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6. (i) Explain the term indigenous firm - Leaving Cert Business - Question 6 - 2020
Question 6
6. (i) Explain the term indigenous firm. An indigenous firm is an Irish/native locally based business that has been established and is owned/managed by Irish reside... show full transcript
Worked Solution & Example Answer:6. (i) Explain the term indigenous firm - Leaving Cert Business - Question 6 - 2020
Step 1
Explain the term indigenous firm.
Answer
An indigenous firm is defined as a business that is established and managed by residents of a specific country, in this case, Ireland. These firms provide local goods and services, committing to the local economy through their ownership and operations. The owners are directly invested in the firm's success and have a vested interest in its ongoing development and sustainability. Companies such as Dough Bros, Eason’s, and SuperValu serve as prime examples of such businesses that are rooted in the Irish community.
Step 2
Outline one challenge facing indigenous firms.
Answer
One significant challenge confronting Irish indigenous firms is the decrease in sales due to the Covid-19 pandemic. The pandemic has disrupted normal business operations, leading to a fall in customer traffic and revenue. As a result, these firms are grappling with issues such as meeting financial obligations, maintaining staff levels during downturns, and developing strategies to recover sales. This situation emphasizes the need for businesses to adapt and innovate to survive amidst unprecedented circumstances.