Wednesday, 31 August 2022

Six most important functions of the entrepreneur concerning economic development

 The entrepreneur is the most important person who organizes the production process in the business. Other than this function, all other resources such as land, labor, and capital are not used effectivelyThese resources are not able to invent any product without the guidance of the entrepreneur. The entrepreneur gives shape to other resources that exist in nature. Otherwise, these available resources can not invent any innovation on their own. So it is said that absence of entrepreneur intervention, every plant would remain a weed and every mineral would remain a rock. It is not only important for the business but also for the economic development because the entrepreneur is the key who uses their mind for creativity and generating income for the survival of own and contributes to the national income also. There are lots of functions that are performed by the entrepreneur for economic development. Let us discuss them one by one. 

Contribution to gross domestic product   


The entrepreneur increases the gross domestic product of the nation. The GDP is the most important factor for economic development. Businesses are the sources that generate income for the economy as well as themselves as production. Organizations can produce goods and services by using many resources. As we know income generated is distributed among the factor of production where the land gets rent, labor gets wages and salaries, capital gets its interest and residual income accrues to the entrepreneur in the form of profit. The rental income is generated by those who have the land and capital respectively whereas larger masses are destined to earn their income via wage employment. The biggest income generated by the entrepreneur is investing the large capital and generating employment for the other. This is the most important way that grabs attention as a function performed by the entrepreneur. 


Capital formation


The entrepreneur can take decision ability that helps to maintain capital formation. Entrepreneurs can decide on the investment of capital in the right way for production and other investment that will help generate income. Gross domestic production and capital formation are related to each other by the capital-output ratio. The capital-output ratio is calculated on production and capital. The capital-output ratio is the tool for measuring the capital increment for example if we have savings and we invest in a friend's business then that contributes to the process of capital formation. Almost every business raised funds from the banks, financial institutions, and capital markets the maintain the cash flow along with providing more services to citizens. 


Generating employment opportunity   


Every business gives opportunities to people for employment with different abilities, qualifications, and skills. The entrepreneur became the source of the generating employment opportunity for people who do not have land for rental income and interest on the capital. People earn money from this employment for maintaining their live hood and lifestyle for their satisfaction. An entrepreneur is a source that is related directly and indirectly to the people employing them. 


Generate another business opportunity for other people     



Every business creates room for other businesses because of the reaching audience's process there are several businesses includes. The new business gives chance to other suppliers to provide information and the marketers of the output. As we business are related to each other for example a manufacturing company is related to another business that provides material for the manufacturing business and the manufacturing business provides products to a wholesaler, and the wholesaler business is related to the retailer, this chain creates the business opportunity for others also. These immediate linkages induce further links also and crate several business lines for the other people. 



Improvement in economic efficiency and activities  

Efficiency refers to having generated output from the same input. Entrepreneurs improve economic efficiency by adopting an innovative process of production and reducing wastage and increasing profits. 


On other hand, technological development is very important for an improved product. Id the business higher ability labor that will also help increase in the production for business and they provide their best services to them for the improvement of the production process. 



Increase the scope of economic activities



Development does not only related to more and better services provided. It also means the diversification of the economic activities at the geographical level. As we know there are several undeveloped nations are playing very important roles in diversification because they can be in good demand as well supply side. Economic activities balance the demand and supply, because business is trying to meet the demand of consumers, and supply is important for completing the demand.


On the other hand, liberalization is allow businesses to break the border briar. Entrepreneurs are using different technology the increasing the productivity of the nation and they use local resources and over sea resources as well.



The other point is, that entrepreneur leads the process of economic development by bringing about sectoral changes. People must be aware that as economy growing rather than agriculture. Businesses are promoting renewable energy more than limited resources for the production of goods and services.   

      

 

 

 

         

    

 

How the Ukraine and Russian war destroy the world financial markets

 This conflict is a major blow to the global economy that will hurt growth and increase inflation in the world. The Russian invasion of Ukraine harms not only the global economy but also kill millions of people who became homeless. The global financial market is also facing a lot of crises because of the war. People face financial crises in daily life because of three reasons first is the higher prices of food and energy gas prices. Second is when two neighboring nations are doing war that will create a grapple in the economy and create disruption in the trade, supply chain, and surge in the refugee flows. The third is the reduced business confidence and high investor uncertainty, which tightens financial conditions and affects capital outflow from the emergency market also.  

