Answer the following exam questions Essay Example | Topics and Well Written Essays - 1500 words

Answer the following exam questions - Essay Example and peace process, which led to the spawning of two more radical splinter groups: Continuity IRA (CIRA), and the Real IRA (RIRA) in mid to late 1990s. The IRA, sometimes referred to as the PIRA to distinguish it from RIRA and CIRA, is organized into small, tightly-knit cells under the leadership of the Army Council. The IRA’s militant activities have comprised of bombings, assassinations, kidnappings, punishment beatings, extortion, smuggling, and robberies. Prior to the cease-fire agreement in 1997, the group was involved in terror campaigns in various places in Northern Ireland and England, including senior British Government agencies (and its officials), innocent civilians, police forces, and the Royal military installations. While the rationale for their activities is quite genuine, the group has also attracted criticism for its rigidity. For example, the IRA has not been willing to adopt non-violent methods for pressurizing its oppressive neighbour. For example, the group’s refusal in late 2004 to allow photographic documentation of its decommissioning process was an obstacle to progress in implementing the Belfast Agreement and stalled talks. The IRA is also criticized for funding its operations through criminal means. Every year millions of dollars are added to its coffers through robberies and other crimes. Unless the IRA puts an end to such deviances, its mission is unlikely to succeed. The IRA does not pose a direct threat to Australian citizens or Australian national interests. But in an indirect way, with the refusal of Canberra to detach itself from American and British neo-colonial ambitions, Australia can face a backlash. Already we saw an instance of this in the Bali bombings of 2002. With the IRA’s links with the Palestinian Liberation Organization, ETA and the Colombian militant group FARC, Australia is vulnerable to terror attacks from these organizations, if its foreign policy framework does not change. It is also no surprise

