ABM 341 - INTERMEDIATE ASSIGNEMENTS 1.docx - ZAMBIA OPEN UNIVERSITY SCHOOL OF AGRICULTURE SCIENCE NAME PAUL GONDWE ID NUMBER 21772487 PROGRAMME BSC-ABM

ABM 341 - INTERMEDIATE ASSIGNEMENTS 1.docx - ZAMBIA OPEN...

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ZAMBIA OPEN UNIVERSITY SCHOOL OF AGRICULTURE SCIENCE NAME : PAUL GONDWE ID NUMBER : 21772487 PROGRAMME : BSC-ABM COURSE TITLE : INTERMEDIATE AGRIBUSINESS MANAGEMENT COURSE CODE : ABM 341 ASSIGNMENT : 1 LECTURER : MR. D. MAMBO PHONE : 0963636568
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YEAR OF STUDY : THIRD YEAR Despite the prominent role of entrepreneurs in creating economic growth, they are frequently faced with instances of official harassment especially in countries with archaic labour laws and lack of proper oversight for regulations and taxation which perpetuate corruption. Entrepreneurs engaged in building new businesses, or in restructuring existing establishments are often pawns in the economic and political environment where they are often forced to shell out hard earned dollars to overcome bureaucratic hurdles. Large companies are likely to have the resources to engage in bureaucratic corruption as a survival mechanism. However, corruption can place a significant burden on a small businesses and entrepreneurs and discourage investments. Corruption is strongly negatively associated with the investment rate, regardless of the amount of red tape , there is evidence that ins tu onal inefficiency causes low investment. Corruption can drive out entrepreneurial skills from the market which is already limited in developing countries such as Guyana. This will result in fewer active entrepreneurs who can seek out profitable opportunities and add to wealth creation in the Guyanese economy. Corruption affects entrepreneurship in a countless of ways. By limiting access to government funds and permits, the government agents reduce participation in some kinds of entrepreneurial activity to their own circle of friends and relatives, or to people who have access to this circle and can get a representative. In this respect, personal relations represent a kind of social capital in scarce supply. Funds and contract are not tied to the best proposals, but to those proposals which have connections within the agency in charge. Resources expended in the form of bribes add to the costs and uncertainty of doing business in a country. Entrepreneurs have to divert limited resources to corrupt officials, while these resources could be invested more advantageously in innovations or expansion. In corrupt environments, more potential entrepreneurs will allocate their time and efforts to noninnovative rent seeking
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activities and lobbying and bribing government officers instead of identifying and exploiting new products, processes or markets and improving productivity. Political stability , or instability, refers to the reliability and durability of a government's structures. The more stable a political system is, the less risk a business operating in that country will face. Nations where there is a high risk of terrorism or internal conflicts are less stable. This makes opening and operating a business expensive and risky in the region. When a country goes to war, this decreases business and it can harm the quality of the currency exchange rate , or the amount the country's money is worth when compared to that of other nations. Thus, less stable
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