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Monday, June 5, 2017

Forms of Business Organization

THE SOLE PROPRIETORSHIP - This is the easiest and smallest form of business organization. It is a small company or firm owned and managed by one person - the sole owner/proprietor.

1. The sole proprietorship has no boss. Therefore, the owner is his own boss.

2.  Quick Decision making : This is made possible because he does not consult an external body before making decisions.

3.  He can easily adjust to changing business trend.

4.  Self-interest : A sole proprietor is out to make profit therefore work hard for more profit.  In other business set, this incentive might not be taken on a serious note.

5.  It is easy to set up, organize and maintain as initial capital requirements is relatively low.

6.  The sole proprietor can combine one or more business at the the same time example trading and farming.

7.  The relationship between the sole proprietor and his worker and customers is always very cordial and personal.

8.  There is secrecy and privacy in the one man business as his account is not subjected to public scrutiny.

9.  The demand for certain commodities can only be possible with the establishment of small scale industries.

10.  In most cases, raw materials do not inhibit production hence the sole owner can obtain his raw materials locally.

1. He doesn't get easy access to sufficient capital.

2. The death of the owner ends the business since his children may not be able to carry out the business effectively.

3.   Division of labour is not effectively practiced in a one man business,  thus throwing away its numerous advantages.

4. Small volume of production is usually the case, since large scale production is not possible due to the small nature of the initial capital investment.

5.  The privilege of limited liability is not enjoyed by the sole trader. If the business fails, he might sell his personal property in other to settle debts.
6. He cannot employ well trained staff such as Accountant, Engineers, Architects etc who can manage the business effectively. All these can not create rooms for rapid and progressive development.  
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Problems Of Agriculture In West Africa

Like we've earlier explained in our last topic Agriculture in West Africa, just in case you missed it here's the link Click here 
So haven't read that, here are the Problem Of Agriculture In West Africa
1. Crude implementation : Most farmers in West Africa still use very crude agricultural implement like cutlasses, hoes, spades, and knives. This leads to poor yield and health risk cause it's consume a lot of strength from them.

2. Traditional Method of farming : Farmers in most cases have conservative attitudes and are also unwilling to adopt modern methods of farming.

3.   Land Tenure system : The land tenure system in most parts of West Africa makes it very difficult for a person to obtain a large piece of land for modern large scale farming.

4. Lack of Good Road : This we all know that in Africa especially in Nigeria there is poor network of road thereby making it difficult to transport foodstuffs, especially raining season.

5.   Poor Storage Facilities : During periods of harvest, food is plentiful, but there are no facilities to preserve the food for future use.

6. Illiteracy : Most West Africa farmers are illustrated, As a result of this, they cannot follow and accept simple instructions given to them by extension worjers/services.

7.   Sociological and Psychological effects of being called a farmer : Farmers are regarded as the people of the lowest status or class in the society. So people don't like being called a farmer.

8. Migration From Rural Areas : Young people now drift to urban areas in search of white collar Jobs. Old people are left in the rural areas to produce crops. Hence low yield is obtained.

9. Natural Hazards : Too much rainfall or lack of it is another problem that face the West African farmers.

10. The rapid decline of soil fertility due to leaching and incessant Bush burning throughout West Africa.

Now that we have highlighted the problem let take a look at the ways of improving agriculture in West Africa. 

There are lot of ways of improving West African agriculture but we are going to highlight some. Some of the ways of improving West African agriculture are :
1. Research : Research into West African soil should be carried out to discover improved farming methods, suitable for West Africa.

2. Provision of good storage facilities e.g silos and cold room, to keep fruit fresh for a long time.

3. Construction of new roads and the development and maintenance of the existing ones that link all villages.

4.   Mechanization of farming techniques : Agriculture should be mechanized. The government should aid and promote the use of modern agricultural equipment.

5.  Loan Facilities : More capital should be provided to farmers indeed,  all agricultural credit banks and commercial banks should be more liberal in granting of loans to farmers.

6.  Provision of Social Amenities : One of the most important reasons why the youth drift to urban areas is that rural areas are not developed.

7. The Government must try to stabilize prices of farm produce, this will encourage large scale production of agricultural goods.

8. Enlightenment Campaign like Operation Feed the Nation (O. F. N) and Green revolution aim :- To show that there is dignity in labour and mass education of people.

9. Introduction of land use Decree : Example, Nigeria Land Use Decree of 1978 which declared land as the property of government.

10. Farm Settlement Scheme : This can enhance and motivate young school leaders involvement in agriculture. It is now in full practice in Ogun and rivers states located in Nigeria respectively.

Please kindly drop a comment to encourage us that we've got readers thank you      
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Agriculture is widely practiced in all the West African Countries and statistics evidence shows that over 60% of population of the countries of West Africa are engaged in Agriculture.
Importance of Agriculture 
1. Raw Materials : Many of the raw materials are obtained from agriculture examples timber for plywood industries and cotton wool for textile industries.

2.  Food : it is the source of food for men and animals. Without food,  no nation can survive and it is from agriculture that food is naturally obtained.

3.  Revenue : Agricultural export crops such as cocoa, palm produce, groundnuts are particularly important in this respect.

4.  Employment : Agriculture provides employment for over 60% of the population in West African countries.

5.  Foreign exchange : Exportation of Agricultural crops serves as a major source of obtaining foreign exchange for West African countries.

6.  Rural Income : Most of the people who live in rural areas earned their income mainly from agriculture either through farming or cattle rearing or fishing.

7.  Market : Agriculture also provides market for some industrial goods such as tractors and cutlass

8.  Loan opportunities : Through agriculture, it has been possible for commercial banks and various government to grant small scale loans to the rural dwellers.

Types of Agriculture
Below are the types of agriculture
• Subsistence Farming : When a man produces goods for his own use, his wife and children, he is said to be engaged in subsistence farming. Many peasant farmers in West Africa produces mainly for themselves and their families.  Some of the food crops produced extensively are maize, plantain, yams, groundnut, rice e.t.c

• Cash Crops Farming : Cash crops such as cocoa, cotton, coffee are widely produced in West Africa solely for sales.  We have very rich cocoa farmers in Nigeria and Ghana today.

• Plantation Farming : Thus is the European type of plantation which also produces cash crops. Examples are the banana plantation in Cameron, the Nigerian Oil Palm Research (NIFOR ) near Benin City Nigeria, etc.
It means a system of farming where a single crop is cultivated over a large piece of land. 
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