micro business.doc

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Vision of the enterprise

The association would like to see the fulfillment of their members basic

needs and well developed society.

Mission of the enterprise

The interested group [parties] aimed to collaborate willingly their knowledge,

money and all resources in order to minimize their socio-economic

bottlenecks with association procurement and other service rendered.

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SOURCE OF THE BUSINESS IDEA

They had saving their money when they work before they start new

business and credit association in their working environment and the money

they saved became grow over some period of time. This accumulated money

enforced all of the members to come up with new business idea. Their idea

was why do not we start a new business with the money we have in our

account today? then this idea was accepted by all member and with this idea

the business established on tikimt 2004 with the name of SAMI

AGRICALTURAL EQUOPMENT TRADING

NUMBER OF EMPLOYEES INVOLVED IN OPERATING

AND MANAGEMENT ACTIVITIES

At the 1st year of their operation the association had no any recruited and

hired employee, all the front runners of the business were four people out of

the members who based on their willingness. This was from megabit 12/

2003 hidar 1/2004. Starting from hidar 1/ 2004 on wards they hire

employees. Today, the business has 21 employees and 8 members.out of the

8 members the 29 employees are collage graduated students (accountant,

service providers).

The association had around 8 area shops spreading over 4 different kebeles

and villages at convenient sites and three stores for commodity distribution in

Maichew. In order to address the increasing need of commodity distributed

service on fair price the association has expand its service in Maichew, in

addition to the former once.

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SERVICES IT GIVES

This association operating in Adama, that it has made it possible for its

corporate customers to provide door to door genuine and fair service on fair

price at the time of their need for goods delivery of their demand. Besides

this, the business makes its customers profitable for those who take more

goods and sell in their own shops.

Normally, today the association sales different imported consumption

commodities and local farm products such as Teff, Barley, and Wheat etc to

the society in Adama town in different kebeles, the association render credits

sales service to its member. The association was not commenced from the

protective of business concept to minimize the daily routine problem of the

members financial difficulties. So the members save their money.

THE AMOUNT OF CAPITAL THEY HAD INVESTED

The business was established by the capital of birr 54,000 that was

contributed by the members of enterprise. Out of this birr they loan the

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20,000birr from a bank and they contributed the 44,000 birr for each 4,000

birr who are total of 8 peoples.

CURRENT CAPITAL OF THE BUSINESS

Current Asset

Today this business is growing up and have over birr 10,000,000 of current

asset

Fixed Asset

1. Their estimated fixed asset is birr 3,600,000. Totally,their total capital is birr 6,600,000.

PROFIT CONDITION OF THE BUSINESS

Today this business gets profit above 110,000 birr per month excluding

workers salary. They have two FSR cars to transport their goods from these

cars they get minimum of 520,000 birr per month.

CHALLENGES OF THE BUSINESS OR

CONSTRAINTS

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Their first major difficulty they faced when starting their operation was

lack of sufficient initial capital. According to their responses, this problem

has become more critical when they intend to expand their businesses. The

other problems they faced later were:

1. Shortage of information of goods in a current market

2. Shortage of supply of raw materials

3. Lack of interaction with the same other business

4. Lack of working experience

5. Marketing problems

6. Credit problems

Marketing challenges as I have said earlier the workers of this

association were among the member of the association, as they are

fresh for these kind of business, they had lack of experience in serving

their customers. And also the abnormal competition or negative images

of the competitors were their core challenges.

Financial challenge the shortage of money was the main challenge

of their business and their vision. Because of these problems they

were unable to run their business as their need, especially at the time

they opened the first shop they were suffered from working [starting]

capital problem.

Management challenges the main challenges of the management

were image building, coordinating the workers, creating awareness

about the business and other related bottlenecks.

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The association overcomes so many difficulties and challenges by taking

different courses of action, such as, providing their member experience

share with similar association, incentive to their employees and

awareness.

OPPORTUNITIES AND THREATS THEY HAVE

IDENTIFIED

This enterprise identified something considered as opportunities and threats

but for the matter of their business secrecy they keep silent while a group

asked them to disclose about their opportunities and threats, in general.

Strengths and weaknesses of the business

Strength: 1.they have co-operative workers

2. They come all the goods on time

3. They put all of their business in market

Weaknesses: they dont have information about the current goods need to the

customers (they dont study the need of the customers).

Conclusion

Nowadays, the groups were within a normal program to run their

business. They get all things what they want in their daily works by making

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their workers initiative and willing to do over a long time ,even also they are

more profitable since as they grow up/develop their potential to solve the

problems/challenges i listed above. In my opinion to have a good business

you must face many problems and you must tackle/overcome all these

problems, and it is that after this a successful business will come.

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