Cocoa Commodity Essay Example for Free

Cocoa Commodity Essay Background Cocoa beans are seeds of the cacao tree, which is a member of the Sterculiaceae family. Contained in a cucumber like fruit; these yellowish, reddish to brownish fruits are divided into five compartments each containing up to 10 seeds (Service). As the fruit begins to ripen, the partitions break down and the seeds are found around the central funicle in a whitish pulp. The cocoa seed (i.e. bean) consists of the seed coat which contains the cocoa kernel. The cocoa kernel is the principal component for the production of cocoa products. There are about 20 known varieties of the Cacao plant, but only two are commonly used in producing cocoa products (Canizaro). The two varieties commonly used are: * High Grade or Criollo Cocoa; which are large, roundish and brown in color. They have a delicately bitter, aromatic flavor and are easily processed. * Common Grade or Forastero Cocoa; which are small, flattened on the side and have a dark reddish-brown to violet color. They have a sharper flavor and account for nearly 90% of the world’s cocoa harvest. The main areas of cultivation of the cacao tree falls within a narrow belt 10 ° north and south of the equator because the trees grow well in humid tropical climates with consistent rainfall and a short dry season (Cadbury). Cocoa trees need an even temperature between 21 to 23 degrees centigrade, with a rainfall of 1,000 to 2,500 mm per year to produce cocoa seeds. The main producers of cocoa are: * West Africa Region—Ghana, Nigeria and Cote D’Ivoire. * South America Region—Brazil and Ecuador. * Asia—Malaysia and Indonesia. Production Process Cocoa trees begin to bear fruit when they are around 3-4 years old. Each tree will yield 20-30 pods per year, each pod containing 20-40 seeds which when dried are the cocoa beans of commerce. The harvesting of the cocoa pod is very labor intensive; workers cut the high pods from the trees with large knives attached to poles. The pods are then split open by hand and seeds (i.e. beans) are removed ready to undergo a two part curing process. The two part process includes fermentation of the bean and then they go under a drying process. Methods of fermentation can vary from country to country, but usually only two methods are used; the Heap method or the Box Method. Here is a diagram using either method to illustrate: Heap Method The Heap Method is traditionally used on farms in West Africa. Wet cocoa beans, including the pulp, are piled on banana or plantain leaves which have been spread out in a circle on the ground. More leaves are the piled on top to cover the heap and it is left for five to six days, turning the pile to ensure fermentation (Cadbury). During this fermentation process the pulp and astringency of the beans are removed as the sugar in the pulp turns to alcohol, which drains away causing the bean to develop its true chocolate flavor. When fermentation is complete the wet mass of beans is dried usually by being spread out on mats under the sun. Box Method In the West Indies, Latin America and in Malaysia the box method is used on plantations. It involves the use of strong wooden boxes with drainage holes or gaps in the slats in the base of the box. This enables the passage of air and the removal of liquid products of fermentation. This process usually takes six to eight days during which the beans are mixed twice. After fermentation is complete the beans are dried by means of special drying equipment. Quality The quality of cocoa is based by the quality of the raw cocoa. Fully ripened cocoa beans that have properly fermented consist of a brown to dark red color and have a very fragile kernel with a bitter flavor. Including the bean’s appearance and odor the beans must also be undamaged, un-germinated and must include no foreign matter or mold. They also can’t be infested with insects or have suffered wetting damage. Nor can they smell sour, musty or smoky. Poor quality cocoa beans that have not been fermented properly are purple in color (under-fermented) or very dark in color (over-fermented). They also have a solid kernel and a very astringent taste. The quality of cocoa beans is assessed according to the following criteria: * Good Qualities * Fully ripe, correctly fermented * Firm beans of uniform size with a dry weight of no less than 1g. * Loose and undamaged shell * Light to dark reddish-brown color * Readily crumbled, fragile Kernel * Bad Qualities * Unripe and poorly fermented * Moldy * Strong violet color as a result of under-fermentation * Purple color as a result of over-fermentation * Firm Kernel * Insect infested * Germinated * Smoky odor due to excessively long drying Mode of Transport After the cocoa has been harvested and quality has been assessed, the product should be shipped shortly after harvest, as extended storage (past 6 months) may result in losses due to the high relative humidities in the tropics. Cocoa beans should be placed in bags of jute or sisal usually of a (gross) weight of 60 65 kg, rarely of up to 100 kg (Service). Cocoa beans can be transported by ship, truck or railroad. When transported in a container, the cargo needs to be in a ventilated container so it is in compliance with lower limits for the water content of goods, packaging and flooring. The wooden flooring of the containers must be absolutely clean and dry. Water content should be 12%, corresponding to a lumber equilibrium moisture content of 70%, so that the flooring does not constitute an additional source of water vapor to dampen the cocoa cargo and container atmosphere (Service). The cocoa beans may also be covered with paper which readily absorbs any moisture. Also given the high value of cocoa, a two layer anti-condensation film should be used to provide addition protection against dripping sweat. Another option is by transporting on flat racks in ventilated holds. This option is a more cost effective alternative to the costly ventilated containers. Uses of Cocoa Primary Use of Cocoa Secondary Use Possible Substitute When people think of cocoa, the first things that may come to mind is chocolate or in the spirit of colder weather, hot chocolate. Chocolate and confectionary sweets are the most common uses of cocoa, but many do not know that cocoa can be a great source for dietary reasons. The processed chocolate bars will not give the same effect for dietary purposes but it has been proven that the darker the chocolate, the healthier it is. Raw cocoa beans are sometimes eaten for their flavonoids which according to studies conducted by Eric Dung can improve cardio vascular health. North America has undergone many changes in the last decade especially placing an emphasis on healthy living. Cocoa has been proven to help lower cholesterol, reduce blood pressure, and reduce the risk for heart disease according to Suzanne Steinbaum; director of women and heart disease at Lenox Hill Hospital. Cocoa also reduces cravings for those attempting to diet and want to reduce the amount of food one may be eating. The smell of cocoa is so rich and aromatic that it actually helps satisfy hunger cravings. Cocoa can help repair skin as well according to dermatologist Ava Shamban, MD. Cocoa is loaded with antioxidants that help repair skin cells and neutralize harmful radicals. Cocoa has also made its way into pharmaceuticals. The oils extracted from cocoa beans become a solid at room temperature but melts within the body so this oil has been used to encapsulate certain drugs. Cosmetics have also found the wonders of cocoa. There exists within cocoa a natural compound that naturally prevents anything it is used with from becoming rancid. Makeup and soaps use cocoa in their products to keep the product from spoiling and can last for years. Demand The demand for cocoa has increased from new markets for cocoa products and increased sales in existing markets. The reduction of tariffs to places like Korea and Peru make it easier to compete in the market to hold and increase market share. Other influencing factors include the climate to grow cocoa, resources, technology and sustainable practices in parts of the world with little to no education. There has been a lot of attention given to child labor practices and the need to improve the process and quality of life of cocoa farmers. As sales have increased over the years, cocoa yields are not growing fast enough has motivated big chocolate manufactures to protect their interests and invest in the future of cocoa. Chocolate sales reached over $100 billion in 2011. While sales have been increasing the disparity between cocoa yields and the world’s need for cocoa will only be exacerbated if nothing is done. Farmers face various challenges in growing this crop that directly impa ct their ability to meet demand. The World Cocoa Foundation states that farmers are dealing with aging trees that aren’t producing as much as well as a loss of 30 to 40 percent of their crop due to infestation and disease. These aren’t big industrialized farms that one can see in America; almost 90 percent of cocoa comes from small farms in Africa, Asia and the Americas. For these farmers to help reach the demand for manufacturers active involvement from these companies is needed to ensure sustainability. According to the Fair Trade Foundation the demand for cocoa has been rising approximately 3 percent a year for the last 100 years (3). Production for the 2011/2012 grow season was 3,987 million tons (World Cocoa, 2). By 2020 there will be an estimated 1.5 million ton shortage of cocoa (Bloudoff-Indelicato, Climate Wire, 1). One of the reasons for the increase in demand can be attributed to the rising wealth in China. According to Agrimoney.com there has been a â€Å"growing shift towards Western-style diets and cocoa powder-based products such as ice creams, biscuits and other confectionary†. As the country’s lifestyle and culture changes with the increase in disposable income, the middle class are developing a taste for chocolate. China’s chocolate sales are expected to grow 19 percent to $1.2 billion this year (CNNFreedom Project). China isn’t the only Asian country hungry for chocolate. Falling just below China is Indonesia with a 25 percent increase to $1.1 billion and India will most likely see a 7 percent increase as well. If Asian markets keep growing as predicted they could very well have 20 percent of the global market by 2016 (CNN Freedom Project). Changes in export costs also make it more profitable and easier to ship cocoa products to various countries. President Obama’s National Export initiative plans to double U.S. exports within 5 years. To help achieve this goal the negotiation of free trade agreements aid American companies to meet the growing demand for cocoa products. Korea is the third largest exporter for U.S. candies with U.S. brands accounting for 16 percent of the chocolate sector. However American companies are at a disadvantage due to the FTA agreement that was signed to incrementally reduce tariffs and are still paying between 5 to 8 percent tariffs. Some other global competitors seemed to have negotiated better free trade agreements and have seen a decrease on tariffs into Korea. Currently the U.S. companies have paid duties in excess of $18 million since the agreement was signed in 2008 (National Confectioners Association, 2). This will make it difficult for American companies to compete with global competitors because their costs of getting their product to market are greater. However, with the free trade agreements signed with various other countries will enhance exports into Korea to meet the increasing demand of chocolate. In 2011, imports of chocolate and other candies were up 30 percent from 2010 totaling $339 million (Korea Product Brief). The dramatic increase in imports is promising for chocolate manufacturers to try and increase their customer base in a rapidly expanding market. Starting October 31, 2012, Panama is eliminating tariffs on more than 86 percent of U.S. consumer and industrial goods (Poe). This includes chocolates and cocoa inputs which will help American companies continue to hang onto their 42 percent ($27 million) market share for candy, gum and chocolate exports. Panama’s growing economy is expected to keep growing 5 to 8 percent each year through 2017 in conjunction with the implementation of the free trade agreement Panama could become an important importer of cocoa products for American companies. Changes in cocoa production While fair trade and organic cocoa represent a small portion of the cocoa market at 0.5 percent there has been some growth in these sectors. Fair trade cocoa is cocoa from farmers that are compensated a fair amount for their product according to faritadeusa.org they also teach farmers sustainable processes and assist in quality of life improvement. Global sales have seen an uptick in fair trade cocoa from 14,000 tons in 2009 to 35,000 in 2010. This increase is attributed to the growth in the United Kingdom. The United States has also shown an increase of fair trade cocoa imports by 67 percent from 2009 to 2010 (fairtrade cocoa review, 8). With the looming cocoa shortage in the near future, cocoa users are realizing how important it is to be an active partner in sustainable cocoa practices. Manufacturers around the world want to protect their cocoa interests and ensure that there will be enough cocoa to keep up with the rising desire for cocoa products. Various companies have announced their plans and involvement in supporting sustainable cocoa practices as well as providing the farmers the assistance and education needed to ensure a bright cocoa future. According to their company websites the following companies have announced their commitments to provide the cocoa industry a promising future in the years to come. * Mars – 14.6% global market share in 2010 * 2020 – all cocoa will come from certified cocoa * 2011- purchased 10% of cocoa used from certified sources * Nestle – 12.6% global market share in 2010 * Invest 110 million in sustainability, farmer training, social conditions, plant expertise * Commitment to purchase sustainable products * Kraft – 8.3% of global market share in 2010 * 5 year partnership with Bill and Melinda Gates Foundation to improve cocoa production and supply chain efficiency in West Africa * 2011 largest buyer of cocoa beans from certified Fairtrade farms and Rainforest Alliance Certified Farms * Ferrero – 7.3% of global market share in 2010 * In 2011 pledged to use only sustainable cocoa by 2020 * Hershey – 6.7% of global market share in 2010 * Over the next 5 years will invest $10 million in West Africa to improve farming processes and communities * In 2012 U.S. consumers will be able to purchase Bliss products that are produced with 100 percent certified cocoa Implications of shortage Cocoa shortages would have a huge impact globally. It will affect every member in the cocoa supply chain. Farmers will produce less and receive even less money to be able to live off of. The farmers will have even less to invest into their trees continuing to increase the deficit in cocoa production versus demand. The incentive to continue cocoa farming would decrease and may drive farmers to cities to seek other employment or pursue more lucrative farming opportunities. In an effort to combat the drug war in Columbia, farmers were enticed with trading coca (cocaine plant) growing for cocoa partly due to the high prices cocoa was selling for in the late 2000s (cocoa was selling for $3,520/ton in 2010 according to indxmundi.com). It is hard to convert coca farmers to start producing cocoa if the opportunity cost of growing cocoa is less than the opportunity cost of not growing cocaine plants. Not only does a cocoa shortage have a direct impact on the farmer’s lives, but also on their community because the monies from coca plants helps guerilla groups that the government has been fighting for years ( Weissmann). Companies that are dependent on cocoa for their income will face challenges in trying to make quality products that consumers have come to expect at a certain price. Some of the increase in purchasing costs will most likely trickle down to the consumer in order to protect the companies’ profit margin. Also companies may look elsewhere to save money, which can result in less cocoa production jobs. There are close to 50 million people that depend on cocoa for their source of income if nothing is done to help increase cocoa production it will take its toll on many people’s lives and their countries’ financial stability (Fairtrade and cocoa, 2). Supply The world of cocoa beans is centralized in none other than West Africa. In fact the top 5 cocoa bean producing countries are all located in West Africa; countries being The Ivory Coast (Cote d Ivoire), Indonesia, Ghana, Nigeria, and Cameroon in that particular order. The Ivory Coast has been the dominant producer of cocoa beans with production totaling nearly 1,242,300 metric tons of cocoa beans. This equates to about 29.3% of the world’s total cocoa beans. Indonesia is nowhere near the Ivory Coast in production, only totaling about 810,100 metric tons of cocoa beans a year accounting for about 19.1%. Ghana is close behind, producing about 632,037 metric tons of cocoa beans accounting for 14.9% of the world’s total. Nigeria follows with 427,800 metric tons accounting for 10.1%. Cameroon rounds out the top 5 accounting for 6.2% of the world cocoa bean total producing about 264,077 metric tons a year. All these countries producing cocoa beans have experienced increases in production with the exception of Ghana who faced a decline in productivity from the year before. Those countries in West Africa account for nearly two-thirds of the world are the leading producers in terms of metric tons distributed to other companies for processing. With nearly two-thirds of the world’s cocoa producers in West Africa, they are close to monopolizing the cocoa industry. Processors of cocoa beans can find the best producers of cocoa beans in one area and these producers are more than willing to supply at the right price. Over forty percent of the world’s cocoa is consumed in Europe and the remaining percent is distributed across the world globally. Cocoa is the main ingredient in what is universally known as the world’s most popular sweet, chocolate. There are about five-six million cocoa farmers worldwide, many in West Africa. 40-50 million people depend on cocoa for their livelihoods as people especially in West Africa depend on the jobs that cocoa farms provide for the people who live in the area. The economics behind cocoa production is th e livelihood for millions of West Africans. If the cocoa tree is taken away then the locals in West Africa may resort to the coca plant which is a base root for cocaine production. This may also lead into more complications resulting in food riots from people not being able to feed themselves, and drug trafficking which can also have implications for human trafficking as well. There are certain conditions that may hinder or halt cocoa bean production. Like many commodities, cocoa is considered a soft commodity; we can only continue to produce if we are careful with our product. Overharvesting is a major issue in the world of cocoa beans. In the early days of cocoa production, less cocoa beans were used to create milk and white chocolate was highly desired in the less conscientious health world of the mid to late 1900’s. In recent years there has been a major switch in preferences by consumers becoming more health conscientious. Most particularly in the Europe and North American markets has the demand for darker, healthier chocolate become more apparent. Due to these changes there has been an unprecedented cocoa consumption as more cocoa beans are being u sed to create dark chocolate in the last 5 years or so. In a study done by the Scientific American news article, a study revealed that further climate changes can cause West Africa to become too hot to grow cocoa beans. If this were to occur, domestic and international economies would be impacted immensely. The cocoa production farms have attributed to lowering the spikes in poverty, drug trafficking, and food riots by providing many with a legitimate means of making money and providing for themselves and their families. It has been projected that by 2060 over half the cocoa producing countries will become too hot. The cocoa industry is valued around $5.1 billion and with West Africa housing the top 5 producers. This includes the top two producers in the Ivory Coast, and Indonesia which account for more than half of the three million tons sold annually according to the World Cocoa Foundation. In 2020, predictions indicate a 1.5 million ton shortage. Weather predictions believe that El Nino could cause more problems for producers, consumers, and those who rely on the cocoa farms. As cocoa shortages increase, there are bound to be increases in demand for cocoa as more and more markets continue to buy into the commodity. In recent years, Europe and North America have been the largest buyers of cocoa. New countries however, are beginning to see the potential in cocoa and have begun to make their moves and are buying into a commodity that maybe wasn’t as sought after before. China and South Korea are buying into the commodity, which will make it harder for buyers to contract the amount desired if shortages continue and weather proves to be the deciding factor impacting West Africa. The hope now is that scientists can come up with a drought resistant strain of cocoa bean able to withstand the heat; however farmers are taking it upon themselves to develop farming techniques to help the cocoa beans survive harsher conditions. Re-creating optimal conditions is such as temperature is easy, however re-creating the taste is nearly impossible. Change the landscape, or geographical location of where the cocoa beans are harvest, and the taste changes considerably. The need to keep cocoa producers in West Africa has become an important issue for many of West Africa’s population who depend on cocoa production for their livelihoods. West Africa currently holds the best location for cocoa production in terms of elevation, climate, and temperatures that give the cocoa beans its distinct look, taste, and aroma that attracts so many. Moving the production to another country such as Asia or Russia, who generally have cooler temperatures can impact the taste and quality of the overall product. West Africa’s location is great because it is near the equator which keeps the temperatures and weather conditions relatively warm. Conditions like these are difficult to find, if not impossible to find anywhere else. Also child labor has been a constant issue in West Africa. This is especially true in regards to the production of cocoa. This issue has been predominantly an issue in the Ivory Coast, who is the leading supplier of cocoa to many different companies in Europe, and North America. With cocoa prices remaining relatively low, the need to lower labor costs becomes a necessity as production struggles to survive; thus children are employed to work the crops for cheap. According to the International Cocoa Organization, it has been estimated that more than 109,000 children work in the Ivory Coast’s cocoa industry and are working under the worst conditions. Not only are the conditions terrible by traditional standards but many as 10,000 of these kids are victims of human trafficking or enslavement. In 2010, a 10 million dollar program was given to the world’s top cocoa growing region in the Ivory Coast and Ghana who share a common cash crop. This program intended to prevent and stop the use of child labor on cocoa farms but faces many difficulties in its pursuit to end child labor in West Africa. By giving these companies the money to boost their revenue they can afford to not have child labor as a way to mitigate costs. Children are put to work carrying heavy loads, spraying toxic chemicals, and in danger of severely hurting themselves in the process of producing and harvesting crops. In a recent report in 2011 by BBC News, there was little change to the situation with child labor on the Ivory Coast. Companies who buy from the Ivory Coast and any production plant in West Africa are being asked to take more responsibility and getting more involved with the production from which they are buying from. Simply paying for cocoa beans is not enough. The emphasis here is corporate social responsibility. West Africa is undoubtedly in need of development and European and North America companies are the best possible source for development in West Africa. Roads, schools, hospitals, and social areas for the youth to gather would significantly help the people of West Africa. Companies such as Kraft foods, Mars Inc., Nestle, Ferrero Group, and Hershey Foods Corp are all major players in the cocoa industry who buy and process the cocoa beans into chocolate. The main distribution channel for the cocoa industry is the retail channel. Cocoa beans are harvested and sold by the metric tons to companies such as Kraft, Nestle, Ferrero, and Hershey’s. These companies then process the beans and manufacture the final chocolate product in their factories which are then distributed to retail stores across the country. A primary value driver for chocolates and other confectionary sweets is taste. Despite the recent recession, the cocoa and chocolate industry continued to grow and expand. People love chocolate and demand for chocolate has continued to grow. This demand and love for chocolate is beginning to make its way into highly populated areas such as China and India where the middle class is large, strong, and growing. Chocolate has been considered an affordable luxury. Despite rising health concerns chocolate is still in high demand, more specifically dark chocolate. The producers of cocoa beans like the Ivory Coast produce a commodity that is in high demand due to its versatility. Chocolate has many uses including, foods like desserts, sweets, and candy, medicine, and cosmetics. Dark chocolate has been proved to be part of a healthy diet. It is known to lower blood pressure and cholesterol, and has eight times the antioxidants of strawberries. In the chocolate and confectionary sweets industry, there are many long standing traditions that make chocolate such a strong industry. For decades, chocolates have been a staple of gift giving, like flower shops who focus on the sale of flowers, themed chocolates and delivery. Companies such as Costco, who sell in bulk, sell assortments of chocolate and charge by the pound. Premium or high end chocolate has been increasing in sales since the economy has been making strikes in recovery from the recession. On site baking has become more popular now as the smell of chocolate acts as free advertising. The chocolate and cocoa industry has remained strong and resilient from effects of the economy and the recent recession. Cur rently West Africa is producing cocoa under unstable political conditions. The turmoil and civil war on the Ivory Coast has left the country divided and suffering. Despite accusations that the Ivory Coast production of cocoa beans has been providing weapons and funding for both sides of the civil war, the production has been a ray of hope for the country. Due to the jobs provided for the people living in West Africa, crime rates and drug trafficking has declined, allowing people to work for a living that provides them the opportunity to live a life free of drugs and violence that has torn the land apart. The turmoil from the civil war on the Ivory Coast has caused prices to rise. Despite the rise in prices, companies continue to buy but at some point in the rise in prices, companies will pass. In January the price for a ton of cocoa was a little over $2,300. In September prices peaked at the highest it has ever been this year at just over $2,600. The price fell just slight at $2,463.54 a ton in October. With the turmoil in West Africa causing unstable political governments and civil war tearing the country apart, prices are expected to rise. This data was courtesy from the international cocoa organization. Strategy to reduce cost and/or assure supply With any commodity in the 21st century, constant usage and harvesting are issues that if not monitored can lead to shortages in supply, or possibly depletion of the commodity. There are bound to be problems somewhere along the timeline that can affect the condition of the commodity. Cocoa is no different in that there is constant threat of the commodity becoming scarce globally. Regardless of the recent recession and the recovering economy, cocoa is one of the few commodities around that wasn’t affected to a great extent as other commodities. To begin the 2012 year cocoa per ton cost buyers a little over $2,300. From January through August, the price of cocoa faced many ups and down but never going any lower than the price point in January. In September the price peaked at its highest price point for U.S. companies’ purchasing cocoa beans per ton at over $2,600. Since then it has dropped slightly but is expected to rise according to the International Cocoa Organization (ICCO). Here is a graph illustrating the price changes for the year (Data courtesy of International Cocoa Organization). According to the scientific American news, the cocoa industry is already reporting a 1.5 million ton shortage within the next 10 years or so. What could this potentially do to the price of cocoa in the coming months? Years? If shortages continue to increase than prices can only go up with each coming month. Now while the supply of cocoa decreases, global demand has been projected to rise for a commodity that is becoming more valuable and scarce by the order. The cocoa industry has a strong position in the market as a commodity that is versatile in its uses. The cocoa industry deals with futures contracts which basically means that the buyer agrees to pay for the shipment based on the price of the product the day the contract was made official. Commodity pricing constantly fluxuates monthly, therefore a futures contract protects both parties from any undue damage from prices increasing or decreasing. Reports from several sources including the Huffington Post, and commodity help HQ, have high hopes for the future of cocoa in terms of it being able to sustain itself. Numbers at this time last year are up and there isn’t a reason to really worry about the state of the cocoa industry. Placing an order for cocoa is very similar to writing a math equation. A simple cocoa contract consists of many key specifications. Each contract must state the ticker symbol, contract size or how much cocoa is being ordered; usually in metric tons, deliverable grades which depends on the growth of the country or climate and is divided into three grades. Countries such as the ones in West Africa; Ghana, Nigeria, Ivory Coast, and Sierra Leone are the main crops and receive a grade A classification. Classifications of B or C are smaller and cheaper, such as Venezuela, Malaysia and Haiti. Next the trader or buyer must specific contract months, which are specified by letter coding for each month; for example May is coded K. Next the trading hours must be specified, last trading day, last delivery day, price quotes, tick size which indicates what the size of the order is, and daily price limits. An example formula can read â€Å"CC8K @ 1363†. The CC is the ticker symbol, the 8 indicates the year (2008), K tells us the month which is May, and the numbe r indicates the dollar amount per metric ton. Say the order size was 10 metric tons, the size would be multiplied by the dollar amount per ton. When it comes to possibilities of making cocoa in house, for many companies it becomes a daunting task and nearly impossible to simulate the conditions that allow cocoa trees to grow optimally. It is nearly impossible to produce the same cocoa beans as the beans grown in West Africa. Near the equator where it’s optimally warm, the conditions are right, the soil is ripe to grow cocoa beans in which give the bean a distinct taste. Moving production anywhere else may change the taste and alter the quality. Temperatures for healthy growth range from 69-90 degrees Fahrenheit. Temperatures lower than 59 can become fatal for the plant. Also adding to the tough conditions is that cocoa trees need no more than 2000 millimeters of annual rainfall. These conditions can leave the tree vulnerable to climate changes. In a study done by the Scientific American news site, scientists are predicting that by 2060 half of the cocoa producing countries may become too hot. The heat is not the only problem in this situation; it’s the pollinators of the trees that become affected as well. Bees and butterflies are common pollinators and cocoa flowers can be pollinated by midges, small flies or by hand. However these climate shifts in temperature could leave the country without bee colonies. In 1983-1984, cocoa production had reached a respectable level of 1.5 million tons. In twenty years this number doubled. The troubling fact to be considered here was that the number hadn’t doubled because of any technological advancement but because more land was acquired. The Ivory Coast is one of the most unstable countries in the world not just politically but economically. Civil war has divided the landscape and because of the lack of growth the country has remained third world. Lack of education, jobs, and healthy outlets have left many West Africans to turn to drug dealing and human trafficking. With the extra land acquired for the cocoa trees, labor was short and there were plenty of children to put to work. The world is looking to put an end to child labor in cocoa producing countries. The cocoa industry has quite the road ahead of them towards recovery as an industry and as a nation for which they work in. Realistically there is no suitable substitute for this commodity. With nearly 70% of the world’s cocoa produced in West Africa, which includes the Ivory Coast, Indonesia, Ghana, Nigeria, and Cameroon. With climate changes making weather conditions too hot, which will indefinitely affect the top three producers of cocoa beans in the Ivory Coast and Indonesia, and Ghana, it will become difficult for countries to get their cocoa. Before when it was just Europe and North America, supplies could take such a hit; but with developing middle class countries like China, and South Korea coming into the mix it will be tougher to acquire what is needed. Shortages lead to price increases, and at some point companies will simply pass on the commodity and move onto other things until prices fall. There are several solutions to the problems environmentally, politically, and agriculturally in West Africa. Corporations who buy cocoa from these countries may need to step in to help the growth of the country by providing access to education, hospitals, all the essentials that help societies grow. Corporations may give money to these countries to help production and attempt to prevent child labor practices but it will never be enough. Political instability , civil war, and child labor are all issues connected to the well being of communities tied to West Africa. Another solution is possibly a pipe dream but a realistic attempt at countering climate changes that could affect the cocoa trees. Scientists are working on creating heat resistant beans to counter the rise in temperatures so that crops can be more resilient and yield more. Moving crops to cooler climates in Russia and Asia have also been considered to balance the additional heat. One other solution is to help the farmers directly. Teach the farmers techniques; show them methods that they can use on their farms. Help provide proper and modern tools and technology to make the entire farming process easier for everyone. It is difficult to say what is right and what is wrong in this instance but something needs to be done if European and American companies wish to satisfy a rising demand with such a versatile commodity. Commodity HQ, a trading a commodity research site predicts that the futures for cocoa is strong and has been soaring compared to last year’s performance. Cocoa is one of the most popular soft commodities in the market. Regardless of the drop in futures and the effects of the most recent recession, cocoa has remained strong and resilient to any effects. By the end of 2011, cocoa futures have experienced a 41% drop. Comparing this year’s numbers to last year there is already a 7.6% increase and this number for this year has continued to soar. When looking at the production of cocoa, the Ivory Coast is the leader as they double the production of their next best competitor in Indonesia. The clientele who buy cocoa from West African countries like the Ivory Coast and Indonesia are modern, well developed countries like the U.S. whereas West Africa is still very much third world. As demand continues to grow as demonstrated with China and South Korea entering the cocoa market along with the U.S. and Europe, this list is only going to grow as the commodity becomes more popular. As weather conditions affect the production of cocoa, civil war on the Ivory Coast, child labor, and over harvesting effect the commodity, shortages will occur. When shortages occur, prices rise exponentially, which leaves one to wonder how far can the price increase before companies around the world decide to call it quits and pull out of the cocoa industry? People love chocolate, and that is not an understatement. Cocoa, cocoa powder, chocolate, and cocoa butter are all variations of the original plant. The future of cocoa looks very bright. The only external factors that may affect the commodity are the political strife’s, climate changes, and practices in production. Works Cited Cadbury. Cocoa and Chocolate. 2012. 26 October 2012 http://www.worldagroforestry.org/treesandmarkets/inaforesta/documents/cocoa%20and%20chocolate/cocoa%20and%20chocolate.pdf. Canizaro, Mark. All About Chocolate. 2002. 26 October 2012 http://www.xocoatl.org/variety.htm. Service, Transport Information. Cocoa Beans. 2012. 26 10 2012 http://www.tis-gdv.de/tis_e/ware/genuss/kakao/kakao.htm.

