Part 6 – Continued
This is the continuation, and part 1 to 5 has already published. The write up presented here are taken from my dissertation. This writer believes that this information will help those who want to create a business as an efficient entrepreneur.
Participants were asked about the effect of the level of financial investment on their businesses. The purpose was to gauge the impact of finance on their businesses. In response, most participants stated – “The higher the investment, the higher will be the benefit.” Financial investment always has a positive role in running a business since it always brings a positive output and new prospects. However, its specific impact is still subject to the nature of the company.
The participants found a positive relationship between finance and business. They said that if one increases, the other also increases. Some even stated that it has a less positive effect on the initial period and a more positive impact after some time. If they had invested more, they got more, they said. One participant believed that for small businesses like his, financial investment has a positive effect, primarily when the company is managed correctly.
Some participants noted that businesses that are not financially sound will be unable to advertise and thus will be incapable of expanding the industry. Still, other participants believed that given the present economic situation, the level of financial investment has a neutral role to play in running the business since, in general, the company does not expand in the time of recession. One participant stated that there is only a limited financial investment effect in the restaurant business; one does not need to invest much because success depends upon service. If the service is fast, the company no doubt will thrive. Further, if there is a very high demand in the locality where they operate their restaurant business, it is likely to succeed.
In response to the effect of additional financial investment on their businesses’ profit margin, most participants agreed that “More investment means more business” and that it always positively affects the company since if they invest more, they will get more. They expressed the view that additional investment always produces a positive outcome. Another financial investment creates opportunity, the majority of respondents agreed. The demand for additional investment arises because of the need to expand the business by adding extra goods and services to sell at lower prices to attract customers. Further, a business necessitates additional investment, but ultimately it has a positive effect.
In response to the factors other than business knowledge, educational level, and financial investment that have an effect on business, participants listed the following characteristics as having a salutary effect on business:
Additionally, participants named good public relations, family business background, quality of product or service, good customer service, location, honest and experienced workers, appropriate equipment, competitiveness, and trained people as being equally important to a business.
Finally, some participants said they had no idea about the factors other than business knowledge, financial investment, and educational level that contribute to business success. These three were critical elements.
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