Leather Goods Manufacturing & Repairs 2, May/June 2014  
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General Comments

Question 6


Explain five factors to be considered when establishing a small scale leather goods enterprise.

A good number of students attempted this question and scored relatively high marks. Majority of the candidates who attempted this question were able to list the factors but were unable to expatiate their point to obtain maximum marks .
These candidates were expected to state thus to score maximum marks in this question.

  1. Availability of capital:  Start-up capital and working capital should be made available.
  2. Room or Space:  For the workshop should be available.
  3. Nearness to source of raw material: The factory must be sited in an area where hides and skins and other raw materials can be easily sourced.
  4. Nearness to market:  The firm should be sited in an area where there is a ready market for leather products.
  5. Availability of labour:  The factory should be sited in an area where there is a large pool of skilled labour in leather craft and manufacturing.
  6. Adequate transport network:  There should be adequate transport network to move raw materials and finished products to the factory and markets respectively.
  7. Nearness to source of power:  The factory should be sited in an area where there is a steady source of power.
  8. Selecting a business name: The name for the enterprise should be selected appropriately.






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