Why Dont Girls Choose Science :: essays papers

Why Dont Girls Choose Science Issues Essay: Why Don’t Girls Choose Science? In South Australia in 1983 less than one-third of students studying physics at matriculation level were girls (Robottom, 1986). Sixteen years later, in 1999, girls still only made up 35% of students studying physics at the matriculation level (SSABSA, 1999). Despite all the advances for women in modern society it seems that there is still an issue of concern in that of girls participation and achievement in science. Adamson, Foster, Roark & Reed (1998) suggests that the gender gap in science appears to widen with development so much so that there is concern that women are being underrepresented in some science fields. It is suggested that due to the role science and technology plays in all of our lives today it is not only a concern that women are limiting their career options, but also that they are not getting the opportunity to take part in the planning and decision-making processes that occur in areas which affect all citizens (Johnston, 1984). Indeed, Andre, Whigham, Hen drickson & Chambers (1999), have found that secondary school girls have lower persistence and enrolment in the physical science pipeline, which of course leads to women having lower participation in physical science careers. Recently O’Brien, Martinez-Pons & Kopala (1999) reported that gender could directly predict students’ career interests in the science and engineering fields, leaving no question as to whether gender was an issue when choosing science subject. It is thought that the critical moment for girls arises when they have a choice as to whether to do science or not (Robottom, 1986) and it is at this point the gender differences really become noticeable. Studies have revealed that girls were choosing to do language, arts or biology, whereas boys were choosing to do physical science courses (Farenga & Joyce, 1999) and it seems that there is no biological basis that can account for this low achievement and representation of girls in physical science (Johnston, 1984). This viewed in the light of the fact that it has been shown that the school plays a major role in the performance and attitudes of girls to science (Johnston, 1984) must prompt all teachers to examine what they may be doing to contribute to this problem and what they may be able to do to encourage girls to become involved in science, particularly the physical sciences.

Poe :: essays research papers

What is the total effect of a story? The total effect of a story is the specific response an author expects to get from his/her readers. In "The Tell-Tale Heart," by Edgar Allen Poe, is complete and total horror. The setting, plot, character and even point of view contribute to this total effect of horror. The setting contributes to this total effect in several different ways. All of the shudders in the house were closed, so no one could see anything from the outside in or the inside out. This was scary because no one ever knew what went on in that house except the old man with the googily eye and the murderer. The house was old and creaky, and, during the midnight hours, was pitch black. This creaky old house is a classic for horror stories and films, so it definitely adds to the total effect. The plot also gives that same feeling of horror. The way the murderer watched the old man night after night, for hours at a time. You got the total effect of horror when he flipped the bed onto the old man, and then chopped him into little tiny pieces and hid him the floorboards. Then the police came to see about a scream that was reported earlier. The man led them through the house, claiming that the old man was out of town for a while. He finally sat down in the exact spot where the old man had been buried under the floorboards. What eventually made the man confess to what he had done when he imagined that he heard the old man's heart beating from under the floorboards. It got louder and louder until finally he thought they(the officers)were just driving him insane and they heard the heart to and they must have heard it until he just jumped up, ripped off the floorboards and said "I did it, I killed him," pointing at the pieces of the man. Characterization is the biggest part of the total effect of horror. The man seemed normal enough, except for the fact that the old man's "vulture eye" made a little crazy. He was very normal, until the "eye" drove him to stalking the man while he was asleep, and then finally killed him. At the beginning of the story, or the end, whichever you would like to call it, it was the beginning, and the end, he kept saying "I'M NOT MAD," it was sort of, well, a psycho thing to say after chopping someone into little pieces and hiding them in the floorboards, that kind of told

Use of Games in Teaching Grammar

Basically, female students are more polite and usually follow the teachers' instruction. They prefer to listen and learn. While the male students tend to ignore and do what they want to do, actually it challenged the teachers' patience. The male students tend to get bored easily, since learning English is more to theories learning. Moreover, a study has shown an important perspective under second language learning investigations; highlighting females to execute more interests, positive behaviors and performances, in comparison to the males (Keller, 1983; Awaken, 1999; Doormen&Shoaib, 2005).These re due to students' unlike levels of motivation, attitudes and anxiety towards language learning, further Influenced by their learning characteristics and styles, lesson content and teaching strategies, social environment and supportive mechanisms, family Influences and peer pressures, cognation levels, and so forth (Williams, Burden , 2002). It is important to note that the challenges facing school systems confronted with the same challenges. Sadomasochistic are not simply an artifact of urban education; rather, they have a significant impact on how urban schools are structured.The concentration of poverty and racial isolation matters in that it is directly related to school processes that significantly influence student achievement trends (Reemerged, 2005). 3. Objective This study aims at identifying reasons why female students have higher interest towards learning the English language. The objectives are as follows: a. To analyses the problems faced by the male students who have lower interest in language learning. B. To find out the whether the teacher is being biased c. To identify the best strategies to attract male students attention in learning language. Problem statement Why do female students have higher interest in learning English language in urban school? This paper addresses the problem that female students have higher interest in learning English language in urban school. Girls were found to be more inclined to study foreign and second languages and outperform boys (Cumberland, 2000). Males are claimed to have a more negative view and a less aptitude towards foreign language than females (Week, 2011). It shows that male students have lower interest and effort to learn English language.The main reason I want to conduct this research s because I am eager to know what makes this big gap in interest of learning English language between female and male students. Why female students interest is higher in learning English language. All these crucial points must be clarified. Only then, we can overcome this matter. Assumption -Male students have lower interest in learning English language. Research Question a. Is it because female students are not interested in practical learning? B. Are the teachers who teach English language come across being biased and not effective? C.What are the strategies can be used by the teachers to grab male stud ents and other students' attention? . Literature Review Several recent studies indicate that many young women around the world consider English to be intrinsically linked to feminism and are motivated to learn it as a language of empowerment. This trend is apparent in Japan, the FL context highlighted in this volume. At present many more young Japanese women than men appear to be interested in learning English, training for English language-related professions, and traveling to English-speaking countries (Sickbay's, 2002).For these women, English offers an entry into the Job market as well as a possible way of liberating themselves from the confines of gender patriarchy. Therefore, we can say that women have awareness of how important English language is. They know their a) Lack of motivation. Moreover, gender has been an important perspective under second language learning investigations; highlighting females to execute more interests, positive behaviors and performances, in compar ison to the males (Keller, 1983; Awaken, 1999; Doormen, 2005).Either because of their uninterested factors or because of feelings of hopelessness, students feared to lose face. Under such conditions, if the teacher were too strict and serious, they would lose their confidence, and not participate voluntarily. They do not have guard to talk in front of others. Some teachers tend to correct the students answers or words directly, it really denominated the students especially the boys. Teacher should be more gentle and smart in correcting the students so that they would not feel embarrass.Teachers' Judgment and treatment of students has tremendous influence on their educational and emotional development, and also impacts how students are labeled, and thus able to access educational resources (Cochran-Smith, 1997; Sakes & Lipton, 1999). Teacher's words and actions influence students very much, because students see teachers as heir role model. B) Teachers are being Judgmental and biased. Social Justice educators, instead, recognize that society is inequitable.Hence, they expect students of color, along with those who are poor, disabled, female, or have limited English skills, to encounter racism, classicism, and other forms of discrimination as part of their efforts to become productive and prosperous citizens (Bartholomew, 1994; Deader, 1991; Sakes , 1999). Teachers' perceptions of male- and (femaleness are crucial for their relations with pupils and can be an important factor in generating gender equity in schools. Gender stereotypes are also likely to be reinforced or weakened by text books and reading material provided in schools.When teachers become so Judgmental, it will affect his or her teaching and learning process and cause other problem, which can make some students feel left aside. Some teachers tend to focus more on female students because normally male students are playful and tend to make fun of the learning itself. However, there must be some male s tudents who really want to learn the language seriously. A study published in the Journal of Human Resources, revealed that boys gained a grade onus on assessment scores when they behaved as well as girls. ) c) Participation in classroom lessons.Participation usually means students speaking in class which are answer and ask questions, make comments, and Join in discussions. Like those in Cortical and Jinn's (1996) study, the students in the present study also worried about losing face in oral English language classrooms. Thus, they kept quiet and waited until they were required to speak English. As we can see a male student's responses, â€Å"l am not so active because I don't want to â€Å"lose face† when I make mistakes† (L', male). â€Å"L have elf-respect and don't want to lose face before others. Female students tend to be learning seriously.Most of the male students do not like to be control within any situation, they like to be free and do as they like. Even th ough, they Join the learning process, they will usually be Joking around rather than learning seriously. Teacher should come up with practical activities such as role play, debate, choir and others to attract student's attention especially male students. This is because males tend to engage eagerly in practical learning style. D) Students different learning strategies Learning strategies are defined in general as behaviors that are intended to influence the individual processes information.Chamois (1987) regards learning strategies as techniques, approaches or deliberate actions that students take in order to facilitate the learning, and recall of both linguist ICC and content area information† (Chamois, 1987, p. 71). Similarly, according to Oxford (1990), language learning strategies are specific operations used by the learner at various levels to ease the acquisition, storage, retrieval and use of information. Individuals' learning Tyler differ based on their high versus low academic achievement. Gifted and underachieving students have significantly different learning styles and do not perform well with the same methods.Conversely, gifted students in nine diverse cultures with talents in either athletics, art, dance, leadership, literature, languages, or music evidenced essentially similar learning style characteristics to other students with the same talent (Amalgam & Price, 1993: 7) and much defiance, meanwhile, the girls produced big blocks of talk and were obedient, and there was much attentive listening and sympathizing. Females were more successful than males in eight countries among 9-year-olds. ((landfills differ by gender (Grebe, 1999; Pizza, 1990). Males and females learn differently from each other.Males tend to be more kinesthesia, tactual, and visual, and need more mobility in a more informal environment than females. Males also are more nonconforming and peer motivated than their female classmates. In group, males tend to learn less by li stening. Females, more than males, tend to be auditory, authority-oriented, and better able to sit passively at conventional classroom desks and chairs than males. Females also tend o need significantly more quiet while learning (Pizza, 1990: 1 1); be more self- and adult -motivated, and conforming than males (Marcus, 1977: 9). ) Teaching strategies Cave (2001) suggested, studying such questions is important because if gender disparities are found, they may lead teachers and researchers to seek ways to minimize them, thus affording both genders maximum opportunities to achieve high levels of LA literacy. In terms of general language learning strategies, some studies show minimal differences between males and females (Smash, 2003; Shook&Sheorey, 2002) or even higher strategy use for males (Bally, 1996). Most current literature in this area, however, shows that females tend to be more active strategy users than their male counterparts (Oxford, 1993).Teacher should put herself into her students' place, thinking about their difficulties in learning English. Teacher should to be more active, thoughtful, and humorous while giving a class, not stern like certain teacher's role to change the student's perspective of learning English language. Teacher must be creative and create fun learning. Sometimes students don't like to read because they find it difficult. It is the teacher's Job to find the ability level of each detent and gear lessons to meet their needs. Students will feel successful and connect to lessons when they are taught at their level.Those students who seem bored probably lack of the ability to keep up with other students in the regular classroom. Mix up the male students with female students whenever there is activity in classroom. Therefore, the boys would not left behind. We know the girls will do their tasks properly. Their cooperation in completing the task will produce fantastic outcomes. Female students will be more silent and generate ideas whil e the boys will help and boost up their plan. 6. Research Methodology I will be using quantitative method for my research later. I will prepare questionnaire.In which I will use liker scale in my questionnaire. This is because I think, this is easier for them to understand and easier for them to provide their feedback. 7. The expected Work Schedule/Timeline My research will be done during 14 weeks of practical at school. For the first 1 week, I will be observing the students attitudes and responses towards my teaching. The next three weeks, I will give them few activities, exercises and see the feedback. Based on the activities and exercises given, I will identify their strengths and nakedness. I will prepare the questionnaire based on that.

