is either physical or mental that is exerted in the production of goods and services. It is through the use of labour and other resources that the natural resources are exploited and converted into other more valuable goods and services. The machines that are used for production of goods and services are the creation of man through its mental exertion of the use of the machine is possible through the mental ability or intelligence of man. The drive, direction and desire to get the resources of business activated and committed to production of goods and services is at the discretion of human mind and interest. So, the human factor is fundamental to the economic well-being of any nation. The difference between the developed and underdeveloped economy is principally due to the quality level of their human element coupled with their interests and desires. iii) Capital Factor: Capital can be described as all the man-made items that workers use in production and distribution or man-made items used for the creation of further wealth. Capital is indifferent forms – such as tools, factories, machinery, vehicles, etc. The capital resources listed above can be classified into fixed and floating or current capital. Buildings, machinery, equipment and vehicles are classified as fixed capital while stock in goods, cash at hand are regarded as current capital. iv) Government: Government policies and the infrastructure facilities provided by government play important role in business. The level of protection that government provides for Nigerian firms will have implications on their level of operations and growth. The enabling environment created by government is critical to the well-being of firms or businesses operating in the country. vi Entrepreneurship:i Entrepreneurs are people who have the ability to see and evaluate business opportunities gather the necessary resources to take advantage of them and to initiate appropriate action to ensure success. The factor of land, labour and capital will be idle if there is no person to organise, combine and use them for business. That individual who takes the risk of organising, combining and using these factors of production to produce tangible products of value is the entrepreneur. The art or process of identifying business opportunities and organising, planning, directing and controlling other factors of production to exploit the opportunities of the citizenry of a nation has implication on the productive level of its factors or production. The entrepreneur may not be directly involved in the actual management of the enterprise but bears the principal risk of the business. Download 3.37 Mb. Share with your friends:
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