Financing a Small Business Research Paper Example | Topics and Well Written Essays - 1250 words

Financing a Small Business - Research Paper Example Luckily, there are still many ways which a smart and proactive person can use to make his living. Something which is better than his previous job infact. This is to start his own business. One might ask why anyone would want to start his own business and go through such a huge risk of investing so much and finding out in the end that it was all a bad idea and loses all his money. Well the answer is already given above. But apart from not having any other choice, it is wrong by many people to consider a business as a "risky investment" because a business is as secure as you want it to be. If you start out with a stupid idea which only you believe is going to sell, well then you will lose your money. On the other hand, if you value your investment a lot and do not want to take big risks, you can start something simple like a general or medical store. This type of business will give you lesser profit but it will be stable and will involve routine supply chain techniques which will there fore lowering the risk to a minimum. Now comes the most crucial part, one which actually makes a person decide on his destiny. It's how to finance his business. The first thing a person needs to answer is how much investment is he going to need. If his business plan is well defined and thoroughly covers the default five year plan technique, he will know exactly how much he will need in order to get it started. He will also know in how much time he will be able to reach break-even for his investment therefore answering his second query of repayment of his installments. There are several ways a person can finance his business, for the purpose of simplicity, we will discuss three of the most common ways which are used by small businessmen and even by big multinational giants (James E. Burk, Richard P. Lehman, 2006). Personal Credit This technique is primarily designed for small businessmen deciding on opening a low risk and stable earning platform. This is because as the name suggests, the businessman will borrow money from his personal contacts either by formal or informal agreements. These personal contacts are usually family members who come in the businessman's trust circle like his parents and siblings. This is the safest way of acquiring money for investment because there is a lot of flexibility involved in the process. Also, the business man will be more careful of investing it wisely as his share is the highest in the whole investment and he cannot gamble with it too much. Upon interview of selected people on whether they would lend money to a close relative, the answers received were highly unexpected. 80% of people interviewed said they were not comfortable in lending their hard earned money as they were not sure if they would be able to get it back once they lend it. On the other hand, people also said that they would not like to ask their family members for help as they do not want to parade about the fact that they are starting a business as they might become prey to extreme jealousy. Bank Loan This technique is the most common used in the business world today. Even banks offer special packages to customers seeking money for investing in their own small business which are good because they have lower markups and they are granted more easily thanks to governmental

