Answer to Question #200011 in Management for John

Question

 M&L fruit and veggie

Martin and Lorraine are Engineering graduates who have struggled to find employment post university. They have both decided to use their savings to start a business. They have decided to start a small fruit and veggie business in their area. Given that they live in a busy township, they are confident that their business will be a success as there is a market for it. Their biggest challenge however is their limited knowledge on business management and entrepreneurial skills and thus, requires you to play the advisory role for the business.

With reference to their business, discuss M&L potential contribution to the South African economy.

Answer 1

Martin and Lorraine who are a small business enterprise will contribute the following to the South African economy

1. Creation of employment- They will have created a direct short-and-long-term job for more people in the city. As a company grows, gets more clients, and expands, it must recruit more employees to manage all facets of the business. Customer service, sales, marketing, accounting, and development, to name a few.
2. The erection of the business will give the government revenue through taxation.
3. Encouraging more entrepreneurs- With their motivation more people who have struggled to seek employment will come out and start a small business that will help them earn a daily living
4. Working as sub-industry in big industries