Constructing a Revolution essays

Constructing a Revolution essays A BRIEF EXAMINATION OF THE RELATIONSHIP BETWEEN THE RUSSIAN AVANT-GARDE AND THE OCTOBER REVOLUTION The Russian Avant Garde began in Russia in about 1915 It was the year that Malevich revealed his Suprematist compositions that reduced painting to total abstraction. and rid the pictures of any reference whatsoever to the visual world. He is credited with being the first artist to do this; that is, forsake the visual world for a world of pure feeling and sensation. This was the first movement originated by Russians and the birth of several other Avant Garde movements. Probably the most popular piece at his 1915 exhibition was BLACK SQUARE (real name suprematist composition. Its basically a black square on a slightly larger white square that forms a border around it. It was hung in the exhibition in the way an icon would be hung in a peasants home; ie top corner of the room. Malevich saw Suprematism as representing a yearning for space, an impulse to break free from the globe of the earth. It a spirit, a spirituality that went beyond anything before it. Among Malevichs students and contemporaries were such names as El Lissitzsky, Alexsandr Rodchenko and Vladimir Tatlin who were, of course, to lead the Constructivist movement which started in the same year as Malevichs exhibition. Tatlin had returned from studying art in Paris in 1913 where he had seen a series of relief constructions by Picasso. Tatlin became very interested in form and message rather than representation and so he himself made a series of constructions. They were in the same vein as Picasso, but they were framed within a space and jutted out of the picture plane into the space of the observer. They created a lot of interest and he coined the term Constructivism. Tatlin and Malevich, who had been friends up until this point started to be competitors over art ideology and this continued for a long time after the Bolsh...

Response to Panther Film

Response to Panther Film Panther is a movie based on a true story accounting on activities of the Black Panther Party for Self-Defense, the organization acting from 1966 to 1982 to struggle for freedom and equality of the African Americans by using armed forces. The film starts with the description of organization’s leaders Bobby Seale and Huey Newton, two representatives of Oakland black community who grew up in poverty, racial discrimination, and government’s negligence that all black people experienced during this period (Panther).Advertising We will write a custom essay sample on Response to Panther Film specifically for you for only $16.05 $11/page Learn More Nowadays, the U.S. government is more concerned with the issues of racial discrimination that sometimes takes place, as well as the problems experienced by the ghetto regions. However, the renewal of the Black Party Community should not be premised on military actions, but on the development of strong idealis tic principles and rules supporting the culture, traditions, and social life. By founding the organization called Black Panther Party for Self-Defense, the members were strongly convinced that using armed struggle was the only way to prove the power and dominance of the black community over the white population in the United States. In fact, the movie focuses on the increasing popularity of the Black Panthers among African-American youth across the country and brings attention to other military forces in America fighting against discrimination. In fact, the violence of the organization would meet rigid opposition of the 2012 government because of significant discrepancies between socio-political situations of the two historically different periods. In particular, the current situation in the United States has changed in terms of the new military programs aimed at enhancing security of the population. Second, the racial issues have been suppressed and the President Barack Obama has e stablished a new order in which freedom, equality, and human rights are highly honored and respected regardless of nationality and race. Therefore, the armed confrontation would not be effective at the threshold of the twenty-first century. Additionally, due to the fact that the black population constitutes minority in the United States, the Panther Party was also a minority acting within minority groups. Therefore, their revolutionary struggle contradicted the social and economic realities of 60s and 70s of the past century. In order to change the political and ideological frame of the community, as well as confront the modern political realities, the Black Panther Community could suggest ten new rules and tenets for establishing a revolutionary Nationalist party and rethinking over new doctrines of non-violence:Advertising Looking for essay on african american? Let's see if we can help you! Get your first paper with 15% OFF Learn More The party should figh t for equal access of African-American to education and job employment. The party should work on diminishing the crime levels in ghetto regions and creating new funds for low-income people. Each member of the party should adhere to the Constitutional rights and pledge for the shifts in the right that could support ethnic minorities. Weapon should not be used as the methods for struggling against racial discrimination. Using internet for mass mailing and information flow could be the leading source for supporting the position. The party should focus on such issues as collective action, black integrity, and cooperative economics. These rules should differ from Maoism and Marxism ideology. Acknowledging spirituality and culture is also among the priorities of the Black Panther community that should support any display of African culture. Each member of the part should protect the rights of African-Americans to self-determination. Departure from rigid confrontation against non-black pop ulation and focus on human liberation should be the new stance for action. Greater cooperation and humanism are the main principle of the Panthers. With regard to the above-presented tenets, the Black Panther party should not premise their actions on armed struggle because of the emphasis placed on humanism and liberation regardless of race, nationality, and ethnicity. Currently, African-American community gains recognition of its rights that are similar to those established previously for the rest of the U.S. citizens. Therefore, former methods used by the community would not be self-sufficient because of the rapid shifts in the governmental principles. In particular, the government recognizes that there is an institutional racism, but it should not introduce extra emphasis on minorities groups in achieving liberation and equality. Instead, the newly organized movement should strive to establish a new framework in which all nationalities will work on developing a new community fre e from biases, stereotypes, and discrimination. In conclusion, the film Panther focuses on the cruel confrontation between the members of the Black Panther community and the FBI, but the leading provisions and methods used by the Panthers should be revisited to establish new doctrines free from aggression and military intervention. The new tenets of the Black Panther community should premise on human liberation, equality, freedom, and stronger emphasis on education. The poorest district should be supported with newly organized funds for national minorities. Additionally, the employment perspectives should also be introduced to allow the low-income families improve their welfare. Finally, the 9/11 events should also impose a sort of responsibility for the entire population in terms of security and protect and redirect all the power to struggle against terrorism. Panther. Ex. Prod. Melvin Van Peebles. USA: Working Title Films, 1995. DVD.

Free Essays on Forrest Gump

â€Å"Life is like a box of chocolates†¦you never know what you’re gonna get.† This quote was frequently heard during the summer of 1994 when Robert Zemeckis directed Forrest Gump. A film of two hours and twelve minutes, one would think the movie would lose interest, but it’s the complete opposite. Forrest Gump, a low-intelligent man, tells his life story to people waiting at a small town bus stop. The film allows the audience to see the world through his misunderstanding of many things, demonstrating his low IQ. The movie starts out with a young Forrest Gump, played by Michael Humphreys. Forrest meets the love of his life, Jenny, played by Hanna Hall. They met the first day of school on the bus; Jenny was the only person that was nice to him, besides his mother. When the two grow up Tom Hanks plays Forrest Gump and Robin Wright plays Jenny. Because of Forrest’s below average IQ, Mrs. Gump, played by Sally Field, slept with his principal for admission of him into the school. Forrest later on received his high school diploma and because of his blazing speed, was offered a scholarship to play football at the University of Alabama, not far from his hometown of Greenbow. Jenny would come and go from Forrest’s life throughout the movie, usually leaving with another guy. After high school, Gump enlisted in the U.S. Army where he met Bubba Blue, played my Mykelti Williamson, the only other person to treat Forrest with respect. Bubba was an African American and had a background with fishing for shrimp. The two decided that once the war was over they were going to go back home and work on the same boat fishing for shrimp. During the war Forrest’s army was attacked, Forrest kept going into the site to look for Bubba instead of saving some of his other friends, including Lieutenant Dan Taylor, played by Gary Sinise. Forest finally found Bubba, but Bubba later died in his arms that afternoon. Forrest knew that someday he would... Free Essays on Forrest Gump Free Essays on Forrest Gump â€Å"Life is like a box of chocolates†¦you never know what you’re gonna get.† This quote was frequently heard during the summer of 1994 when Robert Zemeckis directed Forrest Gump. A film of two hours and twelve minutes, one would think the movie would lose interest, but it’s the complete opposite. Forrest Gump, a low-intelligent man, tells his life story to people waiting at a small town bus stop. The film allows the audience to see the world through his misunderstanding of many things, demonstrating his low IQ. The movie starts out with a young Forrest Gump, played by Michael Humphreys. Forrest meets the love of his life, Jenny, played by Hanna Hall. They met the first day of school on the bus; Jenny was the only person that was nice to him, besides his mother. When the two grow up Tom Hanks plays Forrest Gump and Robin Wright plays Jenny. Because of Forrest’s below average IQ, Mrs. Gump, played by Sally Field, slept with his principal for admission of him into the school. Forrest later on received his high school diploma and because of his blazing speed, was offered a scholarship to play football at the University of Alabama, not far from his hometown of Greenbow. Jenny would come and go from Forrest’s life throughout the movie, usually leaving with another guy. After high school, Gump enlisted in the U.S. Army where he met Bubba Blue, played my Mykelti Williamson, the only other person to treat Forrest with respect. Bubba was an African American and had a background with fishing for shrimp. The two decided that once the war was over they were going to go back home and work on the same boat fishing for shrimp. During the war Forrest’s army was attacked, Forrest kept going into the site to look for Bubba instead of saving some of his other friends, including Lieutenant Dan Taylor, played by Gary Sinise. Forest finally found Bubba, but Bubba later died in his arms that afternoon. Forrest knew that someday he would...

