Business Research and Development

Rajiesh Bradford

Kelleen Bremmer

Sashalee Stephensons

Business Concepts and Principles

Sam Sharpe Teachers’ College

Mrs. Jones-Williams

October 11, 2024

 Instructions: Students will conduct research on business unit in groups and develop a 10

minute PowerPoint presentation. Each group should consist of 4 members.

A. You are the Chairman for the entrepreneurship club at your school. You are given a

mandate to identify a local business enterprise and developing a product or service to enhance

that business. (20 marks)

In addition, complete the following theoretical task:

B. List the two (2) reasons why persons become:

i. Sole Traders

ii. Established Partnership

iii. Established Private Limited Companies

iv. Established Public Limited Companies

v. Become members of a cooperative (10 marks)

C. Based on the Business enterprise selected, explain TWO ways in which you could obtain

financing for your enterprise. (5 marks)

D. Discuss five (5) factors that would determine where you set up your business.

(5 marks)

E. Discuss two (2) factors that would determine what product or service you undertake.

(5 marks)

F. Explain the importance of the documents you will need to legally set up your business,

also the process you will have to comply with. (10 marks)

(Total 55 marks)

Criteria for assessing the product or service

1. Applicability of product or document to the enterprise. (5 marks)

2. Relevant features. (5 marks)

3. Creativity (5 marks)

4. Aesthetic (5 marks)
You are the Chairman for the entrepreneurship club at your school. You are given a

mandate to identify a local business enterprise and developing a product or service to

enhance that business.

This group intends to assist an agro-supply enterprise. This is so because farming is the

backbone of any community. Farming is vital not only for food production but also for the

sustainability of our ecosystems and economies. It serves as the foundation of our food supply,

providing essential nutrients and diverse crops that nourish populations around the globe.

Beyond its role in agriculture, farming supports rural communities, creating jobs and fostering

local economies. Moreover, sustainable farming practices contribute to environmental health by

promoting biodiversity, conserving water, and improving soil quality.

The product we hope to assist the business with is the implementation of vertical

farming. Vertical farming is an innovative agricultural technique that involves growing crops in

vertically stacked layers, often within controlled environments such as warehouses or

greenhouses. This method maximizes space utilization, making it ideal for urban settings where

land is scarce. By utilizing advanced growing techniques such as hydroponics, aeroponics, and

aquaponics; vertical farms can produce a wide variety of crops while minimizing the ecological

footprint associated with traditional farming practices (Despommier, 2010).

One of the significant benefits of vertical farming is its potential for resource

conservation. Unlike conventional agriculture, which often relies heavily on water, pesticides,

and fertilizers, vertical farming systems can optimize these inputs through closed-loop systems

and precision farming techniques. This not only reduces water consumption but also mitigates

environmental degradation caused by chemical runoff (Kozai, 2013). Additionally, by situating

 farms closer to urban consumers, vertical farming can decrease transportation emissions and

enhance food freshness (Al-Chalabi, 2015).

However, vertical farming is not without its challenges, including high energy

requirements and substantial initial investments. Despite these hurdles, advancements in

renewable energy sources and smart agricultural technologies are making vertical farming

increasingly viable. As global urban populations rise and the impacts of climate change threaten

traditional agricultural methods, vertical farming offers a sustainable alternative to ensure food

security and resilience in urban environments (Banerjee & Adenaeuer, 2014; Thomaier et al.,

2016).

Vertical farming can significantly enhance a business in several ways:

1. Increased Efficiency and Yield: Vertical farms use space more effectively by stacking layers of

crops, allowing for higher production in a smaller footprint. This efficiency can lead to increased

yields per square foot compared to traditional farming, which can translate into higher revenue

potential for businesses involved in food production or sales.

2. Sustainability and Brand Image: By adopting vertical farming practices, businesses can

position themselves as environmentally friendly and sustainable. This approach can attract

consumers who prioritize eco-conscious products. Using less water and fewer pesticides, vertical

farms contribute to reduced environmental impact, enhancing a company’s brand reputation and

potentially leading to increased customer loyalty.

