Research On Development Of Lesotho Large Enterprises

The primary purpose is to determine the extent at which perceived opportunities andconstraints affecting Lesotho large enterprises in the private sector(key characteristics oflarge enterprises and key challenges).In eliciting primary data, thirty(30)questionnaires are administered and personalinterviews are made to thirty(30)large enterprises for the purpose of identifying keysocio-economic factors that determine the operation of the private sector business. Datafrom the study is analyzed by the use of demographic and statistical approach. Thestatistical approach constitutes the use of tables, charts and percentages for the analysisof key indicators such as： ownership, business activities, rent registration etc.The results indicate that：(1)Formation of private enterprises-the failure orsuccess of businesses depends on the initial formation of a business;(2)Socio-culturalfactor-tradition, custom, and language barriers had been long ago an obstacle for foreigninvestment in Africa, specifically Lesotho;(3)Regional trade factor-private sectorinvestment had been a developmental vehicle in stimulating regional trade, but yetfraught with difficulties and challenges that led to the variations of both imports andexports of goods and services;(4)Tax registration factor-imposing high indirect tax toprivate enterprises was indeed an obstacle in the sustainability and expansion in theprivate sector investment.Results show that wages, poor working conditions, high training costs, and politicalconnections, these factors have huge impact on the skill shortages problem in Lesothoenterprises.are some of factors that contribute in the problem of skill shortages inLesotho enterprises.The interaction effects between regional integration and diversity of trade costsshows, for instance, cost to export, time to export, customs procedures, financial depthand institutional and rule biases against exports are a natural framework for explainingthe clear high hazard rate for Lesotho exports.Finally, in every business sector there is a set of variables that can influence theperformance and competitiveness of business. The location of a company, flexibility of goods/services offered and accessibility to markets are equally important when makingdecision for companies.