Impact of Industrial Revolution Essay Example | Topics and Well Written Essays - 750 words

Impact of Industrial Revolution - Essay Example However, despite the great attention that I have accorded to the subject, I feel a bit discouraged by the score attained in the assignment previously. My understanding of assessment evaluation as such a paper is that the most important factors that are considered are together with the language competence, proper understanding of the question, the quality of the materials used as well as the ability for a student to express ideas fluently and cohesively. In my personal evaluation of the previous paper written (on impact of industrial revolution), I would reason that my command for English as the formal language of communication is unquestionable. I have a proven command in communication in language as would be justified through the excellent sentence structure, excellent spellings as well as the ability to interlink the points in a logical manner. Besides the ability to write and communicate in English, I have proven capacity to extract information from other written materials and com prehensively relate it to produce such a good flowing and informative paper as that previous paper. Among other strengths that I would be certain of are the capacity to effectively understand an examiners intentions through understanding the question. In this regard, I therefore feel that the assignment was handled effectively and perfectly to warrant a better grade than accorded. However, as it is famously said, man is to error, this position does not refute the possibility of having great weaknesses, which would explain my poor performance. Having studied in detail the question and the skills to tackle such an assignment from my teacher, I stand to be corrected on the weaknesses that I have shown in the assignment. In particular, I highly appreciated the comments from my teacher concerning my assignment. He justifies my poor performance through pointing out certain weaknesses that are portrayed in the paper in general. The comments points out to the first issue that would have led to my poor performance would have been the low quality picture used in the analysis. The picture was not clear and thus presented a problem to any person analyzing it. Besides the weakness of the picture, it was also farfetched from the core idea behind the essay. This would point out to the possibility of poor understanding of the question or task. This points to a possible weakness in my comprehension of that particular task and hence the adoption of a rather wrong approach while addressing the question posed. The comments from the teacher show that my tackling of the industrial revolution was very broad and never warranted the use of the picture as used. The referencing also fell short of expectation in that few sources are sited compared to the breadth of the topic, which would imply the application of other materials, which are not captured. This is a weakness concerning professional academic practices. It is also poor to cited the source of the picture and have the source not referenced again. These weaknesses among others led to the poor performance in the paper as shown by the lecturers comments and would therefore be attributed to personal weakness. Nevertheless, according to my opinion, my weakness is not wholly on poor understanding of the question posed but on the centrally the weakness is in having much of the information I want to write but fail to appropriately present it.

Animated Sitcom Essay Example | Topics and Well Written Essays - 1000 words

Animated Sitcom - Essay Example projected by the animated characters, because it gets neutralized in the audience perception, as being resorted to more out of an intention to create fun, rather than being something serious and somber. It goes without saying that many a times, hiding behind the perceived intentions of creating fun, the animated sitcoms do comment on the politically sensitive issues like race, gender and age in a very thought provoking and unsettling manner. The animated sitcoms do mostly afford to challenge or disturb the social status quos, because the society mostly perceives them as being something created to be inherently funny and ridiculous. No wonder, if something is being perceived as being quintessentially funny and ridiculous, the nonconventional social comments and observations made by such a genre are more than often forgiven, because of being taken as something light and imaginary. It goes without saying that the animated sitcoms realized the complete extent of poetic license they carry over a period of time, through much trial and experimentation. If one analyzes the animated sitcoms in a historical context, one simply cannot fail observing the fact that the families found in the animated sitcoms have gradually graduated from being normal, to funny, to being outright subversive. The animation aspect of these sitcoms allows the artists to portray even the most socially horrifying and sensitive aspects of life in a way that appears and sounds less offensive to the viewers. Certainly, the controversy that the animated sitcoms are able to dilute and mitigate in their peculiar format is something that perhaps even the most popular of live action shows cannot get away with. However, the more serious connoisseurs of animated sitcoms do know that the comedy inherent in the animated sitcoms is definitely not mindless and flimsy. Actually it is in a way the projection of a visual social commentary which does have the capacity to give way to meaningful discussions and

Critical Appraisal 1 Research Paper Example | Topics and Well Written Essays - 1500 words

Critical Appraisal 1 - Research Paper Example The major study concepts include: sleep loss (deprivation or disruption) and cognitive-behavioral outcomes such as decreased sleep duration, increased daytime sleepiness, decreased alertness/drowsiness (vigilance) and increased accidents/errors (nurse & patients). Variable Identification and Definitions Independent Variable: Fatigue Countermeasures Program for Nurses (FCMPN) Conceptual Definition: â€Å"The 60-minute education component of the FCMPN included information about fatigue, sleep, and circadian rhythms: neurobehavioral and health effects associated with sleep loss or deprivation; and misconceptions about sleepiness. Strategies for managing alertness, minimizing fatigue, and maximizing sleep duration and quality were highlighted †¦Ã¢â‚¬  The program is discussed in detail in Scott et al. (2010, p. 252) article. Operational Definition: â€Å"The underlying concept of most fatigue countermeasures programs is that fatigue management is a joint responsibility of the emp loying institution and each employee. Comprehensive programs to manage fatigue in work setting usually include the following six elements: (a) education and training, (b) compliance with hours of service regulation, (c) appropriate scheduling practices, (d) countermeasures that can be instituted in the work setting, (e) design (ergonometric) and technology (fail-safe designs), and (f) research† (Scott et al., 2010, p. 252). ... 254). Sleep Quality Conceptual Definition: Not conceptually defined but a likely definition is the weariness on waking and all through the day. Operational Definition: â€Å"Subjective quality of sleep was measured using the PSQI† (Scott et al., 2010, p. 253). Daytime Sleepiness Conceptual Definition: Not conceptually defined but indicates the tiredness in individuals due to lack of or disruptive sleep. Operational Definition: â€Å"The ESS (Johns, 1991) was used to evaluate the severity of daytime sleepiness† (Scott et al., 2010, p. 253). Vigilance Conceptual Definition: â€Å"It is the inability to remain alert during and after work† (Scott et al., 2010, p. 253). Operational Definition: â€Å"Measured by drowsiness and unplanned sleep episodes at work and while driving† (Scott et al., 2010, p. 253). Risk for Accidents and Errors Conceptual Definition: â€Å"Number of incidents of motor vehicle crashes (MVC)† (Scott et al., 2010, p. 255) and  "mistakes involving medication administration, patient care procedures, and transcript issues† (Scott et al., 2010, p. 256). Operational Definition: â€Å"Accident or error data was calculated using data from the participants’ daily logbooks† (Scott et al., 2010, p. 253). Short-Term Memory: Conceptual Definition: â€Å"Mistakes involving medication administration, patient care procedures, and transcript issues† (Scott et al., 2010, p. 256). Operational Definition: â€Å"Error description was calculated using data from the participants’ daily logbooks† (Scott et al., 2010, p. 253). Problem Solving and Coping Conceptual Definition: Not conceptually defined but a possible definition is the ability to intercept and discover errors. Operational Definition: â€Å"Error description was calculated using data

Airline Industry Essay Example | Topics and Well Written Essays - 3250 words - 1

Airline Industry - Essay Example (Step stone case study) Basically, Lufthansa is an airline founded and based in Germany based. The airline has been unwavering to be one of the international companies that will guide the business inside and also through the 21st century (Gardner, 1996). During 1996, that the corporation was observed up-and-coming from an interlude of enormous transformation. Widespread reformation along with its privatization has at the moment geared up the corporation for a bright and promising opportunity within the exceedingly aggressive airline industry. The lines of attacks that have been implemented by the team at Lufthansa to evolve it into a cost-effective association have been triumphant. It was during the year 1994 that Lufthansa marked as being one of the most beneficial period during its entire history and establishment (Gardner; 1996). It also marked the 5 year spin from an unsuccessful state owned corporation to a commercial key international competitor, linking the years 1991 until 1996; this also revealed the competitor abilities that are present within the organization. On the other hand, the association was still inundated by declining profits at the speed of an approximate 2 percent per anum. The dare for Lufthansa is to carry on the transformation procedure in order to place the association at the right point for its longer period continued existence.(Lufthansa .pdf ) Identifying at least two Strategy options Before we outline and evaluate the strategic options for Lufthansa, we need to be aware of the elements that Lufthansa needs to work on: The need to strategically plan, by way of a more planned technique. The corporation needs to be aware of what is it that the airline actually wants to accomplish Secondly, the corporation should be able to assess how they as a corporation will manage their resources that they have to achieve their above set goals. Furthermore, as an international competitor, Lufthansa will need to define their individual function regulations as well as limitations. Now moving onto Porters generic strategies: Competitive Advantage Lower Cost DifferentiationBroad Target Narrow Target Lufthansa's comparative location inside the international airline industry establishes if the corporation along with its productivity is over or else less than the airline business average. The essential foundation of the over average success within the long run is to be able to create a maintained competitive advantage. There exist two essential forms of competitive advantage that a corporation can have power over: the low expenditure otherwise differentiation. The two fundamental sorts of competitive advantage united with the possibility of actions for which Lufthansa seeks out to accomplish them, show the way to the three generic strategies for accomplishing the more than average performance within the international airline industry: the elements of cost leadership, the differentiation, in addition to the focus. The two suggested strategies that Lufthansa should opt for are the Cost as well as the differentiatio

Will the Mexican car company, Mastretta, ever reach the reputation Essay

Will the Mexican car company, Mastretta, ever reach the reputation that the current top car companies receive - Essay Example The report is due by the end of this month. 2.0 Procedure Comprehensive secondary research has been carried out to explore the issue and find relevant solutions for the same. The resources that have been mainly consulted are consumer brand awareness reports of the automobile industry and also reports pertaining to the automobile industry of Mexican automobile industry. 3.0 Findings 3.1 Industry Outlook Similar to the discovery of airplanes, the materialization of automobiles has a profound impact on the everyday life of human beings. The automobile industry is critical constituent in the fabric of global economy (Kazmi 6). The global automobile industry enormously contributes to the wealth and health of millions of inhabitants of the world. Hence, it is important that the automotive sector retain its innovative edge and competitiveness. It has been found that the auto manufacturing industry is highly labour intensive and capital. Some of the major costs associated with manufacturing and marketing of the automobile products are labour cost, cost of procuring raw materials and cost associated with advertisement and distribution. A large proportion of the industry is driven by revenues generated from selling of automobiles. However, the equipments and parts market also offer lucrative opportunities to the players. In the North American market, the industry is principally dominated by three major players namely Ford Motor Co., General Motors and Chrysler. In addition, the foreign players such as Honda Motor Co and Toyota Motor Co are other major players (General Motors, â€Å"Annual Report: Financial Highlights†) According to several industry analysts, the automobile industry depends heavily on the tastes and trends of consumers (Adair 6-10). Although, a large segment of the overall sales of automobiles generates from the business to business selling and car renting companies, but the end consumer always has the highest priority as they are the one who drive the growth and progression of the industry (Bhushan and Rai 12-18). Another vital caveat for analyzing an automobile company is the intentions of the company pertaining to their planning and redesign. In this rapidly changing business environment companies, irrespective of the nature and business line are continuously trying to bring changes into their system of operation and product design. As a result of that, it is noticed that every year companies come up with either a new car or modify their existing car. These changes have massive impact on the success or failure of a company as consumers are directly influenced by it. In addition, there are certain other factors such as the price; the variation of models as well as the status it reflects in the social world is also a major factor (Hicks 14-21). Therefore, the discussion makes it evident that there are several factors responsible for the success of an automobile company as well as for gaining reputation in the market. In the context of the automotive industry of Mexico, it is characterized by steady growth and high potential. The industry accounts for 3.6% of the overall GDP of the country and is growing at a steady pace (Esenaro, â€Å"Luxury Car Manufacturing on A Roll in Mexico†). Despite the economic crisis, where majority of automobile players were seriously affected, and resulted in minimization of various expenditures, have once again occupied the emblematic position in the national economy of the country. As of latest figures the country ranks among the top 10 car manufacturing countries of the world. Figure 1 –

Airline Industry Essay Example | Topics and Well Written Essays - 3250 words - 1

Airline Industry - Essay Example (Step stone case study) Basically, Lufthansa is an airline founded and based in Germany based. The airline has been unwavering to be one of the international companies that will guide the business inside and also through the 21st century (Gardner, 1996). During 1996, that the corporation was observed up-and-coming from an interlude of enormous transformation. Widespread reformation along with its privatization has at the moment geared up the corporation for a bright and promising opportunity within the exceedingly aggressive airline industry. The lines of attacks that have been implemented by the team at Lufthansa to evolve it into a cost-effective association have been triumphant. It was during the year 1994 that Lufthansa marked as being one of the most beneficial period during its entire history and establishment (Gardner; 1996). It also marked the 5 year spin from an unsuccessful state owned corporation to a commercial key international competitor, linking the years 1991 until 1996; this also revealed the competitor abilities that are present within the organization. On the other hand, the association was still inundated by declining profits at the speed of an approximate 2 percent per anum. The dare for Lufthansa is to carry on the transformation procedure in order to place the association at the right point for its longer period continued existence.(Lufthansa .pdf ) Identifying at least two Strategy options Before we outline and evaluate the strategic options for Lufthansa, we need to be aware of the elements that Lufthansa needs to work on: The need to strategically plan, by way of a more planned technique. The corporation needs to be aware of what is it that the airline actually wants to accomplish Secondly, the corporation should be able to assess how they as a corporation will manage their resources that they have to achieve their above set goals. Furthermore, as an international competitor, Lufthansa will need to define their individual function regulations as well as limitations. Now moving onto Porters generic strategies: Competitive Advantage Lower Cost DifferentiationBroad Target Narrow Target Lufthansa's comparative location inside the international airline industry establishes if the corporation along with its productivity is over or else less than the airline business average. The essential foundation of the over average success within the long run is to be able to create a maintained competitive advantage. There exist two essential forms of competitive advantage that a corporation can have power over: the low expenditure otherwise differentiation. The two fundamental sorts of competitive advantage united with the possibility of actions for which Lufthansa seeks out to accomplish them, show the way to the three generic strategies for accomplishing the more than average performance within the international airline industry: the elements of cost leadership, the differentiation, in addition to the focus. The two suggested strategies that Lufthansa should opt for are the Cost as well as the differentiatio

U.S. Employment Regulations Essay Example | Topics and Well Written Essays - 1250 words - 3

U.S. Employment Regulations - Essay Example The primary goal of the company is to comply with existing American laws regarding employment, as well as to deter and to respond to all kinds of harassment in the workplace. The white paper explains related U.S. employment regulations and discusses implications for the company’s global workplace. Employment Laws This section discusses all critical employment laws. Most of them are obtained from the Employment Law Guide: Laws, Regulations, and Technical Assistance Services of the DOL. Wages and Hours Worked: Minimum Wage and Overtime Pay The Wage and Hour Division (WHD) implements the Fair Labor Standards Act (FLSA). The Act provides policies for minimum wages, overtime pay, recordkeeping, and child labor. It gives exemptions for minimum wage and overtime pay (See Appendix A). The Act obliges employers of covered employees to pay them a minimum wage of not less than $7.25 per hour (DOL, 2004). Youth employees, who are below 20 years of age, may receive a minimum wage of not lo wer than $4.25 an hour, during the first 90 successive calendar days of employment (DOL, 2004). Employers are not allowed to terminate existing employees to hire youth or people whom they can pay the youth minimum wage (DOL, 2004). Furthermore, employers can adopt a piece-rate basis in paying employees, as long as the latter get at least the required minimum hourly wage rate and overtime for hours worked that are more than 40 hours in a workweek (DOL, 2004). In addition, the Act allows the employment of particular individuals at wage rates below the statutory minimum wage, as long as they get certificates from the Department of Labor.

