Enterprise, Business Growth and Size

Entrepreneur

Entrepreneur

A person who organizes, operates, and takes risks for a new business venture. Some characteristics include Risk taking, creativity, self-confidence, etc.

Business plan

A document containing the objectives and important details about the operations, finance, and owners of a new business.

Executive summary

A brief summary of the key features of the business and the business plan.

The market

Describing the market research, prospective customers, and competitors.

Advertising and promotion

How the business will be advertised to potential customers and estimated costs of marketing.

Premises and equipment

Details of planning regulations, costs of premises, and the need for equipment and buildings.

Business organization

The legal structure of the business, such as sole trader, partnership, company, or cooperative.

Costs

The cost of producing the product or service and the proposed prices.

Finance

The capital from savings and borrowings to start and operate the business.

Cash flow

Forecasted income and expenditures over the first year.

Expansion

A brief explanation of future plans for growth.

Government support for business startups

Assistance provided by the government to new businesses.

Startup

A company in the early stages of development, typically started by 1-3 founders.

Horizontal merger/integration

When one firm merges with or takes over another in the same industry and stage of production.

Vertical merger/integration

When one firm merges with or takes over another in the same industry but at a different stage of production.

Conglomerate merger/integration

When one firm merges with or takes over a firm in a completely different industry.

Difficulties of growth

Challenges that arise as a business expands, such as controlling staff, lack of funds, expertise, and diseconomies of scale.

Business size

The measurement of a business's magnitude, which can be determined by the number of employees, value of output, or value of capital employed.

Reasons why businesses stay small

Factors that contribute to businesses remaining small, such as the type of industry, market size, and owners' objectives.

Reasons why businesses fail

Common causes of business failure, including poor management, over-expansion, failure to plan for change, and poor financial management.

New businesses at greater risk of failure

Factors that make new businesses more susceptible to failure, such as lack of experience, being new to the market, low sales, and limited financial resources.