Over the six months of the Russia and Ukraine war in what Moscow calls it that it is a special military operation, in this military operation thousands of people kill and millions of people were homeless and the world is facing the worst situation after the cold war. It has also affected the global financial market into much turmoil which is listed below. 


Recession fear 


During the time Russia's invaded Ukraine, that time whole world had fear of economic recession. Many nations face inflation in the prices of energy gas, food, and other essential commodities. This situation is very critical for the household and industry, more than trebled since June alone on fears Russia will cut off its supplies, which will lead to energy ration in some economic. Several nations also face different hurdles because of the conflict. 


However, the European central bank, the bank of England, and other bank are tried to crush inflation effectively and spiraling energy costs are fuelling. On the other hand, the interest rates of bank interest squeeze households and companies also struggling with rising costs. 


The world economy was going down during the war between Ukraine and Russia because the world faced a shortage of fuel. Russia is one of the important sources and exporters of oil in the world. Thus, the demand for fuel is increased and the supply of oil is decreased which would impact the prices of the fuel.  


Growth pain 


This is the second major reason for the rattling of the global economy. The world economy had been going down during the war. The reason is, that both the nation Ukraine and Russia are key export of wheat and corn. Russia's invasion was the reason for broken of the supply chain creating the wheat shortage in several nations. During the Russian invasion, the average price of wheat increased. This impacts the global income and affects the per capita income of the person. 


The second main reason for decreasing growth was an increase in fuel prices. Several nations were highly dependent on Russian oil. The oil shortage affects the world's fuel prices and hit the highest prices of fuel in the world. 


Inflation palpitation 


The surge in energy and food prices, in the combination with the post-pandemic situation, is the reason for inflation. The supply chain was affected during the pandemic period and the little recovery post-covid-19 situation then the war impacted again the supply chain. In recent years, the world faced the highest rate of inflation around the world after 1970. This time rate of interest also impact inflation and the cost of borrowing was high and worries increased for default in the payment. Economies are not able for maintaining liquidity in the financial market. This impacts a lot the growth of the nations.  


Impact on currencies   


This impacted the currencies of the nation the euro is down more than 12 percent so far this year. This thing reflects the view that further cuts in supplies of Russian gas will hit the particularly hard major euro-zero economy that is dependent on it. There are several nations currencies like Germany and Italy also impacted by the Russian invasion. The Indian currency is going down persistently. 


Shortage of gas 



The world faced a gas shortage Russia invaded Ukraine. The prices of gas would increased during the war. There are several sanctions also imposed on the trade with Russia which is the reason for the shortage of gas. Russia is one l of the largest exports of gas in the world. if the nations do not trade with Russia that will impact the national income along with the growth of the business. 

Russian gas flows through the major pipeline to Europe that was cut around 75 since the start of the year leading to accusations by top European politicians. Russia holds 40 percent part of the gas in the world before the invasion. 



Affects the chemical and car parts  



Chemicals and gas are very important in the manufacturing the electric vehicle. There are several chemical companies also suffering from the Russian invasion of Ukraine. The manufacturing of chemicals declined a lot. It will impact the production and prices of the vehicles. Car part makers companies were also hit hard, partly because Russia is a major market for such as VW and Mercedes. It impacts the car market a lot.  

There are several companies stopped the production and shares prices of companies hit hardly recently such European chemical company.

These are major reasons of the financial problems faced by global economy. 

 

 

 

     

    

 

 

Interrelation between the business intelligence and business analysis

 Business intelligence is refers to process of using the information and the large database for managing their regular manage mental operation in organization. The organizers and other authority in the business higher the business intelligence tool for collecting the data regarding for current operation in order to maximizing their work flow in the business. These tools will help organization make more data driven decision for better management. Business intelligence includes work of transactional data, existing and historical. Earlier, business intelligence involves the calculation statics sales, profits, and employees’ attendance reports. But now vendors offer business intelligence as a separate profession that will track internal operation and calculate effectively with proper analysis of workflows such as marketing, sales and support. It includes the data mining, data visualization, descriptive analysis, performance metrics, querying, statistial analytics, and other related tools. Business intelligence is help to respond the consumer grievance by monitoring social media comment, feedback on their websites and support chats and emails and many other options also their. Using these data they can prepare future planning with solving the present problem that facing by the consumers. 