A Separate Peace By John Knowles Essay Example for Free

A Separate Peace By John Knowles Essay In A Separate Peace by John Knowles, it is evident that Finny and Leper undergo the most traumatic experiences from the Class of 1943. Through these experiences, both characters lose much of their innocence and naivety. Finny, upon learning of the existence of the war and Genes moment of hatred, learns to accept realities and perceive the world as it is, not as the perfect childlike image he wants it to be. However, when Leper enlists in the army, he quickly begins to have hallucinations because the reality is too much for him to handle. Nevertheless, he eventually overcomes his insanity and seems to be fairly mentally stable by the end of the novel. Although Finny and Lepers traumas are the source of a major loss of purity and childhood, they are also the cause of post-tramautic growth and a necessary increase in maturity. Finny goes through several perception-changing events during the course of the novel, but the event that cements his departure from childhood is the acceptance that Gene deliberately shook Finny off the tree. This shock was caused by his own inability to accept the truth in the first place. Despite the ease of denying unwanted information and living in a dream world, it is mentally unhealthy for Finny because of the shock caused upon finally believing the truth. Immediately after Genes confession of jouncing the limb, Gene remarks that Finny looked older than I had ever seen him (62). Finny, however, does not yet comprehend feelings of jealousy and betrayal, as he has hardly had any himself and finds it difficult to think of anothers point of view; the information registers on his face, but before he has time to process it and mature he rejects the idea entirely. Gene states it occurred to me that this could be an even deeper injury than what I had done before (62). The reality of adult themes such as jealousy, betrayal, and hate is what hurts Finny most, not the crippling injury itself. Another reality that takes away from Finnys nescience is the war (when he finally believes in its existence). The most dramatic and stunning war in recent history, World War II had a huge impact on millions of lives worldwide. Yet Phineas refused to believe in the war, and instead created a fantasy in which he was the one of the only people who knew that it was all a hoax. When Gene, in disbelief from Finnys opinion, questions Finny on why he is the only person who is aware of the stuffed shirts' (107) plot to  suppress happiness, Finny emotionally bursts out it is because he has suffered (108). Apparently, Finny has visualized this hoax to shield himself from the disadvantages of his disability, such as enlisting. Nevertheless, Finny quickly accepts the truth of the war after seeing Leper in a mentally disturbed state of mind. The image of what the war did to someone who used to be close to him shook him out of his dream world and spurred his emotional growth. When Finny, at the end of the novel, learned to accept the realities and avoid using denial to cope with shock, he lost the last of his childhood innocence. Leper is easily one of the most naive and innocent characters during the Summer Session. His good-naturedness and passive fascination with nature is such an ideal image of innocence that it seems almost depressing to see him in the traumatized state of mind after enlisting. Even while everyone is volunteering to shovel snow to aid the war effort and discussing their plans for which division to enlist in, Leper is only concerned with the beauty of nature and skis to a beaver dam to watch the beavers develop and build their dam. He is moved to join the army not for vain images of glory and glamor like the other students, but rather for the beauty of skiing down a mountain. Obviously, he soon finds that the army is too much for him, and while absent from the ongoings at Devon he loses every shred of innocence and guilelessness that previously surrounded his character. When Gene meets him, his psyche is obviously changed to such a point that he has hallucinations and other symptoms of sc hizophrenia, caused by his rapid ascension into adult matters. He does not accept reality nearly as well as Finny does because his character was far more innocuous at the start of the novel. So many of his images of the world are shattered that it can be seen that he feels like he has little familiarity to hold onto. He grasps to every gleam of regularity and unchangeable function, which explains his preference for spending time in the dining room of his house simply because he knows that three daily meals will be served there on a consistent basis. However, his time at home seems to have given him time to cope with the images of adulthood. Upon his return to Devon, he seems mentally well and a much more decisive authority than ever before. He accurately and forcefully convicts Gene of jouncing the limb in his new, confident voice (166).  Gene describes Leper during the trial as all energy (165). Evidently, Leper has dealt with the loss of innocence caused by his abrupt initiation into adulthood and has become a more confident, self-assured pe rson in spite of it. Knowles makes it apparent throughout A Separate Peace that while the loss of innocence may often seem to be a sad or tragic event, it is necessary to pave the way for maturation and a transition into adulthood. Had Finny never accepted the truth of the tragedy that occurred to him, he would have never matured beyond his carefree summer days. And had Leper kept living in his own world of vivid imaginations, he would have never developed into the sanguine individual he becomes at the end of the novel. While the loss of innocence is partly a lugubrious experience, John Knowles portrays it as a necessity a part of maturation and growth that leads to adulthood and self-fulfillment.