3. Supply Chain Optimization: Vertical farming allows businesses to grow food closer to urban

markets, reducing transportation costs and time. This local approach can ensure fresher produce,

enhance food security, and mitigate supply chain disruptions caused by weather events or other
 external factors. Additionally, businesses can benefit from shorter lead times and reduced carbon

footprints, further appealing to environmentally conscious consumers.

4. Year-Round Production: With controlled environments, vertical farms can operate year-round,

independent of seasonal fluctuations. This continuous production capability allows businesses to

offer consistent supply and pricing, which can stabilize revenue streams and reduce the risks

associated with seasonal farming.

Based on the Business enterprise selected, explain TWO ways in which you could obtain

financing for your enterprise.

As you may have gathered, vertical farming requires a significant upfront investment in

technology, equipment and infrastructure. Once solved, these questions will help you determine

the size and type of vertical farm you need, as well as the equipment and supplies needed.

1. Grants - One prominent option is to explore government grants and programs

specifically designed to support agriculture and sustainability. The Jamaican government,

particularly through the Ministry of Agriculture and Fisheries, often provides financial

assistance for innovative agricultural practices aimed at enhancing food security and

sustainability. Entrepreneurs can apply for grants that target urban farming initiatives or

sustainable agriculture projects, which can significantly reduce startup costs and help in

establishing a solid foundation for the business. In addition, some local and national

governments also offer grants and incentive programs to encourage the adoption of

sustainable agricultural practices, including vertical farming. It is important to research

and be aware of the funding options available in your area to determine which grant

programs may be applicable for your vertical farming project.

2. Microfinance institutions also present a valuable avenue for securing financing. In

Jamaica, several microfinance organizations focus on providing loans to small businesses

and agricultural enterprises. These institutions often offer more flexible terms and lower

interest rates compared to traditional banks, making them accessible for entrepreneurs

who may not qualify for larger loans. By tapping into microfinance resources, vertical
farming ventures can obtain the capital needed for equipment, initial setup, and

operational costs, enabling them to launch their projects more effectively.

Explain the importance of the documents you will need to legally set up your business, also

the process you will have to comply with.

Like any agricultural activity, vertical farming is subject to regulations and permits. These

rules are in place to ensure that the practice is safe and sustainable, and that it does not pose a

threat to public health or the environment. Here are some of the regulations and permits that may

be required in case you want to start a vertical farming company:

1. Zoning and land use regulations: Before starting a vertical farm, it is important to

check local zoning and land use regulations. In some areas, vertical farming may be

classified as a commercial or industrial activity, which may have specific zoning

requirements. It may also be necessary to obtain a building permit to construct a vertical

farming facility.

2. Environmental regulations: Vertical farming facilities may be subject to environmental

regulations, such as air and water quality standards. It is important to ensure that the

facility does not emit pollutants that could harm human health or the environment.

3. Food safety regulations: Vertical farms that produce food for human consumption are

subject to food safety regulations. These regulations are designed to ensure that the food

is safe for consumers to eat and free from harmful contaminants.

4. Energy regulations: Vertical farming facilities may consume a significant amount of

energy to power lighting, heating, and cooling systems. It is important to comply with

energy regulations and to explore ways to reduce energy consumption, such as using

renewable energy sources.

5. Occupational safety regulations: Vertical farming facilities may pose risks to workers,

such as exposure to chemicals or falls from heights. It is important to comply with

occupational safety regulations to ensure that workers are safe on the job.

6. Registering business name: To operate a business, you will need to register the name of

the business. When you have your name registered, it gives you the legal right to trade

under that name. With registering your business in Jamaica, you will be able to do your

taxes, open business accounts, get financial assistance from banks, etc. To register your

business in Jamaica you must visit the Companies Office of Jamaica.

7. Registering with RADA: To operate a legal farm in Jamaica you will need to register

with Rural Agricultural Development Agency (RADA). Farmers are required to register

their farms with RADA to access fiscal incentives and other benefits offered by the

Government of Jamaica (GOJ).

8. Operating Agreement: This document is essential for LLCs, outlining the management

structure, operational guidelines, and member responsibilities. It clarifies how decisions

are made and profits are distributed, reducing potential conflicts among owners.

