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 $400 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.
Reflection question: What is wrong with Janet’s business idea? Why?

Answer 1

Answer:

i cannot understand your quetion plizz explain me properly..

sorry..