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The situation has changed, however. Nowadays there are many opportunities for anyone who wants to be his/her own boss.

Experience from right across the world, however, has taught us that seven in every ten (70 %) of newly established business concerns fail within the first year!

Some economic principles

  • Primitive communities

People have inhabited the earth for a very long time. For most of their existence, they have survived together in small groups of 20 – 30 persons. This is because few people survived the cold and dangerous circumstances of early times. The groups were like extended families and they shared almost everything they possessed. The leader of each group determined what each of the other members of the group had to do. This largely stifled all own initiative.

  • Right of ownership

In time, however, certain communities came to grow in numbers and became wealthy.

Why did only some communities begin to develop after such an extended period of primitive life?

Some historians ascribe this to the principle of right of ownership. In certain communities, individuals were encouraged to own private property and thereby became better off. As soon as such a person has his or her own property, he or she is the owner of such property and is able to decide how to dispose of it without needing permission from anyone else in the group.

It soon became evident that owning property affected the attitudes of the owners.

Activity 2:

To choose the correct statement and motivate your choice

[lo 1.1]

Select the correct statement:

As soon as people are allowed to retain what they earn or produce, they generally are willing to work harder.

As soon as people are allowed to retain what they earn or produce, they generally become lazy and unwilling to work harder.

What is the reason for this situation?

How do you think the right of private ownership will affect the attitude of most people towards a new opportunity or business?

Activity 3:

To find a solution for the typical problems of bartering

[lo 1.3]

  • The price system

The various communities quickly realised that knowledge and products within their own communities did not comprise all the knowledge and products that were available and that different communities needed one another for a wider range of products. This introduced bartering . But it often was impossible to exchange one article for another in the barter system. A cow obviously could not be exchanged for a bar of soap, or a loaf of bread, or fruit, even! And you could not divide up a cow!

Can you suggest a solution to this problem?

Initially, people considered the use of commodities such as salt, which could be broken up into smaller pieces/quantities and used in bartering for smaller quantities of other products. Soon the value of silver also became apparent – especially as it was always in demand as far as everyone was concerned.

These commodities used for barter became known as money . In this way, a price system was developed. The price paid for an article gave the producer an indication of the needs of the consumers. Those in the textile trade, for instance, knew that there was a great demand for textile fabrics by noting that the prices paid for textiles were increasing. The price obtained for an article therefore indicated what producers needed to produce in greater or smaller quantities.

Questions & Answers

I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
How we are making nano material?
what is a peer
What is meant by 'nano scale'?
What is STMs full form?
scanning tunneling microscope
how nano science is used for hydrophobicity
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
what is differents between GO and RGO?
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
The nanotechnology is as new science, to scale nanometric
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
what school?
biomolecules are e building blocks of every organics and inorganic materials.
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
sciencedirect big data base
Introduction about quantum dots in nanotechnology
Praveena Reply
what does nano mean?
Anassong Reply
nano basically means 10^(-9). nanometer is a unit to measure length.
do you think it's worthwhile in the long term to study the effects and possibilities of nanotechnology on viral treatment?
Damian Reply
absolutely yes
how to know photocatalytic properties of tio2 nanoparticles...what to do now
Akash Reply
it is a goid question and i want to know the answer as well
characteristics of micro business
for teaching engĺish at school how nano technology help us
How can I make nanorobot?
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Economic and management sciences grade 7. OpenStax CNX. Sep 10, 2009 Download for free at http://cnx.org/content/col11025/1.1
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