Growth and Future of Private Equity Essay Example for Free

Growth and Future of Private Equity Essay 1. Overview of Private Equity Private equity is an important source of funds for start-up firms, and firms in financial distress. This type of funding has gained great significance in the past two decades and as such is a relatively new concept. It is one of the fastest growing sectors in the world of corporate finance with extensive applications across all industry segments. Businesses across the globe depend on capital investment for their growth and survival. The capital investment is generally raised through public issues, financial institutions, loans from banking institutions, mutual funds, and lease financing options available in the market. Investment in start-up business venture has high risks associated where business returns are uncertain. Private equity broadly refers to investment in companies that are privately owned. This form of investment generally uses funds raised from pension funds, financial institutions and wealthy individuals for investing in high growth businesses or for acquiring businesses with higher rates of return. â€Å"The private equity market involves large block transactions, which are privately negotiated, generally involving unlisted companies† (Business Standard publication). This type of investment is not listed in the stock exchange and has become popular financing instrument for new business ventures. This kind of investment broadly covers management buy-outs and buy-ins, development capital and venture capital. Management buy-ins and buy-outs In this case private equity funds are used to purchase the company or controlling stake in it using debt and equity capital. Development capital – This form of investment generally refers to money borrowed for development or growth purposes. Capital borrowed under this category can be used for any organizational purpose ranging from financing new lines of production to ensuring smooth completion of on going projects. Venture capital – This refers to investment in new business ventures that has promising growth potential and higher financial returns. Private equity firms establish funds that raise capital from investors who form limited partners. The private equity firms, referred to as the general partners invest this capital along with funds collected from banking and other commercial institutions to buy businesses that have significant growth and increased profitability potential. The general partners have certain guidelines for selecting a company or business for acquisition. A business that combines the ability to generate cash, and significant market value along with a strong managerial team to steer growth in the desired direction is an ideal investment option. The general partners objective is to infuse well-planned growth strategies backed by a strong team to improve the company’s performance and generate higher returns on investment. This is accomplished through strategic advice, market analysis, restructuring of existing operational framework, change management strategies and financing. They make money from the cash flow of the acquired business and then sell them for profitable gains. The relationship is generally of a short-term nature ranging from three to ten years of ownership after which the proceeds are used to acquire another business or finance another venture. Once the company has grown in terms of valuation and profitability it is sold to a larger company or floated on a stock market. The private equity investment has its own cycle that is extended through long periods of activity to support sustained business growth and gains. Private equity firms raise funds every three to five years to fund specific activities within the acquired business. The best time for acquiring a business is when the markets and prices are low. Similarly the ideal time for exiting or selling stakes in the acquired business is when the prices are high to maximize gains from proceeds. Investments within a company are usually held for several years to give time to the business to mature and reach a stage of high profits and market value. The private equity market constitutes of the organized market and the informal market. The organized private equity market includes professionally managed equity investments in unregistered securities of private and public companies. Specialized firms and institutional investors provide professional management services that build on the company’s assets and managerial talent. The private equity managers have large ownership stakes in the business and get actively involved in the overall management of the company. These businesses are profit-building machines for them that are nourished and nurtured to provide higher returns on investment. Once the businesses are established and reap profitable returns they are either listed for public offers in the market or sold to larger companies for higher gains. The organized private equity market has four major players comprising of private equity issuers, intermediaries, investors, and the agents or advisors. The issuers comprises of firms that cannot raise financing in the debt market or the public equity market. These firms are relatively younger in comparison to other firms in the market and they seek to raise capital for new product development or technology to show very high growth rates in the future. These firms are still in the research and development stage. In some cases firms with years of operation in the market venture out to new technologies or lines of service also come into this bracket for financing needs. This segment has assumed great importance in the private equity market with rising statistics and more private equity investors taking active interest in their potential growth capacity and highly profitable ventures. High yields and increasing returns are one of the most attractive features of this market segment. Intermediaries comprise of nearly 80 percent of private equity investments. This market sector mostly constitutes of limited partnership firms managed by independent partnership organizations or by affiliates of financial institutions. This segment also includes small business investment companies, or publicly traded investment companies that account for marginal share of the private equity market. Investors comprise of the public and corporate pension funds forming the largest investor groups accounting for 40 percent of global capital out standings. Public pension funds are the fastest growing group of investors and have overtaken private pension funds in terms of amount of private equity holdings. Endowments, foundations, bank holding companies, and high net worth individuals accounting for almost 10 percent each of the total private equity funds follow the pension funds. The other investors include insurance companies, investment banks, financial investors, and non-banking financial institutions. Agents and advisors form a significant section of the private equity market. They are mainly referred to as the information producers, who place private equity, raise funds for private equity partnerships, and evaluate the feasibility of the partnerships for the potential investors. Their sole purpose is to reduce the cost of information gathering that is required for private equity investment. They facilitate the search of companies in need of private equity funding, and institutional investors who are willing to enter into partnership agreement. They advise on the structure, timing, and pricing of private equity issues and assist in the process of negotiation between the two parties. Their role assumes greater significance in the context of financial investors who are unfamiliar with the local market or economy.   In the informal private equity market unregistered securities are sold to institutional investors, where the number of investors is larger and minimum investments smaller than the organized private equity market. Investors in this segment are mostly insiders in the company who have stake in the company. The companies that are financed through private equity funds benefit in terms of better management and increased efficiency since the investors take active interest in monitoring and improvising changes for better financial performance. The private equity firms have access to specialized management expertise for acquired businesses. Moreover, the private equity managers conduct extensive market research and analyze the feasibility of business ventures from every angle to draw risk assessment and opportunities before deciding on investment. This equips them with indepth market knowledge to make well-planned strategic moves that can reap higher productivity and gains for the private equity investors. The concept of private equity dates back to the year 1946 with the establishment of the American Research and Development Corporation with the sole objective of providing financing to new and start up businesses in the private sector. It was setup as an institution that provided finance as well as management expertise to ailing organizations. Since then the private equity market has witnessed a booming presence across the globe especially in the last 15 years. The sector has generated profits of more than $430 billion for their investors between the years 1991 and 2006. The recent corporate trends in the private equity market have shifted towards consolidations and buyouts. This is mainly attributed to seeking good investments by private equity firms and the benefits of cost advantage and minimizing risks across various channels of distribution. The private equity firms look for companies that are market leaders in terms of product and service offering having a strong management team and high barriers to market entry, attractive growth opportunities and profit margins. The growth of private equity funds is evident with increasing investment in large number of private companies as well as taking public companies private. Private equity has played an important role in economic development contributing to enhanced productivity, competitiveness, and improved performance of businesses in the private sector. The private equity market in India has also grown from US$20 million in 1996 to US$1.75 billion in 2004. The country is emerging as the major market for private equity investments. 2. Growth of Indian Economy The Indian subcontinent having population of over 1.1 billion, diverse cultures, religion, and languages has one of the largest and successfully running democracies in the world. Post independence it has been successful in eroding poverty and illiteracy to a great extent. The low per capita income combined with fewer manufacturing industries and a service sector at the base level had labeled the country as poor and underdeveloped. The economy was primarily agrarian and lack of facilities and infrastructure posed great difficulties in its progress. Initially the government controlled everything from banks to major industries. Facing such extreme situation the country has emerged as one of the fastest growing economies in the world with an annual growth rate of 8% in the last three years. It is also seen as the destination for information technology and global process outsourcing. Increased foreign investments and growth in real per capita income has transformed the economy largely over the last decade. Now India is a rapidly growing economy experiencing a fast growth rate in the past few years. The path of economic development and progress that India has taken is spectacular and has emerged the new market for the world with immense growth potential. Various economists have predicted that India will become a major economic power in the years to come. This is largely attributed to the rising Gross Domestic Product (GDP) of the countries and the major economic transformation that has taken place in the countries recently. The Indian economy had very poor growth rate post independence with a predominantly agrarian economy and underdeveloped manufacturing and service sectors. Rise in privatization of various sectors paved the way for economic progress in the subsequent years. The government sought to implement policies to ensure overall development of the manufacturing and service sectors. These measures brought about major changes in the industrial landscape and economic growth rate accelerated. The annual economic growth rate was 5.5% in the 1980s. Industrial growth rate was recorded at 6.6% annually and 3.6% in the agricultural sector. The 1990s witnessed a rapid change in the economic growth and development with the liberalization of the economy. A GDP growth of 9% was observed in the 2005-06 and 9.5% during 2006-07. With rising GDP and increased investment the economy is poised for enhanced growth rate. The economy was largely boosted by growth in tourism, financial sectors, and manufacturing industries. It is now the fourth largest economy in terms of purchasing power parity. High growth rates in the industrial and service sector combined with a slump in the major economies across the world in the last few years have provided the Indian economy a boost. The mid 1990s saw a rise in the Information Technology sector in the country. The rapid penetration of computers and the Internet in nooks and corners of the country attributed largely to this rise. Moreover, the abundance of skilled professionals armed with latest technical know-how and the zeal to prove their abilities in this direction provided the necessary impetus. India soon became the hub of IT activities across the globe with surging demand for professionals from the country. Government reforms and policies provided the necessary infrastructure for the growth of this sector. This was a major achievement for the country. The growth in IT sector led to the rise in other associated service and industrial sectors contributing to overall development of the economy. Currently the service sector dominated by IT, financial services, and construction contributes more than 50% of the GDP. Business Process Outsourcing (BPO) is yet another arena contributing to overall economic development. This segment has attracted huge foreign investments into the country. A large portion of the Indian population comprises of young people. The educated young people have benefited the service sector with the availability of skilled labor and this contributed largely to the development of the country. Despite the slump in global economy that has hit hard some of the most developed economies like United States, Indian economy has remained immune to the effects of this recession. This is primarily due to the strong economic reforms adopted by the country. The low dependence of the economy on export trade is one of the reasons. The Indian economy is more driven by domestic demand than foreign investment. Moreover, the banking system has minimal exposure to foreign currency assets. This has rendered the economy relatively immune to the effects of the global slump. While other economies across the world are facing economic turmoil, India remains on steady footing. Being one of the fastest growing economies in the world India is attracting huge amounts of foreign investment. The total amount of foreign investment reached US$ 8.5 billion in the year 2006. Real GDP Growth Rate during 2003 to 2007   Ã‚   2003   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2004   Ã‚   2005    2006   Ã‚   2007 4.30% 8.30% 6.20% 8.40% 9.20% The chart shows the real GDP growth rate in percentage during the period 2003 to 2007. (Data collected from economywatch.com) The current GDP of the country is at 9.2% per annum that is quite an impressive figure. Growth of merchandise exports and rise in exports of services have strengthened the foreign reserves of the country. The major destinations for exports are United States, United Arab Emirates, and the OPEC (Organization of Petroleum Exporting Countries). The active participation of India in international commerce has created enough opportunities for economic growth and development. The impressive growth rates and statistics predict the emergence of a strong economy in the coming future. Economists predict that the Indian economy will become a super economic power in the next two decades. Some of the major development indicators of Indian economy are summarized below: High rate of savings, almost 32% of the GDP and higher rate of investment – approximately 34% of the GDP indicate accelerated growth rate. A young population of the country is another factor contributing to the overall economic growth and development. Highly educated masses contributing to skilled labor force is yet another factor contributing to the rise in the IT and BPO sector. Economic growth has created huge employment opportunities that have helped in reducing poverty considerably. Economic reforms and policies adopted by the Government of India towards social upliftment with particular stress on education, health, and infrastructure has greatly assisted the process of economic growth. 3. Issues facing the Indian Economy India may be reckoned as the emerging economic power of the future, but it has its share of challenges that need to be overcome. Lack of adequate institutional and infrastructure facilities may create bottlenecks in the growth and development of the economy. Since independence the country has faced huge challenges in its way to modernization and political, economic and social growth. Impediments in the form of poverty, illiteracy, unemployment, poor health facilities, and socio-cultural barriers posed grave problems in its road to development. The fast rate of growth aided by effective economic reforms helped in overcoming these challenges to a great extent. Poverty and illiteracy were reduced considerably with adequate measures adopted in the form of Five-year plans implemented by the successive governments. The upliftment of the masses by creating employment opportunities and provision for free and compulsory education for all across the country did have significant effect on the economy. Infrastructure also received considerable attention in the development plans resulting in the emergence of a new and modern India. In spite of tremendous progress India still faces major challenges that need to be overcome if the country wants to become a superpower in the near future. The issues and challenges faced by the Indian economy currently are given below: Sustaining a growth rate of 8% per annum for the consecutive five years will be one of the biggest challenges for the Indian economy. The entry of companies and business ventures into the Indian soil requires extensive paperwork and legal procedures. Most foreign companies find it a little intimidating to enter the Indian market due to these reasons. Relaxation and simplification of the entry procedures will definitely work in the interest of the Indian economy. The huge population density of the country affects the gross per capita income of the country. The country’s economy is primarily agrarian but with rapid industrialization and governments boosting the service sector, agriculture has taken a backseat. The government needs to boost this sector as well giving it a more organized look.   