Modern world, there is a lot improvement in the technology. Business intelligence tools drive independent insight generation by providing self-analysis capabilities, secure and reliable platform, and data monitoring facilities. Business can derive  with help of business intelligence automatic way such as information from the spared sheet software, online analysis process, data mining solution, and many more, these tools will help to report the problem and help in effective strategy also.      

Business analysis      

 On the other business analytics are statistical based tools being use for the prosperity and development of business. The business analysts and the data professionals investigate the data for understanding the market trend and consumer demand. Business analytics includes techniques such as data mining, scenario analysis, statistical model, and other also. It will help in analysis data effectively and make strategy for the betterment of the organization. There are several companies offer business analysis tools for analyzing the situation in many sectors such as healthcare, aviation, hospitality, financial accounting, information technology, and other business domains also. Business analysis works for monitoring data and make improvement if any changes occur.

 

 

  

Saturday, 27 August 2022

Feature of planning

 Planning refers to the advanced decision of what to do and how to do it. This is the basic managerial function before doing some thinking. Planning has a very important role in the business. The leader decides on the object and then formulates an idea of how to work on the particular task. This is why planning is closely connected to innovation and creativity. Planning is a tool that creates the bridge between where we are and where we want to reach. Planning is done at every stage of business. It requires taking a lot of decisions because businesses have a lot of choices and alternatives for reaching the desired goals. 

Planning involves a lot of activities such as setting objectives and developing an appropriate course of action to achieve those objectives. Objectives provide direction for all managerial decisions and actions for better operation of the business. Planning provides a rational approach for achieving the predetermined objective and gives direction to convert it into reality. Businesses are operated by a lot of people and people need direction and guidance to achieve the desired goal of business. There are several goals set the target which need to be achieved and against which actual performance is measured. There are several plans and strategies for the different goals for a limited time duration. If the time factor is not considered then the environment may change and the business plan may go waste. 

In simple words, planning is the process of setting the object for a certain period then make a plan according to the object and formulating various courses of action to achieve them and then selecting the best possible alternative from among various courses of action available. There are several features of the planning also included so let us discuss them one by one. 


Feature of planning   


   Planning is the primary function of management because business set their objectives first and then make a plan according to the object and businesses follow a set pattern of planning. The planning function of the management has certain features that are highlighted below. 


The prime object of planning is achieving the goals 


There are several goals in the daily operation of the business for general purposes. But the specific goals are set out in the plans along with the activities to be undertaken to achieve the goals. Since the planning is very purposeful. Planning has no point because it contributes to achieving the predetermined goals of the business. 


The primary function of the management  


Planning is the primary function of business management. All the work is done according to decide a plan. Thus, planning leads to other functions. There are several functions of management interrelated and equally important. This is the reason the planning provides the basis of all other functions. 

Planning is the first tool after deciding the goal of an object that takes step toward the achievement of the goal. It leads all activities that consider the business purpose and any other decided goal.  


Planning is the pervasive object 


This is one of the important features of planning. Planning requires at all levels of management as well as in all departments of the organization. It is neither the exclusive function of top management nor the departmental. Planning is depending on business-to-business, levels of business, and department of business also follow their strategy. For example top, big companies have a planning team that plans for the whole organization, but the middle business plans are departmental level, small business plan for small goals, and day-to-day operational plans. 


Persistence process 


Planning is the persistence process. It prepares for the period for particular goals, may be for a month, quarter, or year also. Planning time is finished the business needs to make new plans for a certain time. It is a continuous process for different goals and objectives. The plan is drawn on the biases of new requirements and conditions. Plans also depend on future goals. Thus the planning continues to process and it makes and implements then we make another plan follow and so on. This cycle is run continuously.  


Plans make for future


Planning evolves by looking ahead and preparing for the future with the best prediction. The purpose of planning is to achieve future goals in the best way with the maximum advantages for the organization. It implies peeping into the future, analyzing effectively, and then predicting with accurately as possible. Planning is looking forward to functioning based on the forecast. Analyzing the future includes a lot of data analysis, collection of relative information, the certainty of any situation, and many other things also impact future forecasting. 


