Question

Janet has a small farm and her husband works in a nearby mine, but even though both of them have jobs, they do not earn enough money to pay for their children’s education. Janet decides to try and start her own business by rearing chickens to sell. She knows how to do it and her uncle gives her a loan of K40, 000 to start the business. However, before she buys the chicks, someone tells her that there is a huge demand for sunflower oil because of its lack of availability in the market. Traders are knocking on the doors of local farmers asking them to produce it. Thinking she can earn a lot more money from pressing sunflower seeds for oil, Janet changes her business idea and starts an oil pressing venture. Janet has never grown a large quantity of sunflowers. She spends all the money from the loan to buy seeds, fertilizer and the oil pressing equipment. Since she uses most of the family farmland to grow sunflowers, there is less land to grow maize and vegetables for the family to eat. The chemicals from the fertilizer begin to make her children sick. She now has to buy more food for the family. It takes a lot of time and effort to process the oil, so, Janet has to employ someone to help her. A lot of other farmers have started growing sunflower seeds too. Therefore, by the time her oil is ready to sell, the market is already saturated with the good and Janet cannot find a buyer. To reduce her losses, Janet has to sell the oil at a very low price to a local shop. As a result, Janet makes very little money and she is not able to pay back the loan. TASK What is wrong with Janet’s business idea? Identify and explain the five things which were wrong about Janet’s business idea.

Answer 1

Answer:

OMG!!!!!!!!!!! is this a question ?

Answer 2

Answer: I think is probably this part is wrong Janet decides to try and start her own business by rearing chickens to sell. She knows how to do it and her uncle gives her a loan of K40, 000 to start the business. However, before she buys the chicks, someone tells her that there is a huge demand for sunflower oil because of its lack of availability in the market. Traders are knocking on the doors of local farmers asking them to produce it.

• Explanation: Because husband works in a nearby mine but even though both of them have jobs, they do not earn enough money to pay for their children’s education. Janet decides to try and start her own business by rearing chickens to sell. they don't have many to buy something and her wife traying to take a job to do.