Providing proper infrastructure to attract large scale foreign investment is much required for sustainable economic growth. The economy faces widespread problem of electricity supply, proper roads, and communication channels that can affect the economy adversely. Extending proper health care to all is another important issue facing the country. Health care has definitely improved over the past few years but it still remains inadequate by world standards. Poverty is still posing a stiff challenge to the economic growth and development. Inequality of wealth distribution is quite high across the country. Education is yet another challenge faced by the country. The government needs to implement effective policies and reforms to increase the overall standard of living of the poorer section and provide basic amenities to them. Reducing income inequalities along with social reforms are much required for overcoming these discrepancies faced by the Indian economy. The foreign direct investment has become a key feature of growing economic development and the focus of national development strategies in almost all countries across the globe. It is considered an important economic growth indicator that assists boost in domestic capital, productivity, and employment. It is considered to be the lifeblood of any economy. The Indian Government has initiated several promotional efforts to attract more foreign direct investment into the country in the form of private equity. There are several trends that are reinforcing traditional patterns in foreign direct investment across economies that include access to natural resources, markets, and low-cost labor. Globalization and liberalization of the economy added to the attraction of private equity funds in to the country. In addition to these economic factors the expansion in information and communication technologies, and improvement in logistics has greatly shaped the Indian economic attractiveness to foreign investors. Private equity investors across the globe are increasingly shifting their focus to India. Big names in private equity market across the globe like Blackstone Group, Texas Pacific Group, Kohlberg, Kravis and Roberts, Carlyle Group, Actis Partners and General Atlantic Partners have ventured into the Indian markets in search of higher returns on investment. 4. Growth Trends of Private Equity in India The market for private equity in India has emerged quite recently. The private equity market grew from a US$ 20 million in 1996 to US$ 7.5 billion in 2006. The country is now reckoned as one of the top ten destinations for private equity investments. Investors across the globe are eyeing the growing Indian market that offers extensive investment opportunities. Local and foreign investors are eyeing the domestic market investment opportunities with increased interest. The major sectors of investor interest are the IT and BPO sectors that continue to dominate the economy but manufacturing concerns are not far behind. Investors are taking avid interest in this rapidly growing market parallel to the Chinese economy that has shown immense potential in the past few years. The rise in entrepreneurship, skilled workforce, rising percentage of people with fluent English speaking capability and the country’s status as the world’s largest democracy have greatly contributed to its rising economy. The private equity market has risen both in terms of greater number of deals and greater number of firms’ capitalizing on this increasing opportunity. The Indian private equity market also saw an increase in exits and improved liquidity in the recent years. The Asian market has largely been perceived as difficult for exits in the private equity sector. Investors are wary of the fluctuating market trends and risk proposition involved in capitalization of their funds. Unlike the Asian market the Indian market has been strengthening over the years this has attracted the investors greatly. The increasing liquidity of the market has played in favor of these investors providing higher gains and returns from public offer deals and trade sales. As per K.P. Balaraj, the Managing Director and co-founder of West Bridge Capital Partners, â€Å"In India, the markets are in their third or fourth year of a bull run. The companies have a number of avenues to raise money at low cost. There’s a lot of liquidity in the debt system. The IPO markets and capital markets are very strong in India, and there’s lot of appetite overseas for Indian securities.† The Indian market has gained the investors’ confidence due to the stable environment and growth statistics that has worked to its advantage in the past few years. The foreign investment growth in the private equity market is seen as yet another boost to this finance segment contributing to a market capitalization of more than US$ 3.56 million in the year 2005. The private equity funds invest mostly in unlisted companies that have good growth potential and cash out option through public offers. In some cases the private equity firms invest in both seed capital and development ventures that have potential high rates of returns on investment. According to a study conducted by Venture Intelligence, a Chennai based research firm, â€Å"Private equity firms invested a record $7.46 billion over 299 deals in India during 2006,† that is three times greater the previous year figures. The biggest deal clichà ©d in 2006 involved Idea Cellular, the fifth largest wireless operator in India, raising a funding of $950 million from a group of private equity investors that included Providence Equity Partners, ChrysCapital, and Citigroup. Another important deal involved Kohlberg Kravis Roberts that paid $900 million for 85% stake of Textronics Software. Warburg Pincus’s $300 million investment in the year 1999 in Bharti Tele-Ventures the largest mobile service provider in India was subsequently sold in several stages for $1.6 billion. This is considered one of the most profitable private equity deals in the country to date. These high rates of returns and attractive gains lured many foreign private equity investors to the Indian market. The tremendous growth of the private equity market in the country is largely attributed to a combination of country-specific factors that distinguish the Indian environment in terms of investment opportunities from other emerging markets across the globe. These factors include: Sustained rapid economic growth of 8% per annum over the past five years consecutively. Rising domestic consumer market of India has given rise to potential business opportunities. A well-established public equity market of India has given rise to increasing breed of private equity investors in the country. The Mumbai stock exchange dating back to 1875 has more than 6000 listed companies recording extensive trading volumes comparable to no other exchange in the world. A highly educated population combined with widespread knowledge of the English language provides a distinctive advantage. The skilled workforce has resulted in the rising development of certain sectors like information technology, business process outsourcing, software development, pharmaceuticals, and automobile components. The country has one of the oldest and largest democracies in the world running successfully across decades. The stable political scenario combined with an effective legal framework has provided the economy with sound base for development and growth. The distinctive advantages mentioned above have created a huge market for private equity funds investors. Private equity firms are investing in retail, manufacturing, healthcare, real estate, infrastructure, media, and telecom sectors in India. India is the second largest market for private equity firms in Asia after Japan. It has surpassed China and Singapore with large amounts of investment in private equity and venture capital in the year 2006. (Source: Indiaopportunitiesfund.com) Research conducted by global research firm Evalueserve suggest that India will receive almost US$ 20 billion private equity funding by the year 2010 making it one of the top ranking countries in the world in terms of private equity investment. The lucrative Indian market has attracted foreign private equity investors in the past couple of years. As per a market analysis report released by Venture Intelligence the foreign capital investment reached US$ 2.2 billion in the year 2005 that increased to US$ 5.4 billion in the year 2006. The market research and analysis conducted by Evalueserve reveals that the Indian market needs an in-depth understanding and evaluation for the investors in private equity market to maximize returns. The investors need to conduct proper market research, adopt subtle managerial skills, and instill patience in order to maximize gains since the market is unique in many aspects. The research shows that there are over 366 firms currently operating in the private equity market in India and another 69 are in the process of starting funding operations. These private equity firms have targeted to raise funds totaling US$ 48 billion for investment between July 2007 and December 2010. This predicted growth statistics may face challenges in the face of economic slowdown in India or a liquidity crunch in the economy. The first firm to initiate private equity investment in India was the Risk Capital Foundation set up in the year 1975. Till the year 1995 very few financial institutions provided capital for investment in private equity or venture capital sector. These institutions were the Industrial Finance Corporation of India (IFCI), Industrial Development Bank of India (IDBI), and Industrial Credit and Investment Corporation of India (ICICI Bank). A number of private equity firms started raising capital from various international and domestic sources to invest in business ventures in the country. This market trend gained momentum during the period 1996 to 2000. The total amount of investment in the private equity and venture capital segment rose from US$20 million in 1996 to US$ 80 million in the year 1997. The market attracted increasing investment from foreign as well as domestic players largely due to the boom in the information technology sector. A crash in the market during the period of 2000 to 2003 brought down the levels of investment. The total number of deals in private equity finance reduced from 280 in 2000 to 110 in 2001. The economy recovered in 2003 and the market growth rate accelerated from 8% GDP to 9% annually. 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Number of deals 5 18 60 107 280 110 78 56 71 146 299 Value of deals 20 80 250 500 1160 937 591 470 1650 2183 7460 (Source data: Private equity market in India Evalueserve Market research report 2007) Out of a total GDP of US$ 910 billion in India in the year 2006 approximately US$ 7.5 billion accounted for private equity investment. This amounts to 0.8% of the total GDP. A comparative analysis of the private equity investment in other developed countries reveal that the percentage spent on private equity is far below countries like United States and United Kingdom. Private Equity Investment as a percentage of Total GDP of some major economies: (Source: Evalueserve Market research reports 2007) A global stock market review conducted by Standard and Poor ‘s in May 2007 reveals that the Indian equity market has far surpassed the markets of emerging and developing nations for the past three months growing at a rate of 25.87 percent as opposed to other key economies that reported a growth rate of 13.83 percent. The Chinese market reported a growth rate of 16.82 while the Mexican market growth rate stood at 24.4 percent. The equity market in South Africa rose by 11.48 percent. It was observed that the Indian stocks were cheaper than the Chinese stocks. The appreciating rupee in India has led to higher capital inflow from foreign investors to the Indian economy and this is accounted for higher growth rate in the Indian economy. The increase in interest rates of banks across the globe has a positive impact on the Indian economy. This trend will result in reduced external borrowings and consequently the export segment of Indian companies will not be affected. Similarly other developments in the global economy has had very little or negligible effect on the Indian economy so far and this has proved conducive for the private equity market in the country. The Securities and Exchange Board of India (SEBI) has specified the regulatory framework for investment in private equity and venture capital segment in India. A foreign investor proposing for investing in the Indian private equity market needs to fulfill the following eligibility criteria and other requirements specified in the SEBI foreign venture capital investor guidelines: The applicant’s track record, competence, financial soundness, and experience in the related industry are evaluated. The applicant needs to obtain an approval by the Reserve Bank of India for making investments in the country. The applicant needs to be an investment company, trust, partnership, pension fund, mutual fund, endowment fund, charitable institution or any other entity incorporated outside India. The applicant can be an asset management company, investment manager, or investment management company incorporated outside India. The applicant must possess the authority to invest in venture capital or operate as foreign venture capital investor. Evaluate if the applicant is regulated by an appropriate foreign regulatory authority or is an income tax payer. Check if the Board has not refused the applicant a certificate. Check if the applicant is a fit individual with proven track record. Besides the above-mentioned eligibility criteria the SEBI lays down certain investment guidelines that need to be followed by the foreign investors: The foreign investor must disclose its investment plans and strategies to the SEBI. At least 66.67% of the investment funds must be invested in unlisted equity shares. Not more than 33.3% of the investable funds may be invested in: Subscription of initial public offer of a venture capital undertaking whose shares is not listed. Debt or debt instrument of a venture capital undertaking in which the investor has already made an investment by way of equity Preferential allotment of equity shares of a listed company, subject to a lock-in period of one year The equity shares or equity linked instruments of a financially weak or sick industrial company whose shares are listed. 5. Sector Wise Growth Trends in Private Equity Market The primary feature of growth in private equity market in India has been the increased domestic market investment opportunities that are dominated by both local and foreign investors. In addition to the increase in investment in Information Technology and Business Process Outsourcing sectors a large number of deals have been made involving the domestic market in India with particular emphasis on the manufacturing sector. In the year 2006 the total investments in the private equity market ranged from IT and IT-enabled industries, to banking and financial services, insurance and health care sectors, engineering and construction to manufacturing. While the IT and IT-enabled industries accounted for more than a fifth of the total investment, the manufacturing sector attracted approximately $1 billion. Another significant sector receiving substantial private equity funding was the real estate sector that received almost $1 billion funding in 2006. But a greater portion of this amount was used to acquire physical assets. Shankar Narayanan, the Mumbai based Managing Director of Asia Growth Capital at the Carlyle Group states â€Å"We’re sector agnostic. Broadly we see two investment themes: One, the growth of outsourcing, whether IT, IT-enabled services, generic pharmaceuticals, clinical research, contract manufacturing, engineering and design or any other knowledge based service; and two, the huge infrastructure and consumption needs this growth fuels.† Most of the foreign investors are channeling funds to the Indian and Chinese market that have shown tremendous growth potential. These investors scale up the operations of the acquired firms and facilitate all-round transformation that spruces up the firm’s processing capabilities. It is widely felt that the family owned businesses in India that have so far been conducted in an orthodox traditional managerial approach can widely benefit from the private equity funding. The financial, strategic, and managerial support provided by these private equity-investing firms can transform the company’s operations to provide larger scales of operation and world-class business outlook. The various industrial sectors comprising of financial services, manufacturing industries, construction and information technology are attracting the foreign investors to India. In the year 2006 the service sector accounted for 55% of economic growth rate while the contribution of manufacturing and industries’ sector was 26% and the agriculture sector accounted for 19% of the overall economic growth in India. There are basically three industry sectors that are proving highly lucrative for the private equity investors in the country. These are broadly categorized as below: Hi-tech products and service sector comprising of the following segments: Information technology and software application development Business process outsourcing Knowledge process outsourcing Drug research and clinical research outsourcing Engineering services outsourcing Software and solutions related to e-commerce Telecommunication products and related services The market trend reveals that this sector will grow at approximately 22% per year during the next five years. The investment in this sector is of high value with higher rates of return. Service and retail sector that caters to the Indian domestic market needs including – Retail market of consumable goods Travel and hospitality sector (airlines, hotels) Health care (spas, hospitals) Entertainment (movie and television industry) Private education sector   This sector is expected to grow at approximately 19% per annum in the next five years. Products and services related to high-end manufacturing and infrastructure that includes automobiles, automotive components, electronic components, chemicals, pharmaceuticals, gems and jewellery, textiles, real estate, and construction. The growth rate of this sector is expected to reach 19% annually in the next five years. The pie chart below gives an insight into the sector wise private equity investment trend in the past three years. The financial services received the highest foreign private equity funding totaling US$ 277.8 million that constitutes 19.8% of the total funds invested. The total funding in this sector including the domestic investment accounted for 32%. (Source: Thompson Financial) The next industry that received most funding in the private equity form was the consumer related sector totaling US$ 196.7 million. This was approximately 14% of the total foreign private equity financing. The overall financing in this sector was 23%. The Medical Health industry accounted for 16% of the total funding, with total foreign equity investment amounting to US$ 134.4 million, followed by construction accounting for 15% and the Internet related sector accounted for 14% of the total private equity investment including foreign and domestic sources. The graph below shows the breakup of domestic and foreign funds invested in the private equity market in India. As is evident from the graph the amount of foreign investment far exceeds domestic funds invested in the private equity market in India over the past five years. Private Equity investments in India – breakup of foreign and domestic investment over the past five years (Source: Thomson Financial) The private equity market is thriving due to the huge influx of foreign funds in the recent years. The appreciation of the rupee combined with a strengthening stock market and controlled inflation rates are responsible for the huge attraction that the Indian private equity market is having for foreign investments. Among recent activities in the private equity market in India is the acquisition of Hutchinson Essar Ltd, a cellular carrier by Reliance Communications facilitated by private equity players like Blackstone, Texas Pacific, and Kohlberg Kravis and Roberts with a funding of almost $10 billion. Private equity emerged as the single most largest investment segment in the year 2006 with private equity deals overtaking both foreign and domestic strategic investors. Private equity investment in India crossed the global average by 20 percent of investment as a proportion of total merger and acquisition deals accounting for 28 percent of total value of deals. 