9. Partnership Agreement: If your vertical farming business involves multiple partners, a

partnership agreement details each partner's contributions, roles, profit-sharing, and exit

strategies. This ensures clarity and helps prevent disputes.

10. Lease Agreements: If you’re leasing land or facilities for your vertical farm, a lease

agreement outlines the terms, including duration, rent, maintenance responsibilities, and

what happens at the end of the lease. This protects both parties and clarifies expectations.
11. Employment Contracts: If you plan to hire employees, having contracts that detail roles,

responsibilities, and compensation is crucial. This protects your business and ensures

employees understand their rights and obligations.

12. Insurance Policies: Insurance is vital to protect against risks like crop loss, equipment

damage, and liability claims. Policies may include general liability, property insurance,

and workers' compensation, safeguarding your investment and ensuring compliance with

labor laws.

13. Intellectual Property Documents: If your vertical farming methods or products involve

innovative technologies or branding, protecting your intellectual property through patents

or trademarks is essential. This helps safeguard your competitive advantage.

 Discuss five (5) factors that would determine where you set up your business.

The location of your vertical farm is crucial to its success. Ideally, you want a space that is

well-ventilated, with access to natural light and utilities like electricity and water. Some options

are based on an indoor vertical farm style, as vacant warehouses o disused buildings, without

ruling out other options as even rooftops. Keep in mind that the location you choose will have an

impact on the type of crops you can grow and the equipment you will need.

1. Market Demand: Analyzing the local market for fresh produce is crucial. Locations with high

population density and a preference for fresh, locally-sourced food can provide a strong customer

base. Researching existing competition and the specific crops in demand can also guide your

decision.

2. Accessibility to Resources: Proximity to essential resources like water, energy, and

transportation networks is vital. Vertical farming requires significant amounts of water and

energy, so being near reliable suppliers can reduce costs. Additionally, good transportation links

can facilitate efficient distribution of your products.

3. Proximity to Suppliers and Distributors: Being close to suppliers for seeds, nutrients, and

equipment can lower transportation costs and improve supply chain efficiency. Additionally,

proximity to distribution channels, such as grocery stores and restaurants, can facilitate faster

delivery and fresher products.

4. Cost of Real Estate: The cost of acquiring or leasing a suitable facility can greatly impact your

business’s financial viability. Urban areas may have higher real estate prices, but they might also

offer better access to markets. Balancing location costs with potential revenue is key.
5. Climate and Environmental Factors: Although vertical farms can mitigate some climate

challenges, considering the local climate is still important. Factors like temperature, humidity,

and light availability can affect operational efficiency and energy costs. Areas with favorable

conditions for growing certain crops may reduce overhead costs.

 Discuss two (2) factors that would determine what product or service you undertake.

When it comes to choosing crops for vertical farming, there are a few key factors to

consider. First and foremost, you need to select plants that thrive in an indoor environment and

are well-suited to growing in a soilless medium such as hydroponics or aeroponics.

1. Growing Conditions and Technology: The type of vertical farming technology you choose—

hydroponics, aeroponics, or aquaponics—will impact which crops can be successfully grown.

Each system has its strengths and weaknesses, so evaluating the optimal conditions for different

crops (like light, nutrient requirements, and growth cycles) is essential for maximizing yield and

efficiency.

2. Cost of Production and Resource Availability: Analyzing the cost of production for various

crops, including initial setup costs, ongoing operational expenses (like energy and water), and

labor requirements, will help determine feasibility. Certain crops may have higher profit margins

but also require more intensive resource use. Understanding your budget and resource

availability will help you select products that are financially sustainable.
 List the two (2) reasons why persons become:

Sole Traders

a. Direct Relationship with Customers - Sole traders often benefit from the ability to build strong,

personal relationships with their customers. This direct interaction can lead to enhanced

customer loyalty and a better understanding of client needs. By fostering these connections, sole

traders can tailor their offerings to meet specific demands, which can be a significant competitive

advantage.

b. Full Control - Sole traders enjoy complete autonomy over their business decisions, which is a

significant draw for many entrepreneurs. This level of control enables them to make quick

decisions regarding operations, pricing, and strategy without needing to consult partners or board

members. This flexibility can be crucial, especially in fast-paced industries where responsiveness

is key.