Planning contains the decision making 


Decision-making is essential for planning. There are several options we have for completing one goal business needs to choose an accurate strategy. For selecting the best option we required the quality of decision-making. The planning is required plan the alternative is also available. Planning needs to practice when several options are available then the decision-making experience works in a positive sense and business managers take the best options for their goals. 


Mental exercise


Planning includes a lot of mental exercises such as thinking differently, different point of view on one subject, imagination skills, and other mental work also includes. It is an intellectual activity of thinking rather than doing any thinking because planning determines the action to be taken in the future. However, it requires logical and systematic things for making foolproof planning.        

     

 

 

Friday, 26 August 2022

The supply of rare earth metals turns to green land in a bid to cut reliance on Russia

 Recently an article has been published in New York Times that one of the last worlds last processors of rare earth metals outside china is buying mining rights in Greenland to reduce the dependency on Russia and stabilize the prices. The world faces a disruption in the supply chain after Russia invades Ukraine.

Rare earth metals are very significant for the manufacture of a broad range of modern products, it includes electric cars, smart bombs, offshore wind turbines, etc. demand has increased for automakers this switch more of their production to electric vehicles. Many small companies work for mining rare earth ore around the world and do an initial process like removing the dirt. However, the two commercial-scale factories outside china perform the difficult task of chemically separating semi-processes work and covert the usable material for magnets in the electric car and other applications. There are several nations are taking part in the processing of rare earth metals. Let us discuss it. 

Toronto-based Neo companies by semi-processed ore from Russia, the United States, and Australia do the further chemical process at factories in Estonia and china. Other companies also mine rare earth metals ore in Australia and do the chemical process in Malaysia and convert the metal into fuel for advanced technology.  

Opinions of the Neo company on the acquiring the green land metal 

Several companies give their opinion in the past and present also. let us discuss it one by one. 

  • Neo said last Monday that it acquired rare earth mining rights in Greenland from Hudson resources, a tiny mining company that is based in Vancouver, British Columbia. The acquisition is the first move for mining rare earth metals by the Neo, this step aims to convert rare earth metals into magnetic applications for advanced technology. 
  • Neo Company saw little potential in general motors than in electric cars and disposed of the operation in 1996. 
  • The CEO of Neo company said, that his company planned to start mining and processing ore in Greenland in two to three years and full production will be started in about five years. 
  • The aim of the Neo Company is free from the dependency on the world for metals. The prices is fluctuating wider the commodity. If the little tension in geopolitics then it affects the economy also. the aim is, it want to 100 percent produce its own and 50 percent depend on reliable sources. Having reliable sources of raw material will make it possible to sell the green metal at a fixed rate, and it can adopt several policies for maintaining long-term business such as sing contracts with different nations, agreeing of working together on the same project, making developing electronic vehicles, and many others.
  • The next step for the new company that is preparing to start building a factory in Estonia this winter. That work in this company is to process rare earth into magnets for the electric vehicle. While European automakers also shift production quickly towards electric cars, they offer financial assistance for the creation of the mines to manage to supply chain with Europe for rare piles of earth metal. Although green land is geographically part of North America, it is a district of Denmark that is a member of the EU. 
  • Currently, the Estonia company is purchasing three a fifth of its rare metals from the Russia and rest from Utah. After Russia invades Ukraine the Western nation impose several sensations and other restrictions on companies and export from Russia, but not yet on rare earth metals. 
  • Neo is not the first company that wants to mine green land metals. A few Chinese companies are trying open mines at the southern tips of Greenland several years ago for rare earth metals including uranium. But the project was blocked by local opponents and regulators worried about the risk of radioactive contamination of the environment. Against the neo, the company had 97 percent less radioactive material per ton than the deposit at the southern tip of Greenland. The radiation level is very less than what you would find sitting on granite boundaries besides the oceans in the mine. 
  • The sarfartoq deposit, which is part western coast, is also considerably smaller than one of the southern tips of Greenland. But it had enough rare earth to meet Neos entire world-wise processing needs for at least 30 years and possibly for a century if further drilling at the edge of the deposit confirms further rare earth metals.   
  • Rare earth metals are a group of 17 elements near the bottom of the periodic table, but they all are not radioactive such as uranium and thorium occur naturally in rare earth deposits. 

Several nations are working and some are leaving this business. The chain and Russia are the main separators of rare earth metals in the world. Russia is fourth the largest miner of rare earth metals. The United States and Australia are roughly tied for a second distant second in mining. The further process does in china for different applications. 

