Date Posted: 11/5/2012 7:22:03 AM
Posted By: Saucer Membership Level: Gold Total Points: 4885
You will find them in the streets of every town in the country. I am talking about itinerant traders. The itinerant traders include: hawkers, peddlers and mobile vans who move around showcasing their wares. They deal in clothes, food stuffs, household goods and some hardware items. These traders face many challenges but there are also benefits associated with them. - Their prices are not fixed. There is room for haggling and negotiating. This may result to more sales for the trader and cheap prices for the buyer. - These traders require small capital to start. - There's no need for big spending because expenses such as a physical location are not an issue. - Anybody can start this business. All they need is to buy goods which they will later sell. The traders incur low operating costs. - Recurring expenses such as rent and salaries to employees are not an issue here. All they need is to restock on their goods which they will re-sell. - They deal in cash only. They do not sell goods on credit. Therefore the issue of bad debts doesn't arise. - There's the issue about the ease of starting the business. They don't require many formalities. All they need is a trading license to operate. - The traders move around almost all of the time. They therefore are able to reach customers easily. This is convenient to many buyers. This is a feature which retailers with shops do not have. - These traders enjoy flexibility in decision making. They can change their wares to correspond with customers needs. A good example is when it rains suddenly and out of nowhere you see hawkers selling umbrellas. - These traders have close contact with the buyers. This is advantageous to them and their business. They can respond effectively to customers' demands. - They also create loyalty of the buyer by being in close contact with them. These businesses create employment for jobless people in the country.So we should not look down on these traders because they are contributing to improving the economy by paying taxes and providing buyers with goods.
Next: Business ethics are a necessity in the business worldPrevious: Tax Planning for SMES in Kenya
Get premium membership