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Monday, December 5, 2022

Entrepreneurial mindset – Innovation – Production

By Abosede Ajala

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Production is the art of making or manufacturing from components or raw materials to a finished product which can be used either as goods or services.  In other words, production takes in input process it to create an output fits for consumption, a good product that has value to an end users or customers and which greatly satisfies human wants and needs.   In business, production is any human activity that involves the making of physical goods and provisions of services for the satisfaction of human wants which in turn boost the economy.

Forms of productions can be grouped into three categories they are; Primary Production, this type of production involves tapping. digging, or harnessing natural resources from land, sea etc., it also includes mining, oil drilling and quarrying.  Another type/form is Secondary Production at this stage raw materials are converted into semi-finished or finished products and this class of production includes furniture making construction of roads paper milling, food processing chemicals, textiles, hair weavons/attachments, shoes etc. While the third stage of production is called tertiary production (commercial and professional services).

With the commercial and professional services, goods are able to reach the consumers, indeed, production cannot be completed until what is produced reaches the final consumers, it also includes distribution, storage and transportation.

Innovation in production proves a great deal for an entrepreneur who actually understand the combination of the duo.  In the olden days, there was no sachet nor bottle pure water, all we can get to buy and consumed was water tied inside a white like nylon called ice water.  Hence with innovation in production of that particular goods it eventually transformed into a global/universal accepted upgrading packages.                    

Entrepreneurship education has proven that understanding or having knowledge of a skill and more we impressively reduced substandard products in our community/society and the nation at large and as a result boost our economy.    Basically, production process can be categories into two major groups, the direct and indirect production processes.

Considering the product to be produced, there are five factors that without which production will be impossible: they are; Land, Labour, Capital, Machines/Natural Resources and the Entrepreneur, who is the coordinator of all, both human and materials resources in the production of goods and services.  Remember the entrepreneur is the initiator, innovator, risk bearer and decision maker, hence these factors distinguished entrepreneurs from ordinary routine managers.

Take advantage of all the serial write-ups, become an entrepreneur by joining our online special edition on bar and detergent soap making production with an empowerment.

Learn a trade today and be empowered for life’.

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