Page 24 - Business Studies
P. 24
Business Studies for Secondary Schools
Microfinancing and cooperatives in Moreover, cooperatives provide access
facilitating business formation and to markets that business owners might
operations struggle to reach independently. Working
Microfinancing and cooperatives are together, small business owners benefit
essential in facilitating the establishment from shared marketing efforts and
FOR ONLINE READING ONLY
and operation of small businesses, distribution channels.
especially for those who lack access to In general, microfinance and cooperatives
financing.
contribute significantly to the development
Microfinancing of entrepreneurs by providing appropriate
Microfinancing refers to financial services financial assistance, valuable resources,
training, and a market for small business
offered to low-income individuals, products.
groups or small businesses that may not
have access to conventional banking Activity 2.6
services. Microfinance provides small
loans, mostly to unemployed or low- Visit at least one microfinance institution
income individuals, including small and one cooperative operating in your
business owners, without access to locality (if any) or search from various
regular banking services. The loans can sources, including online, to understand
be used to start or expand a business, what they do for small business
purchase equipment and materials, or development. Compare the responses of
meet other financial needs. By providing each one and write a short report to show
these financial supports, microfinancing the differences or similarities between
enables business owners to establish and the two.
grow their businesses.
Cooperatives Exercise 2.2
Cooperatives are organisations owned 1. How does microfinance support
and operated by people with common small business start-ups, and what
interests or needs. They provide various benefits does it offer entrepreneurs
benefits for business formation and in pre-financing and starting their
operation, allowing members to pool small businesses?
resources when purchasing equipment 2. Given TShs 300,000 as a loan,
or marketing products. In addition, develop a plan for utilising the
cooperatives offer training opportunities funds to start a small business of
and support services that help business your choice. Then, state how you
owners develop their skills and knowledge will use the given fund and how you
in running their businesses. plan to repay it.
Student’s Book Form Two 18
03/10/2024 16:07
Business Studies Form 2.indd 18 03/10/2024 16:07
Business Studies Form 2.indd 18
