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Business
A decision-making company or organization aiming to make a profit, involving the exchange of goods and services to satisfy the needs and wants of individuals, organizations, or governments.
Entreprise
A group of people working together to achieve an objective, typically with a profit motive.
Inputs in Business
The main factors necessary for a business to operate, including capital (money and equipment), land (space and resources), labor (physical and mental effort), and entrepreneurship (management, organization, and planning).
Business Functions
Human resources (managing the workforce), finance and accounts (managing money and assets), marketing (identifying and satisfying consumer needs), and operations (managing production processes).
Business Sectors
Primary (resource extraction), secondary (manufacturing), tertiary (services and retail), and quaternary (intellectual activities).
Sectoral Change
A shift in a country's economic structure, such as from primary to secondary (industrialization) or from secondary to tertiary (service-based economy).
Potential Implications:
increased job opportunties
creater focus on customer service
products are more accesible
Entrepreneurship
The process of starting a business, typically involving profit, where the entrepreneur plans, organizes and manages a business taking on financial risks.
Intrapreneurship
Similar to entrepreneurship, but within an existing organization, where an employee uses company resources to undertake projects with lower risk and is rewarded with a paycheck.
Reasons for Starting a Business
Profit, autonomy, challenge, flexible hours
Business Plan
A report outlining a business's aims, objectives, operations, and financial details, used as a planning tool and for attracting investors or obtaining loans.
Elements of a Business Plan
Business details, product information, market analysis, financial projections, personnel, and marketing strategies.
Private Sector
Operated by private individuals or entities driven by the goal of making a profit, consisting of businesses owned, financed, and controlled by private individuals and businesses
Public Sector
Provided by goverment/authorities where goods and services are provided to serve a community (ex. healthcare, education)
Sole Trader
A business that is entirely owned and controlled by one individual, who assumes all profits and liabilities.
Partnership
A company managed by two or more individuals who share responsibilities, contribute resources, and may have "silent" partners who provide capital but don't make decisions.
Private Limited Company (LTD)
A company whose shareholders are limited to family, friends, or business partners, and whose shares cannot be publicly traded.
Public Limited Company (PLC)
A company whose shares are publicly traded on stock exchanges, allowing anyone to buy and sell shares, with a legal requirement to publish financial information.
Cooperatives
Organizations jointly owned and operated by their members, who share profits and benefits.
Microfinance Providers
Entities that offer loan services to individuals or groups without access to traditional banking services, often serving low-income or unemployed individuals.
Public-Private Partnerships (PPP)
Collaborations where public corporations are sold off or transferred to the private sector, often with the aim of improving efficiency and utilizing private sector skills.
Non-Profit Businesses
Organizations that operate without a profit motive, with the goal of benefiting the public, either through operational or advocacy activities.
Non-Profit Organizations (NPOs) vs. Non-Government Organizations (NGOs)
Definition:
NPOs do not distribute funds to owners and aim to raise funds for their beneficiaries (e.g., service organizations or charities).
NGOs are private sector entities engaged in humanitarian or educational projects (e.g., WWF, UNESCO, Red Cross).
Charities
Non-profit organizations exempt from taxes, using their resources for charitable purposes, often raising funds to address issues like poverty or environmental problems.
Human Resources
Recruitment, wages, communication, motivation
Finance
Recording and reporting of financial documentation to keep stakeholder's in check with company's financial position
Marketing
Promotion, advertisement
Operations
Managing product processes, research & development, delivery, stock management
Primary
Extraction, harvesting, conversion of natural resources. Large output in LEDC, low value added
Secondary
Manufacturing, Construction of clothes, manufacturers, brewery etc.
Tertiary
Providing services and retail. Transportation, restaurants, banking
Quaternary
Knowledge based and innovation. Research and deevelopment, education
How to start a business
1. Entrepreneur finds niche markets when small business can compete.
2. Writing a business plan
3. Obtain start-up capital
4. Register
5. Market yourself and your products
Problems new businesses may face
1. lack of finance, cash-flow problems
2. lack of manpower
3. high production costs / limited resources
4. legalities in some countries
Sole Trader (pros and cons)
Pros:
- all profits to sole owner
- fast decision making
- no corporate tax
- little legalities to set-up
Cons:
- unlimited liability
-limited sources of finance
- limited economies of scale
Partnership (pros and cons)
Pros:
- financial strength
- specialization and division of labour
- unlimited liability but spread
Cons:
- slower decision making
-disagreement/conflict
- unlimited liability
Privately Held Company (pros and cons)
Pros:
- limited liability
- high capital, higher expansion capacity
Cons:
- more legal restrictions
- corporate tax
Publicly Held Company (pros and cons)
Pros:
- limited liability
- even more capital can be raised, more expansion
Cons:
- continuity after death
- control is divided
- corporate tax
Co-operatives (pros and cons)
Pros:
- shareholders run the organization, motivation
- workload is spread out
- equal voting rights among shareholders
Cons:
- very slow decision making
- profits split among members
Microfinance Providers (pros and cons)
Pros:
- job creation
- social well-being
Cons:
- limited finance
- limited eligibility
Public Private Partnerships (pros and cons)
Pros:
- more productive in proving goods
Cons:
- government must subsidize when costs increase for the business
- conflict between public and private sector interests
Charities (pros and cons)
Pros:
- social benefits
- tax exemption
- public recognition
Cons:
- bureaucracy
- limited sources of finance
- charities must disclose all information to public (to avoid charity fraud)
Division of Labour
The specialisation of workers on specific tasks in the production process
Capital Goods
Physical goods that are used by an industry to aid in the production of other goods and services, such as machines and commercial vehicles.
Capital
The money required to fund a business's day-to-day operations and to bankroll its expansion for the future.
ex. land, entrepreneurship, capital goods
Note 
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