Developed Country Mustafa’s business
There are two main aspects to an Enterprise. One of them being Risks, the other Resources. Mustafa comes from a Less Economically Developed Country. Mustafa’s business is weighing passers-by on an old set of bathroom scales. In an enterprise the threat of risk can be disastrous. Risk arises from Choice. And choice also results in Opportunity Cost. Every time we make a choice we give up the opportunity to follow a different path. For example, I could either go to Scunthorpe or Skegness for my summer holidays. If I go to Scunthorpe I give up the opportunity to go to Skegness. The opportunity cost is the next best option we would have chosen instead. In this case Mustafa chooses to set up his business taking time out of his school education to try to earn some money.
One advantage Mustafa has is not only he is innovative but also he is self-sufficient, owning a set of bathroom scales. The downside is the amount and fitness of his resources. Resources, being another ingredient of an Enterprise. This is a major risk that Mustafa must decide on taking. Does Mustafa have the resources? If the bathroom scales breakdown after the first day, will he be able to afford another set of scales? And what if his service is irregular? Mustafa might have homework to do, to further his education, or his family might be ill and need looking after or even if he is physically unable to do the job himself due to illness.
If Mustafa does succeed his business, there is a choice of completing his original goal and returning to his education or he could sacrifice the opportunity of going to school and start to expand his business. Since Mustafa’s business is unique it is also original. Therefore there will not be much competition so all passers by could be good customers producing potential profit. On the other hand there is a possibility that passers by may have their own set of scales. Then would they pay to have themselves weighed in the streets?
If Mustafa’s business does fail then he could have had an education at school and later on in life could have started a much more efficient business. Mustafa’s business not really a long-term business and if he desired to expand it would be difficult to do so, if his business is not successful in the first place.
Profit is obviously important to Mustafa’s business and without it survival time for him is short. He needs to make enough profit for his family or for himself and then he needs more profit to expand his business. As you can see there are a lot of questions involved when it comes to Choice and Opportunity. Risk plays a large role which can decide the success or the failure of Mustafa’ Business.