BUSINESS SECTION 3

Entrepreneur

A person with vision, creativity, and the ability to identify business opportunities, risks, and resources needed to start and run a business.

Entrepreneurship

The process of recognizing successful business opportunities, managing risks, and acquiring resources to establish and operate a profitable business.

Business Plan

A detailed outline of steps required to start and manage a business, including a vision and mission statement.

Feasibility Study

Research conducted to determine the viability and potential success of a business project by assessing strengths, weaknesses, costs, and financing sources.

Collateral

An asset provided as security for a loan, which the lender can claim if the borrower fails to repay.

Types of collateral

Property, Stocks, Bonds, Money, Life insurance, Appliances, Motor Vehicles

Primary Research

Collection of original data directly from the source, such as surveys, interviews, and artifacts.

Secondary Research

Utilization of existing data collected by others for different purposes, like books, articles, and documentaries.

Government Regulations

Rules set by different levels of government, including local, regional, and global, to govern business operations.

Monetary Policy

Management of interest rates and money supply by the government to influence the economy.

Fiscal Policy

Government actions related to taxation and spending to impact the overall demand in the economy.

characteristics of entrepreneur

Goal oriented, risk taker, innovative, Creative, flexible, persistent

Reasons why someone would start a business

Self Fulfilment, Increased control, self actualisation, increased income, financial independence

Self fulfilment (relating to reasons why a person would want to start a business)

involves deriving happiness from a passion such as surfing and making it into a business venture

increased control (relating to reasons why a person would want to start a business)

entrepreneurs value autonomy and citing benefits, such as freedom in decision making.

STEPS TO START A BUSINESS (in order)

Conceptualization, research, identification of resources, create a business plan, acquisition of funds, operation

Importance of a business plan

it serves as a guide THROUGH EACH STAGE OF STARTING AND MANAGING YOUR BUSINESS

Elements of a business plan

Executive summary, operational plan, business opportunity, marketing plan, financial forecast

Executive summary

A brief summary, of the details in the rest of the plan, at the start of the business plan. It is to be written last.

Operational plan

details of the business including its structure, aims, objectives and operational details.

Business Opportunity

a description of the product or service including what makes the product unique.

Marketing Plan

a description of potential customer and competitors- size of the market

Financial Forecast

Part that includes the sources of finance, cash flow, profit and loss forecasts

FACTORS THAT DETERMINE THE LOCATION OF A BUSINESS

availability of raw materials and supplies, health facilities, Geographical factors, Infrastructure, Power and Water, Telecommunications, Labour Supply, Government regulation

availability of raw materials and supplies(in relation to location)

Some manufacturing business use heavy, bulky raw materials that are expensive to transport so it makes sense to locate the business closer to their source to cut costs.

Health Facilities (in relation to location)

important especially for businesses that are more likely to have accidents and injuries on site so in the event of accident a health facility is nearby to further the chance of survival as well as lessen the costs it would take to transport an injured individual to a hospital.