6. Problems Facing the Private Equity Market in India The rapid pace of economic growth in India has raised concerns regarding the stability of the economic environment. The economy poses certain risks and challenges to the emerging and developing market of private equity investment. The country’s population demographics present a confusing picture – 54% of its population is below 25 years of age that works in favor of the economic growth and development. But at the same time statistics reveal a large gap in income distribution. The economy is widely imbalanced in terms of income distribution. It has a large chunk of population still under the poverty lines and at the same time the number of high net worth individuals is increasing. Some of the important sectors of the economy like Information Technology and IT enabled services, telecom services, airlines services and construction services are experiencing shortage of skilled labors. Most of these sectors depend heavily on the human resource for survival and growth. With rising inflation and increasing wages the companies are finding it difficult to retain employees. Better pay packages are luring the skilled staff to hop companies and this has become a matter of grave concern for most organizations. Increasing attrition rates and rising wages are posing a serious challenge to existing companies and start-up business ventures. A few years back the economy was known for providing cheap and skilled labor but with rising inflation the wages have also gone up thereby increasing the cost to companies in addition to high levels of attrition. The rapid economic growth and rising GDP has resulted in increasing cost of commercial as well as residential property. The boom in real estate is reaping benefits for most landowners but the purchasing power of the people have not increased at the same rate. This might have a negative impact on the economy in the long run. The real estate prices will be forced to crash with lesser number of people being able to afford the rising prices. The crash in the real estate market will result in substantial losses for the investors. The Indian stock market is currently on a strong footage with number of companies listed in the Bombay Stock Exchange rising steadily. A market fluctuation might topple the stock market any time and this could lead to severe losses for the investors. Foreign investments in the Indian economy in the last four years have been on the rise and this is one of the major factors contributing to the overall development and progress. Short-term foreign institutional investors invested more than US$ 40 million in the country while long-term foreign direct investment was US$ 23 million in the last four years. The short-term investment can be pulled out in any moment of crisis and this could result in severe economic setback for the country. The rapid inflow of capital in the form of these short-term investments for purchasing equities and securities has no doubt strengthened the stock market, but an outflow of this capital will depress the stock market and cause the economy to fumble. The economy needs more of long-term foreign direct investment to stabilize growth. Lately the Indian rupee has appreciated by more than 10% with respect to the US dollar, 8% with respect to British pounds, 7% with respect to Euros and 11% with respect to Yen. On one hand this appreciation has benefited the economy by making imports cheaper and controlling inflation to a considerable extent. The price of crude oil has been kept in check in India due to this reason. On the other hand the valuation of exports has gone down and this has hit some of the small-scale exporters hard. Moreover the Indian goods have to compete with Chinese goods in the market that are relatively cheaper and has captured larger market share. Broadly the Indian economy presents high risks to investors in terms of possible depreciation of rupee, high inflation, policies adopted by the Indian government for further liberalization of the economy and the highly volatile nature of the Indian stock market. Since the markets present high risks to foreign investors in the Indian market, they expect higher returns as compared to investments made in other developed economies of United States and Europe. The private equity firms that invest in these developed countries for a period of five to seven years expect an average net annual return of 13% to 15%. But the private equity firms investing in India have a time frame of three to five years and expect an average net annual return of 25% to 27%. 7. Future Trends in Private Equity Market in India Several factors have contributed to the growth and rise of private equity market in India. Among these the most prominent is the stable economic and political environment of the country that has triggered economic growth and prosperity in the past few years. The Indian economy is witnessing increasing number of high net worth individuals with increasing assets. The country has a large number of family-owned businesses that present excellent opportunities for investment and growth. Most of these businesses are changing their operational structure to accommodate new and better technology for higher returns. Tatas, Ambanis, Wipro (Azim Premji), Birlas,   Singhs (Ranbaxy) and Bajajs are all family-run business. The Bombay Stock Exchange lists 47 companies that are partially or fully family-owned businesses with a total market capitalization of US$ 345 billion in the year 2007. The changing faces of the traditional modes of conducting business have created huge scope for investment. The existing modes of operations require re-modeling and re-structuring requires adequate investment. The family-run businesses lack effective management and vision to expand in the domestic and global market. The infusion of appropriate capital funds with strategic management moves and planning can create a huge difference in this type of business ventures. An investment in such companies can prove mutually beneficial for both parties. This has created a huge demand for private equity investment. Rising disposable income in the middle and higher income group has led to significant changes in their lifestyle. This has created markets for new sectors of commerce. One of the sectors affected by the changing lifestyle of these classes is the growth in domestic flight service sector. The country currently has 325 airplanes on the domestic route but this figure is projected to reach 750 by the end of 2010 that is expected to generate annual revenue of US$ 12 billion. The rise in this sector has created the need for more airline maintenance companies that are so few in numbers currently. Likewise it has also created market need for airline certification companies that will certify and check the audit requirements of the airplanes and the airlines companies. This is just an illustration of how emerging economic trends have given rise to new service sectors that require financing. Similar trends are visible in the food and beverage industry sector. Rising demand for quality processed food and beverages are slowly making their presence felt with changing tastes and lifestyles. The automobile industry is yet another industrial sector witnessing immense market growth potential. Finer tastes and longing for world-class cars engineered with latest technological specifications is changing the face of this industry. This sector is expected to generate revenue of US$ 165 billion by the end of the year 2016. E-commerce is yet another avenue of potential growth and development. The sector being in its nascent stages has a long way to go in the Indian market. Industries are slowly realizing the revenue and growth potential of this medium and are revising their existing strategies to exploit the advantages of increased market share and global outreach. The need for skilled professionals for the rising industries and opportunities presented by the growing economy has driven the educational institutes to adopt new strategies and expansion models to cater to changing market needs. More and more companies are entering this sector to satisfy the growing market requirements. The real estate and hospitality service sectors are also experiencing widespread changes owing to changing lifestyle and increased disposable income. Investment in this sector needs to be carefully examined and studied since the real estate prices in India are overpriced as compared to other economies in Asia. A growth in market demand has resulted in subsequent rise in demand for capital investment. Favorable economic conditions have lured private equity investors both domestic and foreign to start operations in India. The country’s extensive pool of skilled labors has produced excellent managerial and entrepreneurial talent who has ventured into new and promising business ventures. The private equity market in the country is still in its initial phases of development and hence promises immense scope and potential in the near future. The increasing interest of global firms in the Indian market has overcome the challenge of attracting more funds into the private equity sector. The real challenge now lies in extracting maximum value from these investments and retrieve higher gains. Government policies have raised the foreign direct investment (FDI) limit in various sectors to attract more funds. The retail sector now has 51 percent foreign investment limit while in the telecom sector the FDI limit has been raised from 49 percent to 74 percent. Absolute ownership of foreign firms is allowed in some selected infrastructure sectors like development of new airports, petroleum, mining of coal and lignite, natural gas pipelines and mining of diamonds and precious stones. 8. Conclusion The impact of private equity funding on the country’s economy has been quite significant since this financing sector has added new dimensions to the booming industrial and service sector in India. The financing alternative available to the firms has not only assisted them in improving financial and market valuations but has also provided them with the necessary backing to fulfill expansion and diversification strategies to the existing line of products or services. Max Calderon, a senior partner of Apex Partners Worldwide, which is a $20 billion firm is of the opinion that the â€Å"drivers of the private equity investment in the Indian market include consolidation in fragmented industries, international expansion, increasing domestic market spend, and continued growth in value added services. â€Å" It is only recently that the private equity funds have adopted segmentation and specialization strategies in acquiring investment portfolios. Some of the private equity firms target early stage investment in technology or matured stage investment in manufacturing. The strengthening stock market is witnessing increased volumes of trading and this has eased the exit process for private equity funds investors. Multinational financial institutions like Citigroup Venture Capital, Barings and Westbridge Capital, Warbug Pincus and Actis Partners have taken strong interest in this emerging market. Global private equity players like Blackstone and Goldman Sachs have established permanent operations in the country to reap the benefits of this promising market. The key factor to successful operations in this market will depend largely on one sole factor – the right leadership and availability of a strong team of professionals. The private equity market requires adequate managerial talent for designing effective business strategies for successful acquisitions made by the investors. It is therefore essential that the private equity firms focus on specific industry sectors to build their professional expertise and specialized areas of operations. This builds on the firms’ value and potential for higher rates of returns over their invested funds. The private equity firms hence not only need to look into the experience and skill sets of the professionals they hire but also need to train them on the finer aspects of the business requirements. The team of executives need to take overall responsibilities of entire operations and functioning within the company and think as owners while devising strategies and business plans. An in-depth knowledge of the business and market area is an essential asset for this venture. Experienced professionals are hence much in demand and a valuable asset for this market segment. The private equity firms also need to conduct extensive and in-depth market research and analysis activity before investing in any company. The Indian economy presents a diverse and variable growth indicators across the geographical boundaries. An understanding of the existing socio-cultural and political environment of the region helps to understand better the market and consumer behavior pattern. The investors across the globe are increasing fund allocations for the private equity market in India. It is boom time for this market segment and the trends of growth will continue over the coming years with the adoption of adequate government policies and measures to ensure a strong market performance.   The private equity market is reaping benefits on the one hand from expanding into overseas market through acquisitions and on the other hand investing into private equity assets managed by global fund managers. Reference: What PE firms look for in Private Companies – Financial Executive Journal from British Council, December 2007 Private Equity: How long can the perfect storm last? Financial Executive Journal from British Council, September 2007 Think like private equity to enhance Financial Executive Journal from British Council, November 2007 Evalueserve Whitepaper – An indispensable guide to equity investment in India, Facts and Forecasts – September 2007 –   Market analysis report from www.evalueserve.com From BPO to buyouts, Indian private equity is booming – 2005 AVCJ Private equity report – India Private equity pushes into India, Africa Financial Executive Journal from British Council, January/February 2008 Indian Buyouts – A market report by Anthony O’Connor Journal from British Council, June 2006 Economics of private equity market – Stephen D. Prowse, Federal Reserve Bank of Dallas – Economic review journal third quarter 1998 Recent developments in the private equity market and the role of preferred returns – Daniel Covitz and Nellie Liang, Board of Governors of Federal Reserve System, Washington DC   An overview of private equity: evolution of the asset class, rationale and considerations for investing and keys to success – James McGovern Review of the Economy 2007/2008 – Economic advisory council to the Prime Minister of India, New Delhi, January 2008 Our current perspective on private equity investing in India – Gopal Jain, Gaja Capital Partners Investing in India – Surging economy sees private equity investments soar by Arun Subramaniam – The Wall Street Journal, January 24, 2007 http://www.ventureintelligence.in/WSJ-01-07.pdf accessed on 30th March 2008   India’s economic star sectors: sliced and diced – an analysis on foreign private equity investments among India’s top industries – Thomson Financial www.thomson.com/financial   Private equity in India – adding human capital to the value creation recipe – Luis Moniz – Heidrick Struggles http://www.heidrick.com/NR/rdonlyres/BDE42EF8-E443-44D9-9B6F-48E69D67093D/0/HS_PrivateEquityIndia.pdf accessed on 31st March 2008 Private equity market in India http://www.indiaopportunitiesfund.com/private-equity-market-in-India.html accessed on 31st March 2008   India tops global market with 26% growth: SP – June 9, 2007 http://www.thehindubusinessline.com/2007/06/09/stories/2007060906500100.htm accessed on 30th March 2008   An introduction to Private equity http://www.bvca.co.uk/publications/guide/intro.html accessed on 30th March 2008 What is private equity? http://www.ipeit.com/pe.htm accessed on 30th March 2008   http://www.indiape.com/ accessed on 30th March 2008 http://www.idfcpe.com/pages/main1.html news articles accessed on 30th March 2008   http://www.privateequitycouncil.org/ Public Value: A primer on private equity 2007 – accessed on 30th March 2008   Economy watch – Indian economy overview http://www.economywatch.com/indianeconomy/indian-economy-overview.html accessed on 30th March 2008   http://news.indiamart.com/news-analysis/india-is-most-immune-18256.html accessed on 30th March 2008   Global research project on growth – India: Economic Growth, 1950 – 2000 by Shankar Acharya and Isher Ahluwalia http://www.gdnet.org/pdf2/gdn_library/global_research_projects/explaining_growth/India_complete_31Mar04.pdf accessed on 30th March 2008   The rise of Indian Economy: John Williamson http://www.unc.edu/depts/diplomat/item/2006/0406/will/williamson_india.html accessed on 30th March 2008   Indian Economy – Section 1: Economy and Markets http://www.bseindia.com/downloads/IndianEconomy.pdf accessed on 30th March 2008   Private equity article: http://www.privateequityinfo.com/article.php accessed on 30th March 2008   Globalization of alternative investments – working paper volume 1 – the global economy impact of private equity report 2008 – World Economic Forum http://www.weforum.org/pdf/cgi/pe/Full_Report.pdf accessed on 30th March 2008   A coming of age for private equity Business Standard, 7 November 2007 http://www.mayin.org/ajayshah/MEDIA/2007/pe.html accessed on 30th March 2008

