Principles of Business – Grade 10

Sources of Information for Conducting Research into the Establishment of Businesses

What is information?

This is facts provided or learned about something or someone.

Methods of Data Collection

Information can be collected from primary or secondary sources and thus will be primary or

secondary data.

Secondary Data - All data not obtained first hand are secondary data, in other words it is

information that is already available. This type of data is useful for backing up and supporting

primary data and is often easy to obtain. Secondary data can be found on the internet, in

government departments or agencies, business magazines, newspapers, public libraries etc.

Primary Data - This involves the researcher personally collecting the data or arranged for its

collection from scratch. This data is fresh and not someone else’s information. Examples of

primary data include: surveys, observations, questionnaires, interviews, experiments.

 Surveys - This is very important in market research and includes the use of questionnaires,

interviews and focus groups in order to collect specific data. In a focus group a set of people

is invited to meet with the researcher to discuss an issue. Sampling is a regular strategy in

surveys and this is selecting a group instead of interviewing all individuals relevant to the

topic.

 Questionnaires – It is a set of printed or written questions with options sometimes being

provided. These can be used along with an interview or separately. Similar questions may be

used for questionnaires and interviews. Therefore, the guidelines given for preparing and

using questionnaires can also be used for interviews.

Tips on How to Prepare a Questionnaire

An introduction should be prepared to introduce you as well as to state the following:

 The purpose for the questions

 The length of time that the questionnaire should take to complete.

  Leave adequate space for answers.

 Include brief clear instructions.

 Number the items.

 Questions should be in logical order; simple questions first.

 Questions should be easy to complete.

 Questions may be structured as:

1. Closed-ended- Specific responses are given. e.g. How many workers are employed in this

institution? [ ] 0-4 [ ] 5-8 [ ] 9-12

2. Open-ended- Respondents are slowed to freely express and give information. e.g. What are the

strategies used in promoting products? .

 Interviews – It is a structured face to face conversation where questions are asked and

answered in order to obtain information. These may be conducted with managers, employees,

customers or other appropriate individuals of businesses, who are likely to provide you with

information. When conducting an interview, you need to:

 Take a letter verifying the purpose of the interview and identification.

 Be respectful and follow instructions given.

 Write clear accurate information and it is better to have too much than too little info.

 Experiments - Research method for testing different assumptions (hypotheses) by trial and

error under conditions constructed and controlled by the researcher. During the experiment,

one or more conditions (called independent variables) are allowed to change in an organized

manner and the effects of these changes on associated conditions (called dependent variables)

is measured, recorded, validated, and analyzed for arriving at a conclusion.

 Observations- This is the process of closely observing or monitoring something or someone.

These may have to be conducted in addition to interviews and questionnaires. If you use this

method, you may need to ask to see documents from which you may garner information.

Documents may include: Mission Statements, Memoranda of Association, Articles of

Association, Profit and loss accounts, Balance sheets, Organization charts and Distribution

channels.