Setting Up A New Business In Africa – Impact Of Translation Services

South Africa has a prosperous business front. The introduction of certified translation services has slowly brought upon a revolution in the South African business industry. According to the New Companies Act introduced in the country in 2011, the three most common business structures now allowed here are sole proprietor, close corporation and private company.

Sole proprietor simply means the “sole trader” wherein you start trading for yourself. This is by far the simplest form of a business setup and does not require much effort on the part of the entrepreneur. The business is run by one single individual only and there are no legal distinctions. Close Corporation (known as CC) on the other hand could have been a good opportunity for investment but for new starters in South Africa, this is no longer an option. No new Close Corporations are being registered in the country.

For beginning entrepreneurs wishing to start their businesses in South Africa, private company setup is by far the best option. It involves the creation of a new identity of the person or the company in order to commence trading or business. Trading through an established company gives you an upper hand. It provides you with a better professional image while simultaneously running things in a proper way and following the prescribed business laws of the country. All you need to do to start a new business is to register yourself with the South African government for income tax and other necessary licensing.

However, there are some common problems in the initiation of a business setup that new entrepreneurs are faced with in South Africa. Doing business in Africa has its own form of hurdles and challenges. For instance, in South Africa, the greatest problem for business entrepreneurs is a lack of electricity. Another problem faced in South Africa by foreign investors is the barrier of communication due to language complexities. Most of the hurdles faced by investors are language related. Although English is widely spoken in the country, the majority of South African people are not adequately proficient in conversing in the language and businesses must rely on professional translation services such as those offered by The Marketing Analysts.

The solution to this problem is the establishment of more legal translation services all around the African country to facilitate the communication between foreign and local investors. These translation services will greatly help to promote the business sector in Africa. Providing better translation services will further improve business communication in South Africa.

Early Research on the Concept of Human Capital

Human capital is a relatively new term, which is used differently in literature. That is why most Chicago Translation workers think that it is useful to clarify its meaning.

When discussing the concept of human capital and its development, we should mention those famous names in the history of economic doctrines such as William Petty, Adam Smith, Jean Baptiste Say, Irving Fisher and others.

For Petty (1691) labor is the “father of wealth,” thus it should be included in any accounting of national wealth. Therefore Petty tried to develop a methodology for monetary valuation of human capital. His method determined the value of human capital through capitalization of individual cash flow of earnings. As a percentage of capitalization here, he used the market interest rate.

A hundred and seventy-two years after Petty, W.Farrsuggested the first scientifically developed and grounded procedure for determining the capital value of an individual. He advocated replacing the English income tax system with a system of taxation of wealth (in wealth he includes the capitalised value of future expected earnings capacity). This idea requires calculating the present value of future net income of an individual (future expected income minus personal costs of living), taking into account the statistically determined average life expectancy.

A few decades later, Engel  developed a procedure for determining the monetary value of an individual, based on the “cost of production” approach. In an attempt to elaborate Petty’s method further, he modified it to account for the limited number of active labour years of an individual.

In 1867 Wittsteincombined Farr’s “capitalized-earnings” with Engel’s “cost of production” approaches as a methodology for assessing the value of human capital. As a result he arrived at the conclusion that the earnings of an individual throughout his lifetime are equal to the living and education expenses.

In conclusion, Philadelphia Translation Services workers say that historically two basic methods for assessing the value of man can be outlined: the cost of production method and the capitalized-earnings method. The capitalized-earnings method accounts for the present value of future earnings capacity.