The Great Gatsby | Critique

The Great Gatsby | Critique Be not afraid of greatness: some are born great, some achieve greatness, and some have greatness thrust upon them. This quote voiced by William Shakespeare is a popular idea among many all over the world. Whether this idea is true or not, one thing is certain. Jay Gatsby in the novel The Great Gatsby was truly a great figure. Greatness is a definite and identifiable quality. Modern-day greatness can be defined in four points. Firstly, having honesty and integrity. More elaborately, having enviable qualities and a strong conviction to stand up for what is right. Furthermore, making the world a better place than you met it. And lastly making a positive impact in your world even when you have passed on. Gatsby was not an honorable and noble man. His dishonesty about his true identity and background puts his greatness in question. Ill tell you Gods truth, I am the son of some wealthy people in the Middle West-all dead now. I was brought up in America but educated at Oxford, because all my ancestors have been educated there for many years. He further continues to say, My family all died and I came into a good deal of money. The truth concerning his background is exposed later on in the novel, where Nick narrates James Gatz-that was really, or at least legally, his name. He had changed it at the age of seventeen His parents were shiftless and unsuccessful farm people-his imagination had never really accepted them as his parents at all. Clearly all of what he claimed to have been has been proved false. Even Nick affirms to Gatsbys falsehood when he says Moreover he told it to me at a time of confusion, when I had reached the point of believing everything and nothing about him. Furthermo re, Gatsby cannot be considered noble because he aspired to take another mans wife. I suppose the last thing is to sit back and let Mr Nobody from Nowhere, make love to your wife. Gatsby didnt make the world a better place than he met it. His illegal businesses only helped make others lives worse. Youre one of that bunches that hangs around Meyer Wolfshiem A great a man wouldnt be carrying out illegal business with a criminal. Further evidence that Gatsby had made peoples lives miserable, was when Tom said, And you left him in the lurch, didnt you? You let him go to jail for a month over in New Jersey. Moreover, like Nick said, if Gatsbys partnership had included the Worlds Series transaction 1919 then that transaction would finally support that Gatsby never made his world a better place. The last mark of greatness, that Gatsby didnt possess, was that he didnt make a positive impact even while he was dead. This was unveiled when no one showed up to his funeral. The minister glanced several times at his watch, so I took him aside and asked him to wait for half an hour. But it wasnt any use. Nobody came. No normal person dies without anybody coming to their funeral, not to talk of a great person. Not even his closest companion, Meyer Wolfshiem, attended his funeral. Let us learn to show our friendship for a man when he is alive and not after he is dead. Furthermore, when Gatsby died the world continued as though he never even existed. Gatsbys house was still empty when I left the grass on his lawn had grown as long as mine. However, could it be possible that the word great in The Great Gatsby could mean something more than the modern meaning of the word? Could it be that Gatsby was truly great in reference to a certain aspect of his existence? Although he may not fit the present day meaning of the word, Gatsby can be described as great. Gatsby is admired and idolized in the eyes of only one character in the novel-Nick. If personality is an unbroken series of successful gestures, then there was something gorgeous about him, some heightened sensitivity to the promises of life Nick has some deep insight into the character of Gatsby. For example when he comments on Gatsbys smile saying, It was one of those rare smiles with a quality of eternal reassurance in it, that you may come across four or five times in life. It is evident, that Nick admired several aspects of Gatsby. One of such aspects was Gatsbys ability to make a new identity for himself when he needed to be someone else. So he invented just the sort of Jay Gatsby that a seventeen-year-old boy would be likely to invent, and to his conception he was faithful to the end. He did whatever was necessary to attain this new identity. Practise elocution, poise and how to attain ità ¢Ã¢â€š ¬Ã‚ ¦ Read one improving book or magazine per week. Another one of such aspects that Nick commended was Gatsbys romanticism. it was an extraordinary gift for hope, a romantic readiness such as I have never found in any other person and which it is not likely I shall ever find again. In a world where moral standards were deteriorating and where true love was lacking, Gatsby was a shining example. For Gatsby, the fulfillment of the American Dream was to possess Daisy Buchanan, a woman whom Gatsby perceived as an ideal wife, the golden girl, the kings daughter, a grand prize, and a perfect match. It excited him that many men had already loved Daisy-it increased her value in his eyes Gatsby was overwhelmingly aware of the youth and mystery that wealth imprisons and preserves, of the freshness of many clothes, and of Daisy, gleaming like silver, safe and proud He found her excitingly desirable. Gatsby never deviated from his aspiration of winning Daisy, even in the face of opposition and stark reality. Nick admired that along with Gatsbys steadfast determination. And lastly, Nick admired Gatsbys dedication to making his dreams a reality. Gatsby was willing to give everything for this dream. Gatsby knew he would need wealth to get Daisy, so he established a business that would give him prosperity. Moreover, he bought a house right across the bay from Daisy, just so he could be close to her. Not to mention how he hosted parties, night after night just so he could find Daisy. His unwavering optimism, even when Daisy had clearly rejected him and chosen Tom, was worthy of praise. I suppose Daisyll call too. His dreams had always sustained him and increased his perseverance. à ¢Ã¢â€š ¬Ã‚ ¦ he stretched out his arms toward the dark water in a curious way, and, far as I was from him. Nick was impressed by Gatsbys ability to live for and purse one dream, which he didnt realize was unachievable. à ¢Ã¢â€š ¬Ã‚ ¦his dream must have seemed so close that he could hardly fail to grasp it. He did not know that it was already behind him, somewhere back in th at vast obscurity beyond the city, where the dark fields of the republic rolled on under the night. Nick overlooks all of Gatsbys flaws and shortcomings and sees a greatness in Gatsby that no other character recognizes. Gatsby believed in the green light, the orgastic future that year by year recedes before us. Finally, we could say that Gatsby is not a man of honor and integrity. But however, he was the one that decided to take the blame for running over Myrtle, which eventually cost him his life. Gatsby might not have made the world a better place than he met it, however like Gatsbys father said If hed of lived, hed of been a great man. A man like James J. Hill. Hed helped build up the country. And although he didnt make a lasting impact even when he was dead, he did while he was alive, especially on Nick. In conclusion, despite his shortcomings, flaws, and unfortunate outcome, his unfailing love and strong drive for success are what make him, Jay Gatsby of West Egg, great.

