Factors to consider when locating a business for industrialization

Mr. Kilanko want to go into soap Making, advice him on the factors to consider when locating his business

Things to consider when locating a business

1. The Availability of Raw materials: The raw materials that will be used in the production of goods and services which is the main objectives of the organization e.g limestone use in the production of cement at the Ewekoro cement factory.
2. The Availability Of Ready-made market For The Commodity Produce: Goods produce must be sold in the available market. If this is not possible then the goods will be wasted.
3. The Availability Of Power Supply: It’s assume that a company will require electricity in the production of the goods, therefore it’s necessary to have on ground source of power supply so as to have a smooth and efficient processing of goods.
4. Availability Of Labour Supply: The required labour required in the production of the goods will influence the location of industries. There should be supply of labour to meet the demand of labour for the industries.
5. Availability Of Suitable Land: Enterpreneur requires access to build and large expanse of land for the use of the industries. This depends on the kind of entrepreneur base and the capital invested in the business.
6. Effective System Of Transportation: The means of transporting raw materials and finished goods should be readily available to create a means of getting the goods to the market. The means of transporting raw materials to the site where the production takes place is also important.
7. Local and ethnic consideration: Some entrepreneurs build industries in their hometown or among their own people so as to help develop their areas e.g Abiola Odukola tire company.
8. Political factor: The government may decide to site industries in some places for political reasons.This is to gain support for the government or for equal distribution of government facilities.
9. Climate consideration: The nature of business in a place is dictated by the geographical and climate situation of such areas. Rubber plantation can only be done in the south and not in the north
10. Nearness to other industries: Some industries use all or some of the by product of another industry. So they try to site themselves in the same areas for easy access to the by product.