Established Partnership

a. Increased Capital Investment - Forming a partnership allows for increased capital investment,

which is crucial for business growth. With multiple partners contributing financially, businesses

can access more significant funds for expansion, marketing, and other operational needs. This

enhanced capital base can lead to increased purchasing power and the ability to take on larger

projects or contracts.

b. Shared Resources and Expertise - One of the key reasons individuals choose to form an

established partnership is the ability to pool resources and expertise. By collaborating, partners

can combine their financial resources, skills, and knowledge, allowing for greater innovation and

efficiency in business operations. Partnerships enable individuals to leverage their unique

 strengths, resulting in a more robust business model that can adapt to challenges more effectively

than a sole proprietorship.

Established Private Limited Companies

a. Limited Liability Protection - One of the primary reasons individuals choose to form an

established private limited company (Ltd) is the limited liability protection it offers. This means

that the personal assets of the shareholders are protected from the company’s debts and

liabilities. In the event of financial difficulties, creditors can only pursue the company’s assets,

not the personal possessions of its owners. This legal distinction is a significant advantage,

providing peace of mind to business owners and encouraging entrepreneurial risk-taking.

b. Enhanced Credibility and Trust - Operating as a private limited company can enhance a

business's credibility and professional image. Customers, suppliers, and investors often view

limited companies as more stable and trustworthy compared to sole traders or partnerships. This

perception can be particularly beneficial when seeking financing or entering into contracts. The

formal structure of a private limited company, including compliance with regulatory

requirements, contributes to its legitimacy and can foster greater trust among stakeholders.

Established Public Limited Companies

a. Enhanced Corporate Governance - Public limited companies are subject to stringent regulatory

requirements and corporate governance standards, which can improve overall management

practices. These regulations often necessitate greater transparency, accountability, and oversight,

which can help prevent mismanagement and promote ethical business practices. This enhanced

governance framework can strengthen stakeholder confidence and improve decision-making

processes, ultimately leading to better performance and sustainability.

b. Access to Capital Markets - One of the primary reasons individuals choose to establish a public

limited company (PLC) is the ability to raise significant capital by issuing shares to the public.

This access to capital markets enables companies to fund large projects, expand operations, and

invest in research and development. By selling shares on a stock exchange, PLCs can attract a

broad range of investors, including institutional investors and retail shareholders. This ability to

tap into public capital markets is a crucial advantage that can fuel long-term growth and

expansion.

Become members of a cooperative

a. Shared Goals and Values - One of the main reasons individuals choose to become members of a

cooperative is the alignment with shared goals and values. Cooperatives often focus on

community welfare, sustainability, and mutual support, attracting members who are passionate

about these principles. By joining a cooperative, individuals can contribute to a collective

mission that prioritizes social and economic benefits over profit. This sense of belonging to a

group with common objectives fosters a strong commitment among members, creating a

supportive environment where everyone works towards the same ends.

b. Access to Resources and Services - Cooperatives often provide members with access to

resources and services that would be challenging or costly to obtain independently. For instance,

agricultural cooperatives might offer farmers shared equipment, marketing support, and bulk

purchasing options, while consumer cooperatives can provide better deals on everyday goods. By

pooling resources, cooperatives enhance their members' capabilities and competitiveness in the

market. This collective access enables individuals to benefit from economies of scale, ultimately

improving their overall quality of life.

References

Despommier, D. (2010). The Vertical Farm: Feeding the World in the 21st Century. St. Martin's
Press.

Kozai, T. (2013). The role of the vertical farm in sustainable urban agriculture. Journal of
Environmental Management, 113, 1-10.

Al-Chalabi, M. (2015). Vertical farming: A new technology for urban agriculture. Renewable
Agriculture and Food Systems, 30(1), 1-2.

Banerjee, C., & Adenaeuer, L. (2014). Opportunities and challenges for vertical farming in the
urban environment. Environmental Research Letters, 9(3), 034003.

Thomaier, S., et al. (2016). Farming in and on buildings: A systematic review of the ecological,
economic, and social impacts of urban agriculture. Sustainability, 8(2), 194.