Mary, Where are U :: essays research papers

The debate over whether or not the United States government should grant tuition vouchers to the parents of children who attend private schools has gone on for many years, and has included many powerful arguments on both sides of the issue. Those who support the private school vouchers believe that they are beneficial to everyone because they promote productivity in both public and private schools alike, and they also give low-income families the chance to give their children a quality private school education. Those in opposition to the vouchers say that they will drain money out of the public schools, and that they only truly help a small population, mainly the wealthy and advantaged. Opposers also believe that the vouchers interfere with the Separation of Church and State, since many private schools have a religious affiliation. This issue has truly been a controversial one, with many people fighting arduously. After reading through the various arguments for each side, one can not help but come to their own conclusion about private school vouchers. There have been many school voucher programs proposed in the past, but they all seem to share one common theme. This similarity between them is that they all promote giving households that send their children to private schools a tax dollar-funded voucher that would cover all or most of the cost of the school's tuition. Many of the proposals also include the right for parents to chose which private school their child will attend. The vouchers allows students to use the money that would be subsidized for them in a public school to go toward a private school education. This system redirects the flow of educational funding, bringing it to the individual family instead of the school district. The idea of school vouchers first became popular after Milton Friedman, an economist, released two publications, in 1956 and in 1962, that supported the voucher plan. In his 1962 book, Capitalism and Freedom, when Friedman discusses education, he turns to public education criticizes it for being "unresponsive" because it has been free from competition (Lieberman, 120). Vouchers would provide this much needed competition, since public schools would now have to contend with the private schools that were receiving the same payments they were. Friedman believes that, "most dissatisfied parents have only two options. They can enroll their children in private schools, in which case they have to bear the costs in addition to paying taxes to support public schools. Or they can resort to political action, an option Friedman regards as ineffective." (ibid.) After Friedman publicly showed his support for school vouchers, a debate began

Mythological Aspects of the Aeneid

â€Å"Compare and contrast the mythological aspects of the Aeneid with those found in the Greek Iliad and Odyssey. Do you think Aeneas is more of a hero than either Achilles or Odysseus? Explain your answer. † In order to properly compare and contrast the mythological aspects of Aeneid with Iliad and Odyssey, the authors must first be examined as their writing style and personal history influences their stories. Homer, the author of Iliad and Odyssey, was both a poet and an entertainer, and is revered as one of the greatest Greek authors who lived.He was spontaneous and easily captivated his audiences with his stories of Greek gods and heroes, although he was a man of humble decent with no political aim to his poetry. His works were originally presented orally and later dictated. (Powell, 2009). Aeneid was written by Vergil, a well educated son of a farmer â€Å"steeped in written Greek poetry and philosophy and in personal contact with the most powerful men in the world. â⠂¬  (Powell, 2009).Vergil lived between 70 – 19 BC, many years after Homer, and was obviously inspired by Homer’s Odyssey and Iliad to write Aeneid. Unlike Greek culture and religion surrounding Homer’s mythology, the Romans accepted their myths with the same propriety as their history, serving political as well as moral purposes. (Powell, 2009). At first glance, one might see the significant influence that Homer’s works had on Vergil’s Aeneid, and even fail to see much difference between them.Both authors have taken stories of the gods’ influences on men and the earth, incorporated values such as â€Å"honor and destiny† (Powell, 2009), and the timeframe for which they were written are also similar, even though the two authors lived many years apart. However, the difference seems most significant how the authors’ characters are portrayed and the underlying meaning of the stories themselves. As mentioned above, Vergil’s work had more to do with a political and moral agenda than that of entertainment.Unlike Homer’s characters who act and express emotion and truly are who they pretend to be, Vergil’s Aeneid was intended to represent more than this. â€Å"Characters and events in Vergil’s myths have various levels of meaning; they stand for more than meets the eye. † (Powell, 2009). Vergil had a political agenda with this work, which was to satisfy Rome’s need for the world to depict Roman conquest and Augustus’ regime as superior. (Powell, 2009). So the reflection of these stories’ emotional impact is quite different when seen for what they are.Homer’s works were for entertainment and of Greek cultural and religious influence, relating to his people’s history. Vergil’s Aeneid was written as propaganda, and stem from Greek mythological influence on the Italians. I find that Vergil’s work has a darker, more serious undertone when recognizing that he was not just writing about mythological characters, but rather the current regime and future of the world.References: Powell, B. P. (2009). Classical Myth 6th Edition. New York: Pearson Inc.

Free Essays on Typwriters

Typewriter patents date back to 1713, and the first typewriter proven to have worked was built by Pellegrino Turri in 1808 for his blind friend Countess Carolina Fantoni da Fivizzono. Commercial production, however, began only with the â€Å"writing ball† of Danish pastor Malling Hansen (1870). This device looked rather like a pincushin. Nietzsche’s mother and sister once gave him one for Christmas. He hated it. More significant is the sholes and &Glidden Type Writer, which began production in late 1873an appeared on the American market in 1874: Christopher L. Sholes, a Milwaukee newspaperman, poet, and part-time inventor, was the main creator of this machine. The Sholes & Glidden typed only in capitol letters, and it introduced the QWERTY keyboard, which is very much with us today. The keyboard was probably designed to separate frequently- used pairs of typebars sop that the typebars would not clash and get stuck at the printing point. The S&G was a decorative machine, boasting painted flowers and decals .I looked rather like a sewing machine, as it was manufactured by the sewing machine department of the Remington arms company. For an in-depth look at this historic device , visit Darryl Rehr’s Web site â€Å" The First Typewriter.† The Sholes & Glidden had limited success, but its successor, the Remington, soon became a dominant presence in the industry. The Sholes & Glidden, like many early typewriters, is an understroke or â€Å"blind† writer: the typebars are arranged in a circular basket under the platen(the printing surface) and type on the bottem of the platen. This means that the typist( confusingly called a â€Å"typewriter† herself in the early days) has to lift up the carrige to see her work. Another example of a understroke typebar machine is the caligraph of the 1880,the second typewriter to appear on the American market. This Caligraph #3 has a â€Å"full† keyboard- separate keys for lower- and upper-case l... Free Essays on Typwriters Free Essays on Typwriters Typewriter patents date back to 1713, and the first typewriter proven to have worked was built by Pellegrino Turri in 1808 for his blind friend Countess Carolina Fantoni da Fivizzono. Commercial production, however, began only with the â€Å"writing ball† of Danish pastor Malling Hansen (1870). This device looked rather like a pincushin. Nietzsche’s mother and sister once gave him one for Christmas. He hated it. More significant is the sholes and &Glidden Type Writer, which began production in late 1873an appeared on the American market in 1874: Christopher L. Sholes, a Milwaukee newspaperman, poet, and part-time inventor, was the main creator of this machine. The Sholes & Glidden typed only in capitol letters, and it introduced the QWERTY keyboard, which is very much with us today. The keyboard was probably designed to separate frequently- used pairs of typebars sop that the typebars would not clash and get stuck at the printing point. The S&G was a decorative machine, boasting painted flowers and decals .I looked rather like a sewing machine, as it was manufactured by the sewing machine department of the Remington arms company. For an in-depth look at this historic device , visit Darryl Rehr’s Web site â€Å" The First Typewriter.† The Sholes & Glidden had limited success, but its successor, the Remington, soon became a dominant presence in the industry. The Sholes & Glidden, like many early typewriters, is an understroke or â€Å"blind† writer: the typebars are arranged in a circular basket under the platen(the printing surface) and type on the bottem of the platen. This means that the typist( confusingly called a â€Å"typewriter† herself in the early days) has to lift up the carrige to see her work. Another example of a understroke typebar machine is the caligraph of the 1880,the second typewriter to appear on the American market. This Caligraph #3 has a â€Å"full† keyboard- separate keys for lower- and upper-case l...

