How to Establish a Business

Only available on StudyMode
  • Download(s) : 30
  • Published : March 6, 2013
Open Document
Text Preview
Choosing the Type of Business to Establish

Introduction

Rationale

There are so many types of businesses people can choose from. They vary according to countries, peoples’ cultures and communities, likes and dislikes, needs and wants, values and even religions. At many instances, the nature of the government also affects the determination of the natures of the businesses, their downfalls and successes. General business policies are formulated and tailored to the existing government laws, rules and regulations covering tax dues and payments and personnel welfare, benefits, programs, administration and protection. There are businesses that may be established and operated in the Northern American and other democratic countries but not possible to operate in communist countries like China and the like. This is an example of the influence of a particular country or government in the selection of the type of business that one person may desire to establish. There are communities that are so conservative that may hinder the selling of a particular product. It is not profitable for a particular investor to invest in pork products in a Muslim community. The likes and dislikes of people are also determining factors in the selection of the type of business to establish. In the rural areas, a business selling computers will surely not make much profit. People in such areas may have other priority needs and wants than computers. In Muslim countries, selling Christian items such as Christian books and bibles will definitely not generate much income for the investors if ever they would even be permitted to operate such business. Religion may also be a factor to consider in deciding what business to establish. Many businesses grow bigger and fast and some easily close down within a short period of time due to many reasons and among them is the failure to consider that above mentioned things. So in this study, focus will be given on the things a business man should consider in choosing the type of business to establish.

Statement of the Problem

The main problem of this study is stated as “what are the important things to consider in choosing the type of business to establish?” This study will determine the specific answers to the following sub-questions:

a) How do the government laws, rules and regulations affect the selection of the type of business to establish? b) How does the nature of the community affect the selection of the type of business to establish? c) How do we determine the potential demand for a product in a particular community? d) What is the current status of business competition in the area for a particular proposed product?

Significance of the Study

This study will provide specific guides to prospective business investors in choosing the type of business to establish in any particular community. This will also help prevent the wasting of financial resources of people and may redirect their investments in other profitable ventures and areas. The needs and wants of people in an area may be well provided through this study and contribute income to the local city or municipality through the payments of income taxes.

Scope

This study will be limited to single proprietorship businesses only and the business locations and communities will be limited to Daraga and Legazpi City only.

Methodology

This study will use the descriptive survey method. Information gathering will be performed and each information will be verified by analyzing its relevance and its actual existence in a particular community. The present condition of the place will also be evaluated according to a specific time and period in connection with the identified things that will serve guide in the selection of the type of business to establish.

The research instrument will be the questionnaire form that will contain different questions that will provide information that will be of use in the research. The...
tracking img