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Illustrate your understanding of the term 'Indigenous Firm' - Leaving Cert Business - Question 8 - 2003
Question 8
Illustrate your understanding of the term 'Indigenous Firm'
Worked Solution & Example Answer:Illustrate your understanding of the term 'Indigenous Firm' - Leaving Cert Business - Question 8 - 2003
Step 1
Definition of Indigenous Firm
Answer
An Indigenous Firm refers to a business enterprise that has been established or originated in a specific locality, such as Ireland. This term implies that the enterprise is not a foreign entity; rather, it is native to and based within that particular region.
Step 2
Key Characteristics
Answer
The primary characteristics of an Indigenous Firm include:
- Local Origin: The business is set up in the locality and is not imported from another region.
- Domestic Operations: The firm operates within the domestic market, serving local consumers.
- Local Ownership: The ownership is typically held by individuals from the local community who have a vested interest in the business's survival and growth.
Step 3
Importance of Indigenous Firms
Answer
Indigenous Firms play a crucial role in the local economy by providing employment opportunities, supporting local suppliers, and enhancing community prosperity. Their success contributes to the economic resilience of the area, fostering sustainable development.