Definition and Examples of Commoratio in Rhetoric

Definition and Examples of Commoratio in Rhetoric Definition Commoratio is a  rhetorical term for dwelling on a point by repeating it several times in different words. Also known as  synonymia and communio.In Shakespeares Use of the Arts of Language (1947),   Sister Miriam Joseph describes commoratio as a figure whereby one seeks to win an argument by continually coming back to ones strongest point, as Shylock does when he keeps insisting that Antonio pay the penalty and forfeit of the bond (The Merchant of Venice, 4.1.36-242). See Examples and Observations  below. Also see: EpimoneTautologyTwelve Types of Questions in Casablanca EtymologyFrom the Latin, dwelling Examples and Observations Hes passed on! This parrot is no more! He has ceased to be! Hes expired and gone to meet his maker! Hes a stiff! Bereft of life, he rests in peace! If you hadnt nailed him to the perch hed be pushing up the daisies! His metabolic processes are now history! Hes off the twig! Hes kicked the bucket, hes shuffled off his mortal coil, run down the curtain and joined the bleedin choir invisible! THIS IS AN EX-PARROT!!(John Cleese in The Dead Parrot Sketch, Monty Pythons Flying Circus)With bad grace, [Shahid] had eventually conceded that [Iqbal] had to go. And then, yesterday, most amazing thing of allhe had gone! Moved out! Vamoosed! Iqbal was out of there! Elvis had left the building! The fat lady had sung! Mandela had been freed! Shahid had has life back!(John Lanchester, Capital. W.W. Norton, 2012)He’s gone off his rocker! shouted one of the fathers, aghast, and the other parents joined in the chorus of frightened shouting.He’s crazy! they shouted.He’s balmy!He†™s nutty!He’s screwy!He’s batty!He’s dippy!He’s dotty!He’s daffy!He’s goofy!He’s beany!He’s buggy!He’s wacky!He’s loony!No, he is not! said Grandpa Joe.(Roald Dahl, Charlie and the Chocolate Factory) Brave Sir Robin ran awayBravely ran away, awayWhen danger reared its ugly headHe bravely turned his tail and fledYes, Brave Sir Robin turned aboutUndoubtedly he chickened outBravely taking to his feet,He beat a very brave retreat . . ..(Monty Python and the Holy Grail)Space is big. You just wont believe how vastly, hugely, mind- bogglingly big it is. I mean, you may think its a long way down the road to the chemists, but thats just peanuts to space.(Douglas Adams, The Hitchhikers Guide to the Galaxy)At this moment of her diving, as she is suspended in mid-jackknife, nothing happens on the East End of Long Island. Not a single nail is nailed. Not a single hedge is trimmed. Not a single bottle of Chà ¢teau Whatanamazingwine is sold. Not one compliment is paid to a tomato or an ear of corn or a peach. No one asks where the potato fields have gone. Likewise the duck farms. No Filipino housekeeper is yelled at for failing to position the fruit forks correctly. No year-round resident is p ushed aside at a farmers market. No one asks anyone else to a small dinner just for close friends or wishes there were more time to spend reading quietly on the beach away from all the big parties. No one gives kudos. Or draws raves. No one embarks on an exciting new phase of his life, or enters a third act of his life, or comments that life is a journey. No one plans a benefit dance for a fatal disease. No one lowers his voice to say Jew.Nothing moves. Nothing makes a sound. The universe lies in respectful silence as sex and commerce find their and apogee in Kathy Polite and her morning swim. For one brief moment in this day for what certainly will be the only such moment, I am at peaceall bitterness relieved, all burdens lifted from me. The wind kicks up. I bless her unaware.(Roger Rosenblatt, Lapham Rising. HarperCollins, 2006) Commoratio occurs when one remains rather long upon, and often returns to the strongest topic on which the whole case rests. . . . I have been unable to subjoin a quite appropriate example of the figure, because the topic is not isolated from the whole cause like some limb, but like blood is spread throughout the whole body of the discourse.(Rhetorica Ad Herennium, c. 90 BC) Pronunciation: ko mo RAHT see oh

