Enterprise, Business growth and Size

Charcteristics of Entrepreneur

• Creative

• Descisive

• Risk Taker

• Inititative

• Self confidence

• Determined

Overview

Basic information about the business and entreprenuer

Objectives

The main aims and goals of the business

Market

The entire of market of the product (Size, Competition, Demand)

Marketing

The name and price of the product and how the business intends to attract customers

Finance

The cost of producing the product and the expected sales, to help raise funds for the business

Resources

The machinery, equipment and premises required to produce the goods/services

People

The expected number, skills, experience required from a employee

Operations

The entire process of producing the product

Importance of Business Plan

• Helps raise funds

• Sets clear goals and aims of the business

• Acts as a checklist

• Highlights potential risks

• Informed decision making

Why and How goverments support startups

Why

• Increased Job Creation

• Increased Output

• May turn into large businesses

• Increased competition

• Provide specialist goods and services

How

• Grants or Low interest loans

• Free or Low cost premises

• Free or Low cost training

• Business fairs for entreprenuers

• Advice from specialists

• Low interest taxes

Methods of Measuring Business Size

• Value of Capital employed

• Number of employees

• Value of Sales

• Volume of sales

Why Owners want to Grow business

• Increased Profit

• increased Market share

• Spreads risk

• Spreads average cost

Internal Growth

• Increased Output

• New markets

• New Products

Reduced risks/Easier to Manage Higher control Low costs
Slower Limit of expansion

External Growth

• Horizontal Intergretation

• Vertical Intergretation

Advantages

• Quicker growth

• Increased skills, experience helping increase output

• Reduced average costs

• Reduce competition

Disadvantages

• More expensive

• Less control and harder to merge

Problems linked to business growth

• Reduced motivation

• Poor communication

• Poor coordination

• Poor control

Why Business stay small

• Owners choice

• Availability of Funds

• Market

• Type of Product

Why businesses fail

• Management skills

• FInance

• Demand for product

• Suitable Product

• Economic state

• Competition