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(c) Human – (d) Intangible
(e) Financial

7. Physical Resources: Meaning, examples and selection process

The following factors should be given due consideration while deciding about the physical resources
required.
a. Access to market to procure raw materials as well as to sell finished goods.
b. Affordability of manpower.
c. Availability of other resources
d. Availability of water fuel, gas and other required utilities.
e. Capital Cost.
f. Communication and transportation expenses.
g. Cost of production.
h. Regulations related to the pollution..

8. Material Resources: Meaning, examples and important decisions regarding the arrangement of
material resources. Points to be considered by an entrepreneur for financial resourcing:
(a) How much finance is needed?
(b) Terms for which finance is required-long term, short-term and medium term
(c) Sources of generating finance-Owners fund’s and borrowed fund’s
(d) Intangible resources

9.Human Resources: An enterprise can achieve efficient utilization of human resources through

 Managerial Staff: The managerial staff forms the core of the enterprise. They formulate the
goals, objects and policies to be implemented in the enterprise and get the work done through
the workers.
 Non-managerial staff: They are the workers who help in converting the raw materials into the
finished goods. Depending on the type of work their quality and quantity varies.
 Trained Technical staff: These are technical experts who help in
a. Selection of machinery
b. Installation of machinery
c. Supervision of work
d. Operations
 Administrative staff: They provide support services to all the above namely the managerial,
non-managerial and technical staff. They’re not directly involved in production. They role is to
help and maintain the business operations..
 Professional staff: They are professionals like
e. Auditors
f. Bankers
g. Chartered Accountants
h. Lawyers