Part-Time Workers

Part-Time Workers Review Theoretical Concept of Organizational Commitment The organizational commitment as a concept is extremely popular today especially in the organizational and industrial psychology. A good proportion of the studies done in the past on this subject gave the concept an attitudinal perspective, including such aspects as being ready to identify with and be loyal to the organization for which one works. The concept of attitudinal perspective has been defined as the employees effective commitment in relation to the way, in which he or she is identified and involved in the organization, for which he or she is working. Organizational commitment is also indicated by such aspects as the intention to remaining in it, internalizing and identifying with the organizational goals and values, and finally, how much one is willing to put an extra effort for the benefit of the organization. Commitment, therefore, provides a strong linkage between the employees as such and their respective organization. According to side bet theory, individual employees are only committed to the organization whenever their positions in the organizations are still intact. The theory emphasizes that the employees level of commitment is not influenced by the experience through which they are going. On the other hand, Porter and Steer, while supporting the theory, described organizational commitment as behaviour in which the organization can lock their employees. According to Conway and Briner, there are a few researches that have been done on the topic of the differences in commitment between part time employees and full time employees. However, they note that even with the many studies, there has never been any empirical study done with the main objective on the establishment of the extent and reasons behind the difference in the level of commitment between the two groups of employees. The few studies, which have been done, have combined the relationship between commitments and satisfaction with the status of work. An example of such finding is a study conducted by McGinnis and Morrow and the findings published in 1990. Conway and Briner have identified a number of scholars who have carried out research on this topic. However, they note a high level of inconsistencies in their findings. For example, studies by both Martin and Peterson in 1987 found part time workers to be more committed, while that by Lee and Johnson carried out in 1991 found out that the part time employees were less committed. On the other hand, another study by Krausz in 2000 found out that both groups of employees showed the same level of commitment towards their work. Most of these past studies are majorly criticized because of their being theoretically designed. This has made their findings presented in the form of clear differences, which are empirical in nature, in general terms. Conway and Briner note that little efforts were put by the past researchers in trying to explain the difference between the two groups. In cases where attempts to come up with the explanations were made, the researchers employed the partial inclusion and frame of reference theories, which only included part time employees partially. The argument has been that such employees spend only a small fraction of the time in their work stations, while most of their time they spend in other activities away from the organization. It is thus clear that these theories have not given part-time employees equal treatment. For example, the theory of frame of reference categorizes part time employees as having a different reference frame from the one applicable to full time employees. This notion arose in line with the belief that during comparison, part time employees will evaluate their jobs based on different groups and environmental aspects from the aspects used by those employed on a full time basis. An example has been the finding that part time employees normally put more consideration on how flexible their job is than full time employees. All these theories have, therefore, been employed in the study in a way in which they contradict one another in their explanation of the differences in the level of employees commitment and other related factors such as job satisfaction. For instance, being poor in the way one socialize has been used to judge certain employees as not being committed to their work. According to Conway and Briner, such inferences have been based on that both the partial inclusion theory and the frames of reference theory are easy to be manipulated by any researcher in their explanation of any findings concluded empirically. They further note that all the two theories have never been empirically tested, and that based on the fact that they are both not well elaborated, the mode in which they are to be operated is not clearly defined. According to them, this is the reason as to why there has been little understanding of the reasons behind the low level of commitment among part time employees and any othe r aspect related to them. Other Factors Causing the Difference in the Employees Level of Commitment Conway and Briner reported a study, in which psychological framework was used as the basis, so as to understand the reasons why those who are not employed on a full time basis are not as committed as those who are employed on a full time basis. They defined their concept as the beliefs of individuals and noted that it is normally shaped by the agreement, which an organization signs with its employees. That means it has to do with how these employees perceive the promises that they receive from the organization for which they work. Such believes, normally, make the employees have an expectation of appreciations in terms of inducements in return to the contributions they make to the company. The psychological contract has thus been viewed as a framework that can be used to explain the relationship between employers and employees which, in turn, has a significant effect on the level to which the employees will be committed to their work. According to Conway and Briner, this concept can best be applicable so as to explain the behaviours and attitudes of the employees towards their employers. This can be done based on the contents of the negotiation and how the process of negotiation itself is carried out in a certain organization. Commitment and Attitudes Conway and Briner note studies have revealed that there is a relationship between psychological contract and attitudinal differences experienced at the various workplaces. According to them, these factors affect all the employees irrespective of whether they are employed on a full time or part time basis. However, in depth analysis has revealed that those employed on a full time basis differs from those employed on a part time basis on several attitudes, which affect the level of their commitment. This means that the level of psychological contract fulfilment, which one receives, can be used to explain their attitudes, which are useful in understanding their level of commitment. The breach or fulfilment of this contract is what determines whether an employee will be committed to the organization or not. Research has shown that, in a case where the organization is keen to honour the psychological contract, the employees always exhibit a high level of fulfilment and, thus, commitment to the organization. In such a situation, the employees will not be willing to quit the organization. It is, therefore, clear that the concept of psychological contract could be particularly applicable in explaining the behaviours and attitudes that are common with employees. According to Conway and Briner, this concept is applicable even in the explanation of the behaviours of contingent employees, provided the variety of employment contract is known. Conway and Briner identified a number of reasons why part-time employees psychological contract would be different from that of the employees employed on a permanent basis. Such differences may be caused by the disparities in the promises made to each of these two groups. Normally, the extent to which this psychological contract is fulfilled differ, which is based on reasons emanating from the differences at the level of the organization, interpersonal, individual, and those related to the fact that some employees spend less time at their station of work. At the level of the organization, studies have revealed that most of the organizations treat their part-time employees in a different manner from the way in which they treat their full-time counterparts. Their contract and its fulfilment thereof are normally based on the amount and nature of work they undertake, the advancement opportunity, the benefit coverage, and the autonomy. Giving example, Conway and Briner (281) note that most of the organizations do not usually offer the same opportunities for promotion and training to the part time employees as that which they give to the full-time employees. Equally, some organizations only hire the part timers to help them whenever they are overwhelmed. They thus use them to achieve their own motives. This is likely to affect the level of commitment that an employee will have towards the organization for which he works. According to Birkelund, it is because of the difference in their career orientations, that some part timers are loosely committed to the organizations for which they work. However, she notes that some part time employees have simply not been so much committed to their places of work because of the intension of enjoying the flexibility that comes with working on a part time basis. Such employees need more time to attend other commitments that they may have outside the official assignments from the organization. This is contrary to the permanent employees who, on the other hand, have high expectations from the organizations for which they work, making them especially committed to them. Such employees normally have higher expectations of benefiting from the organization, both on short and long-term basis. Interpersonal level normally concerns with the way in which workers are treated either by their fellow workers or their supervisors. These may include practices that are understood to be illegal like stereotypes, which may also affect the level of commitment an employee may be showing towards the organization. Finally, because they are only available at the organization for a short time, the organizations may not offer part time employees more promises as is done to other employees. In fact, in many cases, some employees are not even well conversant with the promises the company has for them. This may lead such problems as related to poor communication between the employees and the organization with lack of commitment being one of them. Birkelund has noted that irrespective of the fact that the level of significance of the part time work has grown, organizations have continued to construct it negatively. This explains why many organizations have continued to exploit their employees. She warns that there is a need to shift the theoretical representation of both the part time employees and part time work. She notes that the growth of significance of part time work should be taken positively as a pluralistic, arrangement of career, and equitable work. She notes the tendency for people in the developed nations like the US and the UK to associate part time work with penalties such as inadequate benefit. She observes that the HR of many leading organizations within the developed world normally associate part time work with low wages, higher percentage workers with low skilled and low level of commitment, lack of job security, and finally lack of enough opportunities for career development. She notes the tendency of sociologists to portray part time work as secondary work while at the same time such concepts as a new subclass of workers have been used to describe those who are working on a part time basis. He also mentioned the claim by scholars like Cathrine Hakin who had argued that women who presented themselves in Europes labour market were either self made or grateful slaves. The diffidence between the two categories, according to her, depends on the level of commitment of these women to their work. Describing her concept of grateful slaves, Birkelund notes that Hakin had argued that such women who work on a part time basis in the occupations dominated by women, especially those with low pay, are normally lowly committed to their work. She, however, emphasized that the notion of viewing all part time job as disadvantageous is not correct. According to her, such claims do not have their grounds and, therefore, only works to influence the commitment of those who are seeking to render their services on a part time basis. According to her observation, various nations and organizations have improved the commitment of their part time employees by presenting cogent formulated agreements. He notes that whenever the part time workers are presented with proportionate wages and reasonable benefits, they normally show a high level of commitment just like their colleagues employed on a permanent basis. Equally, research has shown that those part time workers who are included in viable career paths have shown significant level of commitment. Birkelund urges that countries and organizations need to integrate part time work with the policies guiding the operation of the work place. She observed that this is already happening in the majority of the European countries where the part time jobs is already being supplied as a standard work. Those working on a part time basis in these nations, therefore, enjoy reduced working hours, proportionate benefits and wages as well as full protection of their employment. She argued that this could be the reasons behind the findings that there is a high level of commitment among the part timers in the European nations, in comparison to the c ases with the US countries. It is thus clear that there are a number of other factors besides an employee being a full time or part time employee, which affects the level to which an employee will be committed to his work irrespective of whether they work on a part time or full time basis. In summary, the factors include the incorporation of part time work as a standard form of employment within the organizational policy, opportunities for career progression, benefit coverage and equitable remuneration among other kinds of social protection offered by the organizations (Birkelund, 11). Methodology In its philosophical approach, the study employed a mixture of critical realism and interpretivism. This was based on the understanding that it is almost impossible to have a research question in this study addressed entirely by the philosophical approach. The critical realism fits the study, since there are general assumptions that have been made regarding the relationship between the commitment of part time workers and their commitment in the work place. However, because the reason behind such an allegation is not yet established, there would be a need for an independent study involving all he stakeholders to help ascertain the claim. An interpretive would, therefore, help in establishing clear links between these variables. This means that the study would be able to find out and explain the reasons for the connections between part time workers and the allegations put against them. The study also takes into account the additional factors that affect the commitment of workers like the conditions the workers are subjected to and terms of employment. Such concepts are normally understood via interpretive means. This was made possible, since the approach makes an assumption that the reality cannot always be observed and is, therefore, determined by the relationship between the employer, especially the HR and the part time and full time workers. The study employed a mixture of deductive and inductive approaches. This enabled to test the existing arguments derived from the theory of the frame of reference and that of partial inclusion. The research was also based on the already known facts and the experiences of the researcher both in management and the applied, conceptual model. However, to enable the researcher succeed in generating new knowledge on the topic, the study employed the use of semi-structured interview, which is understood as being more inductive. On the strategy of the research, the study employed the use of a case study. This enabled the researcher to obtain and present holistic findings on the subject, in question. The strategy, for example, allowed a research around people, structures, and even policies. This means that the study is likely to succeed in demonstrating how the commitment of employees can be affected or complemented through the provision of favourable terms. This was made possible through employing the use of semi-structured interviews. The method was complimented by the use of the qualitative questionnaire. The two methods were considered viable since they would also help the researcher to save time, hence, enabling working within the budgeted time frame. The one on one interview was also conducted with a number of the relevant HR specialist. Overall, the two methods helped the researcher to have a better understanding of perspectives and views of the part time employees, full time employees and those of the HR managers towards difference in the level of commitments between the two categories of employees. This way, the researcher was be able to know whether the claims that part time employees are less committed to their work than the full time employees is anything to go by or mere claims having understood the conditions under which the part time employees work. This also allowed the researcher to make appropriate recommendations and conclusions which will not only be helpful to Hilton International Hotel but the entire HR profession. The case study was a holistic two cases study with two branches of the Hilton International Hotel which were the units of analysis within the United Kingdom. Thus, the research considered 100 employees with 50 employees being selected from each hotel. Out of the 50, 25 were part time employees with the other 25 full time employees. That means that each of the two hotels had 25 of their full time employees and 25 of their part time employees participating in the research. Stratified sampling method was used in selecting the participants. This enabled the employees from the two organizations to be divided into either full time or part time employee groups. After coming up with the two groups, the 25 representatives from each group were then chosen, based the on random sampling method to give each member the same probability of being considered. The use of case study enabled the researcher to carry out the study from a number of stakeholder perspectives. This means that besides interviewing the HR specialists under which the issues affecting the employees directly lies, the senior manager who is viewed to have a knowledge and influence on the formulation of the organizational policies was also interviewed on the one on one basis. The study also considered probing part time employees, so as to find out additional reasons why they would be less committed to their work places. It is also worth noting that considering two different branches enabled the researcher to compare the findings obtained from different cases. This may give additional insights like the possibility of the attitudes of the part time employees being determined by circumstances surrounding their work. Choice and Limitations of the Research Methods It is, therefore, obvious that this study employed the use of four methods. First, the semi-structured interviews, which were used to conduct the focus group study with both the full time employees and the part time employees from the two hotels. Second was the one on one interview, which helped in obtaining information from both the HR manager dealing directly with the issues of employees and the senior HR managers of the selected branches. There was also an extensive review of the job descriptions of both the part time employees and the full time employees. Finally, the study considered reviewing the organizational and the national, corporate HR documents. Of much interest were the documented policies, systems, and structures governing the relationship between the part time employees and their employers. This enabled the researcher to get insights on the conditions under which both the full time employees and the part time employees work. The semi-structured interview was chosen because it allows the researcher to seek clarifications from the interviewee. The focus group was also considered since it would enable the participants to discuss freely giving close insights about the topic of discussion. On the other hand, the one on one interview with senior HR managers and the HR managers helped give more insights on what was already known about the topic and the answers obtained from the focus group discussions with the full time employees and the part time employees. The only limitation, which could be common to these methods, would be the researcher taking more time than was allocated in the timetable. However, these methods were, therefore, highly appropriate for this research. Data Analysis and Ethical Issues The participants who were interviewed had no problem with having the researcher jotting short hand notes on the issues that they discussed. In addition, the researcher sought the permission of the participants to have the proceedings recorded. More attention was paid on the sections of the interview that were essential for answering the research questions which he transcribed. This enabled the researcher to have easy task during the data analysis considering that he transferred all the data and stored them safely in a personal computer. He then erased the data from the temporary storage digital device as was agreed with the participants. Concerning the ethical considerations, the researcher secured permissions from the management of the two hotels and that of the participants long before the actual study. Moreover, the participants voices were only recorded only after their consent was secured.