Janet owns a small farm and her husband works in a neighboring mine, but despite their
employment, they are unable to afford their children's schooling. Janet chooses to try her hand at
self-employment by raising hens for sale. She is capable of doing so, and her uncle provides her
with a $400 loan to begin the business. However, before she purchases the chicks, she learns that
there is an enormous demand for sunflower oil due to its scarcity on the market. Traders are
knocking on local farmers' homes, pleading with them to produce it. Janet modifies her business
plan and launches an oil pressing enterprise, believing she will earn a lot more money pressing
sunflower seeds for oil. Janet has never cultivated a huge number of sunflowers. She uses the entire
loan amount to purchase seeds, fertilizer, and oil pressing equipment. Due to the fact that she

utilizes the majority of the family acreage to produce sunflowers, there is less space available for
growing maize and vegetables for the family's use. Her children become ill as a result of the
fertilizer's toxins. She is now required to purchase additional food for the household. Because
processing the oil requires a great deal of time and work, Janet must hire assistance. Numerous
other farmers have begun producing sunflower seeds as well. As a result, by the time her oil is
ready to sale, the market has already been saturated, and Janet is unable to find a buyer. Janet is
forced to sell the oil at a loss to a local business in order to cover her losses. As a result, Janet earns
a pittance and is unable to repay the debt.

Guide Question: What is wrong with Janet’s business idea? Why?
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