Study On The Financial Sources For SMEs

Study On The Financial Sources For SMEs Introduction SMEs are those industries, which are unquoted in a stock exchange, run by few individuals or a type of family businesses having connection with shareholders. According to South West Venture Fund, SME is a company or business that has less than 250 employees and has an annual turnover not exceeding approximately  £24 million. SME sector is very large in UK economy. There are 3.7 million businesses in UK according to the survey conducted in 2003 by Department of Trade and Industries (DTI) and 99% of those are small and medium sized and survey also suggested that UK gains 50% of its total turnover from SME sector. On the other hand according to the report of HM Treasury 2008 there are 4.7 million SMEs in the UK and are responsible for more than 52 per cent of total UK business turnover. Therefore it can be seen that SMEs have an important role to play to drive UK growth and the average productivity of SMEs has increased in the last ten years. On the other hand SMEs are struggling in accessing to finance whereas there are many sources of finance available in UK. The main problem with SMEs to obtain finance is that of uncertainty. Investors most of the time dont rely on SMEs in investing because SMEs does not have a long track record of success. Banks are quite nerves of SMEs to investment because SMEs represent high credit risk. The problem is, banks are not increasing the loan amount without increasing security given and most of the SME owners are unable to provide security. There are many SMEs without tangible assets to use as a security for all lenders. All the financial sources for SMEs are listed below with brief description. Business Angles Business angles are private individuals who invest their own assets in SME or start-up businesses. Business angles also share their personal business experience with other entrepreneurs. LBA (London Business Angles) provides great services to innovative starting-up businesses who seeks the capital more than  £100 k for their future growth. London Business Angle runs by Greater London Enterprise (GLE). The main reason behind investing by business angles is that they are very experienced and successful entrepreneurs and they not only provide finance they also train new business through sharing their experience. The fact on the other hand is only few companies can find business angles, LBA receive 1000 business plan and after the whole selection procedure only 42 business have been invited to invest with. Another group of business angles BBAA (British Business Angles Association) is also working to provide financial help to early stage businesses. Every year private individual or these business angles invest between  £800 million to  £1 billion in starting-up business and SMEs. Overdraft Financing Overdraft financing is another most popular way of accessing to finance for SMEs. In overdraft financing, payments are made from the current account of business when the amount exceeds the available balance. Through the overdraft facility business gets short-term funds whereas the amount which is loaned is repayable according to the bank demand. There are some benefits of overdraft facilities such as the borrowed amount can be changed within the limit and interest is only payable on the amount borrowed. The main disadvantages of overdrafts are, bank can ask to pay back the money very sooner than expected time, overdraft limit can be changed at any time by the bank, overdraft facility cannot be used if large amount is needed and the interest rate is higher than the bank loan. Some other factors must be considered when using overdraft facility to obtain finance. Such as the amount that is borrowed should not go beyond the given or agreed limit, interest also differs according to the am ount borrowed and the interest rate is higher than the bank base rate , sometime bank can charge the overdraft fee and finally overdraft cannot be obtained for long term. One more difficulty for SMEs to obtain finance through overdraft is SMEs can be asked to provide some kind of security depending on the size of overdraft facility. Security may be of any type for an example it can be tangible fixed assets or personal guarantees given by company directors. Venture Capital Venture capital provides long-term, committed share capital, to help unquoted companies grow and succeed. If an entrepreneur is looking to start-up, expand, buy-into a business, buy-out a business in which he works, turnaround or revitalise a company, venture capital could help do this. Obtaining venture capital is substantially different from raising debt or a loan from a lender. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of the success or failure of a business . Venture capital is invested in exchange for an equity stake in the business. As a shareholder, the venture capitalists return is dependent on the growth and profitability of the business. This return is generally earned when the venture capitalist exits by selling its shareholding when the business is sold to another owner. Venture capital in the UK originated in the late 18th century, when entrepreneurs found wealthy individuals to back their projects on an ad hoc basis. This informal method of financing became an industry in the late 1970s and early 1980s when a number of venture capital firms were founded. There are now over 100 active venture capital firms in the UK, which provide several billion pounds each year to unquoted companies mostly located in the UK. REVIEW OF LITERATURE Introduction It being any country, small and medium enterprises has become an integral part of it and provides remarkable contribution to its economy. SMEs play a pivotal role in job creation and in progress of country. Like UK, many countries now understand the importance of small business and started to diversify it for job creation and also for the long term development of the countrys economy. . SMEs constitute the majority of economies around the world, these highly contribute in private sector and one of which seems to be growing in folds with time. According to the reports of Bank of England (2003), approximately 54% of the total value is added by small and medium firms in the UK. In fact, in some sectors SMEs have contributed more than larger firms Entrepreneur and Entrepreneurship The word entrepreneur has been defined numerous times by the researchers in their research. There is no specific definition of entrepreneurship but there is a generally accepted definition which highlights its significant contribution in the growth of economy. An entrepreneur has the ability to provide momentum for the change, innovation in the traditional strategies and approach. They always try to introduce new ideas in the business market. Entrepreneur is someone who can gauge the financial risk during the business startup and has the ability to capitalize the opportunity of benefit of an enterprise. Besides, various researchers have determined different characteristics of an entrepreneur. For instance, according to Adler, 2002; Aldrich, 1989; Alstete, 2003; Anderson et al, 1992; Anna et al, 1999, an entrepreneur is very creative, skilful, innovative and always keen to explore new ideas and strategies. While, according to others the traits are Hunger for achievement Desire of total control Need of independence and leadership Low traditionalism Risk taker Dominance Moreover, Yonekura in 1984 suggested the characteristics like assertiveness, insistence, forward looking, critical thinking, creative, innovative, broad minded, creative etc. On the other hand, Burk (2002) proposed that optimistic, hard working and desire to achieve are the qualities which are common in entrepreneurs. There are various reasons for people to choose entrepreneurship and start their own business. This area has also been widely researched (Walker, 2004). Result of most of the studies done in this area show that people are motivated by personal and financial reasons like achievement need, independence, and the creation of wealth (Bird, 1989; Birley and Westhead, 1994; Burns, 1996; Hisrich, 1986; Kuratko et al., 1997). Generally, most of the studies suggest that personal internal reasons are more important motivations as compared to financial reasons in going into entrepreneurship (Gray, 1993). Despite of the above mentioned reasons, his/her present job situation also plays an important part and can influence them for business adoption. According to the Moore and Buttner (1997), unfavorable conditions experienced within the organization, for instance- lack of opportunities and less salary may also push them to start their own business. Furthermore, people who are jobless are also sometimes forced to become entrepreneurs (Still and Guerin, 1991), even though the clarity of the entry of business and its form are not that clear to them at the start (Praag, 2003; Vodopivec, 1998; Walker, 2004; Walker and Brown, 2004; Burke et al., 2002; Burns, 1996; Buttner Moore, 1997; - Process Involved in Business Start up Over the period of time remarkable changes have taken place in the work environment and culture of small and medium enterprises. The failure or the success of any organization depends upon the initial or the kick off stage of the business. The start up of any business activity depends upon the manner or the way in which the business makes arrangements or provisions of funds. The growth of the firm is the most important aspect and has to be done with taking care so that it can grow up to its full potential (Carter et. al., 1996; Carter Anderson, 2001; Carter Cannon, 1988; Chaganti Parasuraman, 1996; Cliff, 1998). Steps involved in the start up of any business activity can be classified as under:- Business Start up:- The theoretical aspects behind the set up or start up of any business are quite different from the practical ones which can be classified as under:- The creation of an idea Theory:- The start-up of the business by the entrepreneur begins with the setting of an idea. Idea is the stepping stone on which the business relies and most of the aspects of the business are considered in the initial idea itself. There are pros and corns to everything and in the business set-up the setting of idea itself leads to the same. Opportunity Recognition The recognition of the right opportunity at the right point in time is what the entrepreneur must be able do. The task of recognizing opportunity for the same is not an easy task at all. There may be loads of opportunities which arise in the market like they may be in the form of a new product or service that has to be offered to the customer (Kotler, 1972; Deshpande, 1983). Research of the market and forming of the Business plan Research plays a key role before the starting up any activity and business also demands for the same i.e. to conduct research and then formulate a business plan. The key role in set up of any business plan is by carrying out SWOT analysis of the same which means to recognize the Strength Weakness Opportunities and Threats that the organization has to offer (Kotler, 1990; Dyer, 1994). Finance Arrangement Finance is the blood stream of any organization and without the induction of finance no organization can operate. There are loads of sources available for the firms both small and medium sized. Basically for the small and medium enterprises there are mainly two sources of finance internal and external. The basic difference between the internal and external source is the element of interest. Internal sources as the name suggest is from friends family and the saving element and external is all that which leads to the payment of interest basically borrowed funds from sources such as banks, financial institutions etc. (Feldman Bolino, 2000; Fielden et al., 2003; Fitzgerald and Muske, 2002; Leazar, 2002). The small and medium firms in the initial stage cannot afford to bear any additional cost and the interest element also becomes a burden for them and they are mostly concerned with the internal sources of finance i.e. the money invested in the firms by family and friends (Lee Mathews, 1999; Hisrich, 1986). The other aspect of business is the big business houses which have their operation on a large scale and the finance is procured by them from banks and other leading financial institutions. Optimum Use of Resources Resources are the tools and materials which form the crux of any organization and making a proper use of the same plays a very important role in the growth and overall development of the organization. It is vital to make the best possible use of resources as in small towns the scope of business activities is limited as compared to big cities wherein the opportunities as well as the resources required are more and readily available Gimeno, 1997; Gray, 1993; Gatewood et al., 1995; Gundry Welsch, 2001) Resources are portrayed as being distanced from main markets and main centres of business activity, have lower and more dispersed population, a weaker infrastructure, local markets are limited due to lower population. Despite the apparent difficulties in starting up and running a business to towns, the number of businesses has grownà ¢Ã¢â€š ¬?. (Anderson, 1997) Problems in Starting Up a Business When starting up a business, the owner is bound to face some problems. There are basic steps and procedures that should be followed by the entrepreneur, while starting a business. But the problem arises when the successful implementation of these steps becomes difficult, due to the problems in the market. Sometimes things do no happen in reality as they were expected and also it may take longer time than expected (Martins et al., 2002; Marschack, 1994; Morrison, 2000; Olson, 1992; Praag, 2003; Rainbird, 1991). Major problems in starting up a business can be classified as: Goodwill- When a business is new, it lacks good reputation in the market, which is called Goodwill. In business, it is very important to have goodwill. It means that the business has trustworthy image in the market. Sometimes, just because of lack of goodwill, customers dont trust the company (Reynolds, 2000; Robichaud et al., 2001). Market Prediction- It is essential for the entrepreneur to have the market predictions. The market trends keep on fluctuating. Thus the entrepreneur has to mould himself according to the market situations. If he does not maintain pace with the market trends it becomes very difficult to be in the race. This is not a very easy job (Robinson, 1994; Shane, 1995; Smith, 2000). Financial Gap- The existence of a financial gap arises because demand from small firms is greater than the willingness of financial institutions to supply the finance at current market conditions. For finance such as bank loans, these gaps may be termed as credit rationing (Stanworth Stanworth, 1997). Getting the premises in prime location- Getting a good location to set up the business is a very big issue. The entrepreneur should keep in mind to get the best location. If the location is good and is very close to all the available resources then he can grab the opportunities of using these resources (Taylor, 1980). Judging the customer expectations- It is very hard to match the ever changing expectation and demands of the customers. It is very difficult to have an exact idea about the choice of the customers. In this case it becomes very difficult for the new firms to have an idea about the customer expectations (Timmons et al., 1985). Small and Medium Enterprises in the United Kingdom Source: http://stats.berr.gov.uk/ed/sme/smestats2008-ukspr.pdf. According to the department for business innovation and skills the profile of the small and medium scale enterprises are as follows: As per to the reports there were approximately 4.81 million private sector enterprises in the UK during the starting of 2008, which showed the increase of 104,0003 (2.2 per cent) since the start of 2007. These are the highest levels after the time series began in 1994. Approximately, 23.1 million people were employed by these enterprises with an estimated combined annual turnover of  £3,000 billion. Moreover, 99.9 percent of all enterprises were together accounts by the Small and medium-sized enterprises (SMEs) and 59.4 per cent of private sector employment and 50.1 percent of private sector turnover. Employment in SMEs is estimated at 13.7 million, 287,000 (2.1 per cent) higher than in 2007.Turnover in SMEs is estimated at  £1,500 billion,  £61 billion (4.2 per cent) higher than 2007.More industries experienced growth in the number of enterprises between the start of 2007 and the start of 2008, than experienced a fall. In percentage terms, the biggest increases were in the Mining and Quarrying; Electricity, Gas and Water Supply (19.3 per cent) and Financial Intermediation (10.2 per cent) sectors and the biggest falls in the number of enterprises were in the Manufacturing (- 6.9 per cent) and Other Community, Social and Personal Service Activities (-4.7per cent) sectors (http://stats.berr.gov.uk/ed/sme/smestats2008-ukspr.pdf).à ¢Ã¢â€š ¬? As such, out of the 4.81 million private enterprises in the United Kingdom, 99.9 percent are classified as small and medium scale enterprises (SMEs) and they are responsible for 59.4 percent of employment in the country as well as 50.1 percent of private sector turnover. The sector also experienced growth from 2007 to 2008 (http://stats.berr.gov.uk/ed/sme/smestats2008-ukspr.pdf). Most of these private enterprises are (see Table 1) small which is 99.3 percent of the total and they employ about 0 to 49 employees per enterprise while the medium enterprises is 0.6 percent which numbered at 27,000 enterprises and employs from 50 to 249 employees per firm. The large enterprises employs more than 250 employees per firm percent which numbered at 27,000 enterprises and employs from 50 to 249 employees per firm. ISSUES FOR SMEs AND ENTREPRENEURS According to Deakins and Freel (2003), small and medium sized firms do not easily get finance because of the restrictions imposed on them. Notably these SMEs have very less equity and very high risk is associated with them. As a result, most of the sources of finance are not accessible, for instance Stock Exchange. There are mainly two sources that entrepreneurs use that is Internal Source and External Source. Internal source includes personal equity, which are usually remortgages, savings and money taken from friends and family members. While external sources of finance comprises loan taken from bank, venture capitalist, formal investors. Few more sources include leasing, hire purchase and factoring. However, there are various sources of finance available for the SMEs; it is worth discussing the problems faced by the entrepreneurs and constraints of financing. Major issues for SMEs are Financial gap Getting finance from bank Role of security Credit scoring Financial Gap: It mainly occurs when the financial need of SMEs is not fulfilled by financial institutions because of the current market conditions the present situation (credit crunch) further adding problems to the same. It happens when the demand side of the curve exceeds the supply. However, it is still a debatable topic whether this gap is the result of information asymmetries or it is due to the reputational effects. Informational asymmetries are basically considered as the imperfect information provided to the financing institutions, which suggests that there will be insufficient funds available for the firms (Stiglits and Weiss, 1981). According to Shane and Cable (2008), it is likely that few firms specially manufacturing and technology based companies are often reluctant to give full information about their company to avoid the disclosure which can make it easier for others to use it. Moreover, there are few more categories which can face financial gap, such as young entrepreneurs and those who belong to remote areas. Young entrepreneurs mainly lack to provide the security, while for the entrepreneurs in the remote areas, it is quite difficult to get access with the banks (OCED, 2008) Getting finance from bank: However, banks are easily accessible; it is less likely that entrepreneurs get favourable offers from them. Short-term financing given by banks only looks theoretically attractive. Besides, banks also face issue in assessing the proposition from the borrower, which generally arises when both provider and borrower share different set of information. For banks, two main issues are: Adverse Selection Moral Hazard Adverse Selection: This arises when a bank is unable to assess a proposition correctly. For instance, when it refuses to provide for a proposition which could have been successful or when it accepts the position which results as failure. Moral Hazard: It causes more serious problem for banks and ultimately causes problems for the entrepreneurs having less/no security to offer. It can occur when a firm misuses the security-free financing from the banks, as there is no guarantee taken from the firm to repay the loan. This is a monitoring problem for banks and for comparatively smaller amount of loans; it is not economic to observe them closely. However, this creates problem for the entrepreneurs who lack sufficient equity and security. Role of security: This has now been widely used to overcome the shortcomings like moral hazard and adverse selection. However, bank officers can also choose to have frequent monitoring of the information to reduce the adverse selection, a cost minimisation approach (role of security) seems to be a better option. Furthermore, collateral seems to be a better option because it ensures commitment from the borrower and allows bank to make safer deal. It also enhances the chances of loss recovery in case of adverse selection. Credit Scoring:- Nowadays, this computerized technique has been widely used by banks. Credit scoring is based on considering various variables of the borrower such as, occupation, post code of home address, previous payment records and other commitments Taking all the above mentioned things into consideration, a computerized acceptance or rejection report is generated. Credit scoring has brought a remarkable reduction in decision making for the bank managers. In most of the leading banks of UK like NatWest, Barclays, Lloyds/TSB, Bank of Scotland, use different systems to measure credit of the loan applicant. Albeit, few above mentioned banks have adopted this technique completely, there are some banks still relying and using both methods (Credit scoring and decision making) However, credit scoring has proved to be a boon for the banks, it has some demerits as well. It only judges the applications on the basis of past records. This technique may reject the proposal which sounds beneficial and successful but dont have good credit history and past records. Study