Geography & History Notes | KCSE, NECTA, ZIMSEC & GCSE

 HERE ARE 12 ECONOMIC FACTORS INFLUENCING THE ENTREPRENEURIAL ATTITUDES AND OPPORTUNITIES 1. Economic policy This defines the market systems established by the government, market structure and the extent to which all the firms compete under fair games rules. An open market system that leaves forces of demand and supply to control the distribution of resources allows entrepreneurship to flourish since it has more rewards for innovators. This allows opportunity identification arising from free entry into national and regional markets. 2. Administrative issues These include the procedural requirements for registration, licensing, taxes and financial reporting which may either facilitate or hinder entrepreneurial activities. Excessive number of rules and procedures discourage entrepreneurs from starting businesses, for instance, most small businesses consider paperwork as time consuming or cumbersome. 3. Infrastructure The availability of infrastructure and utilities such as good roads...

  The Great Economic Depression was a situation characterized by the collapse of the global economy. It started in the Canadian agricultural sector and by 1929, it had spread to Europe and the entire world after the collapse of the Wall Street Stock Exchange Market in USA in October 1929. The European economies were badly hit except Russia which had a communist economy, especially due to the fact that they were just in the post-World War I recovery process. The depression was characterized by mass unemployment, low prices, failure of agricultural markets, closure of banks and other industries leading to the decline in the standards of living. During the depression, there was also widespread violence characterized by riots and strikes, human misery and social-political tensions. Generally, during this period there were many goods but with less money to purchase these goods. THE CAUSES OF THE GREAT ECONOMIC DEPRESSION The effects of World War I of 1914-1918 led to the occurrence of t...

  All units of labour are not homogenous and workers productivity varies. A of labour differs from another in terms of skills, education attainment physical ability. Therefore, efficiency of labour differs from worker to worker, is therefore wrong to assume that all units of labour are homogeneous. Labour tends to be immobile yet the theory assumes perfectly mobility, theory assumes perfect mobility of labour between different employments places. However, labour tends to be immobile both occupationally geographically. Perfect competition does not exist in true market situation. There imperfection in labour markets due to government interference in fixing wages All units of labour are not fully employed as there are cases of unemployment and under employment. There is no full employment situation of labour in developing countries due to excess supply of unskilled labour resulting in some form of unemployment and underemployment. Government usually intervenes in fixing wages yet the ...