Bottom

I hope this article would help you understand the Greenland metals and their importance for the technology. There are several companies are how they are depending on the Russia, but all the world wants free from the dependency.          

 

Thursday, 25 August 2022

Factors affecting the choice of capital structure

 Capital structure is one of the important decisions taken by firms. Capital structure decision is taken under the financial management that is related to the financial pattern or the proportion of using the different sources in raising funds. The funds are categorized into two parts: the first is ownership-biased funds and the second is borrowed funds. Ownership funds is refers to the funds consisting of equity share capital, preference shares capital, reserves, and surplus-related funds. Borrowed funds are related to loans, debentures, public deposits, etc. mostly companies adopt the mixed capital structure for the fianc├ęs of the company. But The decision on capital structure is depend on the relative proportion of various types of funds. Companies should be considered the amount of liquidity for payment of the interest rates and maintaining the outflow and inflow of cash in the business. If the companies are raising funds then they should pay the interest on the principal amount. In this case, the business needs a sufficient amount of cash to manage the outflow of business. Similarly, many important factors determine the choice of capital structure that is following. 

Position of cash flow in the business 


A certain amount of cash flow is required before borrowing. Cash flow is a must for maintaining the fixed cash payment obligation and management of the buffer also. it must be considered by the businesses that they have a sufficient amount of cash in the business for the operation of the business, investment in fixed assets, and for the completing the debts services commitment like paying interest on principle amount and the repayment of the principal amount. So the position of cash flow is very important before adopting any capital structure. 


Interest coverage ratio


The interest coverage ratio refers to the number of times earnings before interest and taxes of companies that shows cover the interest obligations by the business. The method of calculation is. 

Interest coverage ratio = EBIT/ interest 

This shows the higher the ratio, the lower risk of the company of meeting its interest payment obligation. However, this ratio is not only sufficient for measuring because the firms may have a high-interest coverage ratio but a low cash balance. Apart from the interest, there are a lot of payment obligations also relevant.

Debts services coverage ratio


The debt services coverage ratio is linked with the interest coverage ratio. In this ratio, the businesses or firms compare the cash generated by firms and the requirement of cash of operating the business effectively. The operation of a business is related to debts and preference shares. It calculates as follows 

Profits after tax + deprecation + interest + non cash exp. / preference share dividend + interest + repayment obligation. 

Debts services coverage ratio shows the ability to meet the cash commitments; the company has the potential to increase dept components in its capital structure.

Returns on the investment ratio  

If the return on the investment is high then the businesses or companies can choose to use the trading on equity for increasing funds. Returns on the investment ratio show the ability to raise funds from the equity and preference shares. It attracts people to invest more business for getting high returns. 


Cost of debts 


A cost of debt shows the ability to borrow at a low rate and increase its capacity. Businesses can raise funds from debts if the debts rise at a lower rate. The cost of debts affects the decision of capital structure because it impacts business by the high interest on principle impact the cash flow of business. 


Tax rate 


The interest on the debts is deductible expenses from the profits so the cost of debts is affected by the rate of interest. For example, the firm borrows at 10 percent interest and the tax rate is 30 percent, after deducting the tax the business cost of debts is only 7 percent. Thus this shows that higher tax rates cheap the debts relatively. 


Cost of equity 


The investment of equity is always depending on the returns of the company or business. If a business wants to raise the funds through equity then the returns of the business will affect investors. Stocks owners expect a rate of return from the equity against of risk they take or assume. If a company increased debt risk then it should increase the risk of shareholders also. Simultaneously, it increases the desire for returns also. It is for this reason that a company cannot able to take debts beyond a point. 


Floatation cost


There are several cost effects in process of raising resources that also involves some cost. There is a lot of expenditure incurred while the public issue shares and debenture. Getting a loan from a financial institution may also involve some costs. This is a considerable fact when choosing the capital structure. 


Risk consideration 


This is also an important factor that affects the business for adopting any way of capital structure. We discussed above that if the business increase the debt risk then it will increase the financial risk also. Financial risk refers to a position when a company is not able to complete its fixed financial charges like interest payments, dividends, and any other payment obligation. Rather than financial risk business has some operational risk as well. If the business has a higher fixed operational risk then the higher business risk and vice-versa. The total risk of a business or company is depending on the financial risk and operational risk of the business. So business needs to consider risk factor before choosing any capital structure.     

