Fundamentals of Business

It is often thought that, the only constraint and a source...

It is often thought that, the only constraint and a source of business failures is lack of capital, that is not far from the truth but capital is only one part of the factors of production. The examples from the extract below indicate how other factors of production can have an impact on an enterprise depending on what is doing.

Examples:

Extract from bbc·co·uk
By Russell Hayes in Cardiff. Tourism recruitment crisis
With the start of the tourist season only a few weeks away hotels and restaurants are warning of a staffing crisis which has left 100,000 jobs unfilled. The problem is being blamed on record low unemployment and the industry's reputation for poor pay. It's forcing employers to step-up the campaign to improve their image. In Cardiff the effort to increase the number of people working in the tourist industry involves school children being given a taste of life behind the scenes of one of the city's conference venues. It is among hundreds of events organised around the UK as part of the industry's Springboard programme which tries to persuade potential employees that the industry offers more than long hours and low pay.

Extract from Inside Out - East Midlands
Curry chefs crisis going for a curry is a British tradition, but is a shortage of curry chefs is threatening to jeopardise our favourite dining experience. Restaurants in the East Midlands are struggling to recruit staff, and some are even going as far as India to find chefs. So what does the future hold for our curry houses? Everyone enjoys a night out at their local Indian restaurant, but could a trip for a curry become a thing of the past? Indian and Bangladeshi food is a victim of its own success, and it seems that we just can't keep up with demand for a good curry. Inside Out investigates what the curry crisis means for the East Midlands. The amount of Indian food eaten in Britain is phenomenal. There are around 10,000 restaurants serving more than two million meals every week. The industry is worth more than £2.5 billion a year, but after many years of growth, Britain's Indian restaurants are in crisis.

Extract from Roadtansport·com
Manpower warns of serious driver shortage in 5 years The head of Manpower Driving warns that the driver shortage could bite hard in five years time if new entrants are not attracted into the industry. Simon Edwards commented as Manpower's new survey showed that transport bosses remain confident about recruitment with 15% of employers intending to take on more staff during April to June. Just 2% say they will make cutbacks. Edwards says: "The shortage is not as dramatic as that initially envisaged when there were predictions of 80,000 drivers needed. That said, I think we're going to feel it in five years time based on the average age of drivers, especially if new people do not come into the sector". Edwards says companies should pay more attention to salaries, benefits, training and flexible working opportunities to retain good staff.

NOTE: It is paramount not to overlook other factors of production.