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Requirement 

Keeping in view the above mentioned scenario, you are required to answer the following questions.

1. Are the current economic conditions of Pakistan conducive for Small and medium enterprises?

Give at least 5 arguments in the favor of your answer.                                                    (5 marks)

 

Answer:-

The current economical conditions of Pakistan are not suitable or conductive for small and medium enterprises, because:

 

  1. Inflation:-

 

In Pakistan economy, inflation is increasing is increasing day by day due to price of raw materials and labor increasing which affect consumer purchasing power.

 

  1. Less number of Buyer:-

Due to bad economical situation and increasing inflation, there are not large number of buyer in markets which mostly affect medium business and enterprises.

 

  1. Unsuitable social, economical and political situation:-

Unsuitable social conditions such as terrorism attacked, bad economical situation such as increasing rate of inflation and uncertain political situation such as strikes and shutter down are all dangerous for both small and medium business. 

 

  1. No involvement of E-commerce

 

In Pakistan the ratio of E commerce is very low specially in small business whereas so many medium size business uses e commerce but this has not been prove profitable for such enterprises because of manual purchasing customer nature.

 

  1. Increasing tax rate

 

Increasing tax rate affect every single type of business in Pakistan.

 

 

Question:

2. In your opinion, being an owner of a small firm, how Mr. Malik Amjad can face the challenge of rising cost of doing business?       

 

Answer: Question:
2. In your opinion, being an owner of a small firm, how Mr. Malik Amjad can face the challenge of rising cost of doing business? 

Answer:-

Mr. Amjad can adopt following techniques while doing his contracts:

this is just idea make extensions of the points given below:

• He should incorporate price protection clauses while making contracts.
• He should delay the manufacturing process until the prices reduce.
• He should make contracts with other small firms owners 
• For financial feasibility
• method of reducing the staff(Downsizing)

You should search some references for the economic condition of the country and about the hiking prices from the web.... Thankx..!! 
 

 

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Replies to This Discussion

IDEA:

The current economical conditions of Pakistan are not suitable or conductive for small and medium enterprises,
because:
1. Inflation:-
In Pakistan economy, inflation is increasing is increasing day by day due to price of raw materials and labor
increasing which affect consumer purchasing power.
2. Less number of Buyer:-
Due to bad economical situation and increasing inflation, there are not large number of buyer in markets which
mostly affect medium business and enterprises.
3. Unsuitable social, economical and
political situation:- 
Unsuitable social conditions such as terrorism attacked, bad economical situation such as increasing rate of inflation and uncertain political situation such as strikes and shutter down are all dangerous for both small and medium business.
4. No involvement of E-commerce
In Pakistan the ratio of E commerce is very low especially in small business whereas so many medium size business uses e commerce but this has not been prove profitable for such enterprises because of manual purchasing customer nature.
5. Increasing tax rate
increasing tax rate affect every single type of business in Pakistan.
Question 2:-
2. In your opinion, being an owner of a
small firm, how Mr. Malik Amjad can
face the challenge of rising cost of
doing business?


Answer:-
Mr. Amjad can adopt following techniques while doing his contracts: (this is just idea make extensions of the points given below)
• He should incorporate price protection clauses while making contracts.
• He should delay the manufacturing process until the prices reduce. 
• He should make contracts with other small firms owners
• For financial feasibility
• method of reducing the staff
(Downsizing)
You should search some references for the economic condition of the country and about the hiking prices from the
web....

1. Are the current economic conditions of Pakistan conducive for Small and medium enterprises? Give at least 5
arguments in the favor of your answer. (5 marks

Answer:-
The current economical conditions of Pakistan are not suitable or conductive for small and medium enterprises,
because:
1. Inflation:-
In Pakistan economy, inflation is increasing is increasing day by day due to price of raw materials and labor
increasing which affect consumer purchasing power.
2. Less number of Buyer:-
Due to bad economical situation and increasing inflation, there are not large number of buyer in markets which
mostly affect medium business and enterprises.
3. Unsuitable social, economical and
political situation:- 
Unsuitable social conditions such as terrorism attacked, bad economical situation such as increasing rate of inflation and uncertain political situation such as strikes and shutter down are all dangerous for both small and medium business.
4. No involvement of E-commerce
In Pakistan the ratio of E commerce is very low especially in small business whereas so many medium size business uses e commerce but this has not been prove profitable for such enterprises because of manual purchasing customer nature.
5. Increasing tax rate
increasing tax rate affect every single type of business in Pakistan.
Question 2:-
2. In your opinion, being an owner of a
small firm, how Mr. Malik Amjad can
face the challenge of rising cost of
doing business?


Answer:-
Mr. Amjad can adopt following techniques while doing his contracts: (this is just idea make extensions of the points given below)
• He should incorporate price protection clauses while making contracts.
• He should delay the manufacturing process until the prices reduce. 
• He should make contracts with other small firms owners
• For financial feasibility
• method of reducing the staff
(Downsizing)
You should search some references for the economic condition of the country and about the hiking prices from the
web.... Thankx..!!

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