 

Fast track career in data sciences with a degree from Germany

 According to the world economic forum, the future of work report 2020 estimates that the demand for data scientists will be the highest by 2025. The demand for professional data scientists and cloud computing is the most demanded skill. It is predicted that 70 percent of organizations will focus on small and wide data by 2025. Worldwide, organizations focus on methods to harness and organize data for their strategic purpose and goals. 

Data scientist extracts information from the unorganized data by several methods and provides the information to the business or other organization for their purpose. It also restructures big data with analytical, technology, and scientific skills. The application of the data is very wide because of the requirement of data scientists across the industry; it is not just limited to technology. So there is no surprise that a report by the US bureau of labor statistics shows that jobs for data scientists will increase by millions in the opening of 2026.  

This figure can be true when people take the specific degree of data scientist, whether as a specialty or a value added to another major for their career. There are many colleges or university that offers data science and various analytics courses along with statistics, computer science, and information sciences degrees also. so here we will discuss the degree of data science in Germany, how it is help full for the students, and the growth of data science degrees in Germany also.


Data science from Germany and scope 


It provides an international reputation for the world-class faculty along with Modern infrastructure. German universities equip students with a depth understanding of modules like applied statistics, practical machine learning, the system of the database, data preparation, decision analytics, etc. which all are used commonly for business. 

On the other hand, as per the world university ranking subject, four universities in Germany are in among the top 100. According to us news & world report, the research-intensive curriculum put the German education system reserve rang of top three at world level. 


Students of Germany can pursue a career in data science at both master's and bachelors levels also. The university offers many career opportunities like machine learning, artificial intelligence, big data management, applied data science, mathematics in data science, and other opportunities also exists. Germany university is very beneficial because they have an excellent connection with the big companies like Allianz global investment, ERGO, airbus, etc. these businesses offer a good opportunity for the student to acquire advanced skills. 


According to several statists, German companies specializing in market and consumer data collection, the companies higher 50 percentage data scientists in 2020 to 2021. Many companies are promoting the hiring of data science experts for business operations also.


Relevance across industries 


The application of data science has expanded to various industries at a worldwide level. Starting with the banks and financial sector, these sectors understand the power of data science. But for now, every industry can take advantage of data science like media, healthcare, manufacturing, retail, advertisement and market, and others also. 

Further. It is expanding the scope of data science like meta-environment. The met averse is about the shopping experience, where the data entered by individuals shapes their shopping experiences and then business analysis data by data scientists. Businesses can use these data for making the brands of their products also. data science plays a vital role in various businesses and transforming the met averse. Businesses like Amazon and Netflix are also leveraging data to offer a customized experience to their consumers also. 


The value of data science is also extending to establishing the producer to the consumer directly. The alphabet is used as its algorithmic advantage to push Google ahead of the older research engine competitor. Ti is also used for business to the next level for example autonomous vehicles. Apple brand use data in a unique way like it is used for the infrastructure edge, and product platform to enter the finance domain with apple pay. Today, transactions produce valuable information, and acquiring the skills to comprehend various ways and data will leg - up business. 


The career path of data science 


There are five big tech companies Microsoft, Amazon, Google, Apple, and meta, these use data science in various ways. Data science plays a vital role in these companies. the higher the biggest employees of data science engineers and scientists. 

Right now, the data science field has gained huge popularity among young professionals. There are some profiles of data engineers, data scientists, data architects, computers and information research scientists, data analysts, and machine learning engineers. 

The average salary for data science is 66000 in German currency. But the average earnings of a data scientist are continuously increasing. The scope of a career in data science is increasing worldwide in prospect of earning, position, and living standards also. 


Bottom lines 


Evaluation of technology is increasing every day and the generation of huge amount opportunities also increasing for the data scientist. we discussed the scope of data extends to every business line. Data science education is also expended in various ways like deep learning, artificial intelligence, the internet level, and the uses of data science in various ways. The globe is focusing on data science education because it will become a very important part of business in the future.       

 

 

Six most important functions of the entrepreneur concerning economic development

  The entrepreneur is the most important person who organizes the production process in the business. Other than this function, all other re...