On The Financial Sources For SMEs Study On The Financial Sources For SMEs Introduction SMEs are those industries, which are unquoted in a stock exchange, run by few individuals or a type of family businesses having connection with shareholders. According to South West Venture Fund, SME is a company or business that has less than 250 employees and has an annual turnover not exceeding approximately  £24 million. SME sector is very large in UK economy. There are 3.7 million businesses in UK according to the survey conducted in 2003 by Department of Trade and Industries (DTI) and 99% of those are small and medium sized and survey also suggested that UK gains 50% of its total turnover from SME sector. On the other hand according to the report of HM Treasury 2008 there are 4.7 million SMEs in the UK and are responsible for more than 52 per cent of total UK business turnover. Therefore it can be seen that SMEs have an important role to play to drive UK growth and the average productivity of SMEs has increased in the last ten years. On the other hand SMEs are struggling in accessing to finance whereas there are many sources of finance available in UK. The main problem with SMEs to obtain finance is that of uncertainty. Investors most of the time dont rely on SMEs in investing because SMEs does not have a long track record of success. Banks are quite nerves of SMEs to investment because SMEs represent high credit risk. The problem is, banks are not increasing the loan amount without increasing security given and most of the SME owners are unable to provide security. There are many SMEs without tangible assets to use as a security for all lenders. All the financial sources for SMEs are listed below with brief description. Business Angles Business angles are private individuals who invest their own assets in SME or start-up businesses. Business angles also share their personal business experience with other entrepreneurs. LBA (London Business Angles) provides great services to innovative starting-up businesses who seeks the capital more than  £100 k for their future growth. London Business Angle runs by Greater London Enterprise (GLE). The main reason behind investing by business angles is that they are very experienced and successful entrepreneurs and they not only provide finance they also train new business through sharing their experience. The fact on the other hand is only few companies can find business angles, LBA receive 1000 business plan and after the whole selection procedure only 42 business have been invited to invest with. Another group of business angles BBAA (British Business Angles Association) is also working to provide financial help to early stage businesses. Every year private individual or these business angles invest between  £800 million to  £1 billion in starting-up business and SMEs. Overdraft Financing Overdraft financing is another most popular way of accessing to finance for SMEs. In overdraft financing, payments are made from the current account of business when the amount exceeds the available balance. Through the overdraft facility business gets short-term funds whereas the amount which is loaned is repayable according to the bank demand. There are some benefits of overdraft facilities such as the borrowed amount can be changed within the limit and interest is only payable on the amount borrowed. The main disadvantages of overdrafts are, bank can ask to pay back the money very sooner than expected time, overdraft limit can be changed at any time by the bank, overdraft facility cannot be used if large amount is needed and the interest rate is higher than the bank loan. Some other factors must be considered when using overdraft facility to obtain finance. Such as the amount that is borrowed should not go beyond the given or agreed limit, interest also differs according to the am ount borrowed and the interest rate is higher than the bank base rate , sometime bank can charge the overdraft fee and finally overdraft cannot be obtained for long term. One more difficulty for SMEs to obtain finance through overdraft is SMEs can be asked to provide some kind of security depending on the size of overdraft facility. Security may be of any type for an example it can be tangible fixed assets or personal guarantees given by company directors. Venture Capital Venture capital provides long-term, committed share capital, to help unquoted companies grow and succeed. If an entrepreneur is looking to start-up, expand, buy-into a business, buy-out a business in which he works, turnaround or revitalise a company, venture capital could help do this. Obtaining venture capital is substantially different from raising debt or a loan from a lender. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of the success or failure of a business . Venture capital is invested in exchange for an equity stake in the business. As a shareholder, the venture capitalists return is dependent on the growth and profitability of the business. This return is generally earned when the venture capitalist exits by selling its shareholding when the business is sold to another owner. Venture capital in the UK originated in the late 18th century, when entrepreneurs found wealthy individuals to back their projects on an ad hoc basis. This informal method of financing became an industry in the late 1970s and early 1980s when a number of venture capital firms were founded. There are now over 100 active venture capital firms in the UK, which provide several billion pounds each year to unquoted companies mostly located in the UK. REVIEW OF LITERATURE Introduction It being any country, small and medium enterprises has become an integral part of it and provides remarkable contribution to its economy. SMEs play a pivotal role in job creation and in progress of country. Like UK, many countries now understand the importance of small business and started to diversify it for job creation and also for the long term development of the countrys economy. . SMEs constitute the majority of economies around the world, these highly contribute in private sector and one of which seems to be growing in folds with time. According to the reports of Bank of England (2003), approximately 54% of the total value is added by small and medium firms in the UK. In fact, in some sectors SMEs have contributed more than larger firms Entrepreneur and Entrepreneurship The word entrepreneur has been defined numerous times by the researchers in their research. There is no specific definition of entrepreneurship but there is a generally accepted definition which highlights its significant contribution in the growth of economy. An entrepreneur has the ability to provide momentum for the change, innovation in the traditional strategies and approach. They always try to introduce new ideas in the business market. Entrepreneur is someone who can gauge the financial risk during the business startup and has the ability to capitalize the opportunity of benefit of an enterprise. Besides, various researchers have determined different characteristics of an entrepreneur. For instance, according to Adler, 2002; Aldrich, 1989; Alstete, 2003; Anderson et al, 1992; Anna et al, 1999, an entrepreneur is very creative, skilful, innovative and always keen to explore new ideas and strategies. While, according to others the traits are Hunger for achievement Desire of total control Need of independence and leadership Low traditionalism Risk taker Dominance Moreover, Yonekura in 1984 suggested the characteristics like assertiveness, insistence, forward looking, critical thinking, creative, innovative, broad minded, creative etc. On the other hand, Burk (2002) proposed that optimistic, hard working and desire to achieve are the qualities which are common in entrepreneurs. There are various reasons for people to choose entrepreneurship and start their own business. This area has also been widely researched (Walker, 2004). Result of most of the studies done in this area show that people are motivated by personal and financial reasons like achievement need, independence, and the creation of wealth (Bird, 1989; Birley and Westhead, 1994; Burns, 1996; Hisrich, 1986; Kuratko et al., 1997). Generally, most of the studies suggest that personal internal reasons are more important motivations as compared to financial reasons in going into entrepreneurship (Gray, 1993). Despite of the above mentioned reasons, his/her present job situation also plays an important part and can influence them for business adoption. According to the Moore and Buttner (1997), unfavorable conditions experienced within the organization, for instance- lack of opportunities and less salary may also push them to start their own business. Furthermore, people who are jobless are also sometimes forced to become entrepreneurs (Still and Guerin, 1991), even though the clarity of the entry of business and its form are not that clear to them at the start (Praag, 2003; Vodopivec, 1998; Walker, 2004; Walker and Brown, 2004; Burke et al., 2002; Burns, 1996; Buttner Moore, 1997; - Process Involved in Business Start up Over the period of time remarkable changes have taken place in the work environment and culture of small and medium enterprises. The failure or the success of any organization depends upon the initial or the kick off stage of the business. The start up of any business activity depends upon the manner or the way in which the business makes arrangements or provisions of funds. The growth of the firm is the most important aspect and has to be done with taking care so that it can grow up to its full potential (Carter et. al., 1996; Carter Anderson, 2001; Carter Cannon, 1988; Chaganti Parasuraman, 1996; Cliff, 1998). Steps involved in the start up of any business activity can be classified as under:- Business Start up:- The theoretical aspects behind the set up or start up of any business are quite different from the practical ones which can be classified as under:- The creation of an idea Theory:- The start-up of the business by the entrepreneur begins with the setting of an idea. Idea is the stepping stone on which the business relies and most of the aspects of the business are considered in the initial idea itself. There are pros and corns to everything and in the business set-up the setting of idea itself leads to the same. Opportunity Recognition The recognition of the right opportunity at the right point in time is what the entrepreneur must be able do. The task of recognizing opportunity for the same is not an easy task at all. There may be loads of opportunities which arise in the market like they may be in the form of a new product or service that has to be offered to the customer (Kotler, 1972; Deshpande, 1983). Research of the market and forming of the Business plan Research plays a key role before the starting up any activity and business also demands for the same i.e. to conduct research and then formulate a business plan. The key role in set up of any business plan is by carrying out SWOT analysis of the same which means to recognize the Strength Weakness Opportunities and Threats that the organization has to offer (Kotler, 1990; Dyer, 1994). Finance Arrangement Finance is the blood stream of any organization and without the induction of finance no organization can operate. There are loads of sources available for the firms both small and medium sized. Basically for the small and medium enterprises there are mainly two sources of finance internal and external. The basic difference between the internal and external source is the element of interest. Internal sources as the name suggest is from friends family and the saving element and external is all that which leads to the payment of interest basically borrowed funds from sources such as banks, financial institutions etc. (Feldman Bolino, 2000; Fielden et al., 2003; Fitzgerald and Muske, 2002; Leazar, 2002). The small and medium firms in the initial stage cannot afford to bear any additional cost and the interest element also becomes a burden for them and they are mostly concerned with the internal sources of finance i.e. the money invested in the firms by family and friends (Lee Mathews, 1999; Hisrich, 1986). The other aspect of business is the big business houses which have their operation on a large scale and the finance is procured by them from banks and other leading financial institutions. Optimum Use of Resources Resources are the tools and materials which form the crux of any organization and making a proper use of the same plays a very important role in the growth and overall development of the organization. It is vital to make the best possible use of resources as in small towns the scope of business activities is limited as compared to big cities wherein the opportunities as well as the resources required are more and readily available Gimeno, 1997; Gray, 1993; Gatewood et al., 1995; Gundry Welsch, 2001) Resources are portrayed as being distanced from main markets and main centres of business activity, have lower and more dispersed population, a weaker infrastructure, local markets are limited due to lower population. Despite the apparent difficulties in starting up and running a business to towns, the number of businesses has grownà ¢Ã¢â€š ¬?. (Anderson, 1997) Problems in Starting Up a Business When starting up a business, the owner is bound to face some problems. There are basic steps and procedures that should be followed by the entrepreneur, while starting a business. But the problem arises when the successful implementation of these steps becomes difficult, due to the problems in the market. Sometimes things do no happen in reality as they were expected and also it may take longer time than expected (Martins et al., 2002; Marschack, 1994; Morrison, 2000; Olson, 1992; Praag, 2003; Rainbird, 1991). Major problems in starting up a business can be classified as: Goodwill- When a business is new, it lacks good reputation in the market, which is called Goodwill. In business, it is very important to have goodwill. It means that the business has trustworthy image in the market. Sometimes, just because of lack of goodwill, customers dont trust the company (Reynolds, 2000; Robichaud et al., 2001). Market Prediction- It is essential for the entrepreneur to have the market predictions. The market trends keep on fluctuating. Thus the entrepreneur has to mould himself according to the market situations. If he does not maintain pace with the market trends it becomes very difficult to be in the race. This is not a very easy job (Robinson, 1994; Shane, 1995; Smith, 2000). Financial Gap- The existence of a financial gap arises because demand from small firms is greater than the willingness of financial institutions to supply the finance at current market conditions. For finance such as bank loans, these gaps may be termed as credit rationing (Stanworth Stanworth, 1997). Getting the premises in prime location- Getting a good location to set up the business is a very big issue. The entrepreneur should keep in mind to get the best location. If the location is good and is very close to all the available resources then he can grab the opportunities of using these resources (Taylor, 1980). Judging the customer expectations- It is very hard to match the ever changing expectation and demands of the customers. It is very difficult to have an exact idea about the choice of the customers. In this case it becomes very difficult for the new firms to have an idea about the customer expectations (Timmons et al., 1985). Small and Medium Enterprises in the United Kingdom Source: http://stats.berr.gov.uk/ed/sme/smestats2008-ukspr.pdf. According to the department for business innovation and skills the profile of the small and medium scale enterprises are as follows: As per to the reports there were approximately 4.81 million private sector enterprises in the UK during the starting of 2008, which showed the increase of 104,0003 (2.2 per cent) since the start of 2007. These are the highest levels after the time series began in 1994. Approximately, 23.1 million people were employed by these enterprises with an estimated combined annual turnover of  £3,000 billion. Moreover, 99.9 percent of all enterprises were together accounts by the Small and medium-sized enterprises (SMEs) and 59.4 per cent of private sector employment and 50.1 percent of private sector turnover. Employment in SMEs is estimated at 13.7 million, 287,000 (2.1 per cent) higher than in 2007.Turnover in SMEs is estimated at  £1,500 billion,  £61 billion (4.2 per cent) higher than 2007.More industries experienced growth in the number of enterprises between the start of 2007 and the start of 2008, than experienced a fall. In percentage terms, the biggest increases were in the Mining and Quarrying; Electricity, Gas and Water Supply (19.3 per cent) and Financial Intermediation (10.2 per cent) sectors and the biggest falls in the number of enterprises were in the Manufacturing (- 6.9 per cent) and Other Community, Social and Personal Service Activities (-4.7per cent) sectors (http://stats.berr.gov.uk/ed/sme/smestats2008-ukspr.pdf).à ¢Ã¢â€š ¬? As such, out of the 4.81 million private enterprises in the United Kingdom, 99.9 percent are classified as small and medium scale enterprises (SMEs) and they are responsible for 59.4 percent of employment in the country as well as 50.1 percent of private sector turnover. The sector also experienced growth from 2007 to 2008 (http://stats.berr.gov.uk/ed/sme/smestats2008-ukspr.pdf). Most of these private enterprises are (see Table 1) small which is 99.3 percent of the total and they employ about 0 to 49 employees per enterprise while the medium enterprises is 0.6 percent which numbered at 27,000 enterprises and employs from 50 to 249 employees per firm. The large enterprises employs more than 250 employees per firm percent which numbered at 27,000 enterprises and employs from 50 to 249 employees per firm. ISSUES FOR SMEs AND ENTREPRENEURS According to Deakins and Freel (2003), small and medium sized firms do not easily get finance because of the restrictions imposed on them. Notably these SMEs have very less equity and very high risk is associated with them. As a result, most of the sources of finance are not accessible, for instance Stock Exchange. There are mainly two sources that entrepreneurs use that is Internal Source and External Source. Internal source includes personal equity, which are usually remortgages, savings and money taken from friends and family members. While external sources of finance comprises loan taken from bank, venture capitalist, formal investors. Few more sources include leasing, hire purchase and factoring. However, there are various sources of finance available for the SMEs; it is worth discussing the problems faced by the entrepreneurs and constraints of financing. Major issues for SMEs are Financial gap Getting finance from bank Role of security Credit scoring Financial Gap: It mainly occurs when the financial need of SMEs is not fulfilled by financial institutions because of the current market conditions the present situation (credit crunch) further adding problems to the same. It happens when the demand side of the curve exceeds the supply. However, it is still a debatable topic whether this gap is the result of information asymmetries or it is due to the reputational effects. Informational asymmetries are basically considered as the imperfect information provided to the financing institutions, which suggests that there will be insufficient funds available for the firms (Stiglits and Weiss, 1981). According to Shane and Cable (2008), it is likely that few firms specially manufacturing and technology based companies are often reluctant to give full information about their company to avoid the disclosure which can make it easier for others to use it. Moreover, there are few more categories which can face financial gap, such as young entrepreneurs and those who belong to remote areas. Young entrepreneurs mainly lack to provide the security, while for the entrepreneurs in the remote areas, it is quite difficult to get access with the banks (OCED, 2008) Getting finance from bank: However, banks are easily accessible; it is less likely that entrepreneurs get favourable offers from them. Short-term financing given by banks only looks theoretically attractive. Besides, banks also face issue in assessing the proposition from the borrower, which generally arises when both provider and borrower share different set of information. For banks, two main issues are: Adverse Selection Moral Hazard Adverse Selection: This arises when a bank is unable to assess a proposition correctly. For instance, when it refuses to provide for a proposition which could have been successful or when it accepts the position which results as failure. Moral Hazard: It causes more serious problem for banks and ultimately causes problems for the entrepreneurs having less/no security to offer. It can occur when a firm misuses the security-free financing from the banks, as there is no guarantee taken from the firm to repay the loan. This is a monitoring problem for banks and for comparatively smaller amount of loans; it is not economic to observe them closely. However, this creates problem for the entrepreneurs who lack sufficient equity and security. Role of security: This has now been widely used to overcome the shortcomings like moral hazard and adverse selection. However, bank officers can also choose to have frequent monitoring of the information to reduce the adverse selection, a cost minimisation approach (role of security) seems to be a better option. Furthermore, collateral seems to be a better option because it ensures commitment from the borrower and allows bank to make safer deal. It also enhances the chances of loss recovery in case of adverse selection. Credit Scoring:- Nowadays, this computerized technique has been widely used by banks. Credit scoring is based on considering various variables of the borrower such as, occupation, post code of home address, previous payment records and other commitments Taking all the above mentioned things into consideration, a computerized acceptance or rejection report is generated. Credit scoring has brought a remarkable reduction in decision making for the bank managers. In most of the leading banks of UK like NatWest, Barclays, Lloyds/TSB, Bank of Scotland, use different systems to measure credit of the loan applicant. Albeit, few above mentioned banks have adopted this technique completely, there are some banks still relying and using both methods (Credit scoring and decision making) However, credit scoring has proved to be a boon for the banks, it has some demerits as well. It only judges the applications on the basis of past records. This technique may reject the proposal which sounds beneficial and successful but dont have good credit history and past records.