Business Management and Small Scale Business in Botswana

Vocabulary flashcards covering key business management definitions, business types, small-scale operations in Botswana, resources, buying strategies, business planning, customer service, and business regulations.

Business

Any legal activity carried out by an individual or organisation with the primary view of making a profit by providing goods or services that satisfy the needs and wants of consumers.

Management

A problem-solving and decision-making activity that involves planning, organising, leading, and controlling resources (human, financial, and physical) in order to achieve the goals and objectives of a business efficiently and effectively.

Business Management

The process of coordinating and overseeing all the activities, resources, and people within a business organisation so that it operates efficiently, meets its objectives, and generates profit.

Consumers

The people who buy and use the goods or services offered.

Consumer Needs

The wants and requirements that drive consumers to purchase goods or services.

Enterprise

A business or organisation set up to satisfy consumer needs.

Profit

The financial gain made when revenue earned exceeds costs incurred.

Commercial Business

A business primarily engaged in the buying and selling of goods or services for profit, acting as the link between producers and consumers.

Wholesale Businesses

Businesses that buy goods in large quantities from manufacturers and sell them in smaller quantities to retailers.

Hospitality Business

A business providing services related to accommodation, food and beverage, leisure, and entertainment to guests, travellers, and the general public.

Manufacturing Business

A business that transforms raw materials or components into finished goods using machinery, labour, and technology.

Service Business

A business that provides intangible products, where the output is an action, skill, or expertise performed for the benefit of the customer.

Agricultural Business

A business involving the production of crops, livestock, or other farm-related products for sale.

Financial Services Business

Businesses providing financial products and services such as banking, insurance, investment, and credit to individuals and organisations.

Home management-related businesses

Businesses that apply knowledge and skills linked to home management in a commercial setting, providing goods and services related to food, clothing, shelter, interior design, and domestic care.

Small scale business

A business that employs fewer people (approximately $5-20$ employees) and has less capital compared to a large business.

Mobile Shops

Traders who take their goods to customers using vans, caravans, trucks, or bicycles to reach isolated areas and provide door-to-door service.

Discount Shops

Retail outlets operating on the principle of low markup but high turnover, often selling branded durable goods at prices up to $15\%$ below the normal selling price.

Itinerant Traders

Traders who move from place to place carrying a small selection of goods, often operating informally in public spaces like bus stops or taxi parks.

Hawkers

Traders who sell goods by moving from one house to another in residential areas, providing personal attention and maintaining close contact with regular buyers.

Street Vendors

Traders operating from stalls or makeshift structures in public spaces such as bus and taxi parks or open market areas.

Sole Trader

A business owned and run by one person who provides all the capital, receives all the profit, and bears all financial risk and personal liability for debts.

Human Resources

The people involved in a business and the skills, knowledge, and expertise they bring to the organisation.

Technical Competence

The technical knowledge and skills required to manufacture a product or render a service to a good standard.

Financial Competence

The ability to plan, acquire, and manage money, including budgeting, record-keeping, and understanding cash flow and profit and loss.

Marketing Competence

The ability to find a market niche, identify target customers, design appealing products, and understand pricing and promotional methods.

Human Relations Competence

The ability to manage employees effectively by motivating, directing, and maintaining healthy interpersonal relationships to build teamwork.

Managerial Competence

The ability to plan, organise, coordinate, and control all business activities and administration.

Start-up Capital

The initial amount of money required to establish and start a new business.

Working Capital

The money required to keep a business running on a day-to-day basis.

Raw Materials

The physical inputs used to manufacture a finished product.

Stock

The goods purchased for resale in a retail business.

Market Pull

A factor referring to the location of a business near where potential customers naturally gather, such as malls, schools, or busy taxi ranks.

Unit Buying

The practice of purchasing goods in small quantities, such as a single item, usually at full retail price based on immediate need.

Bulk Buying

The purchase of goods in large quantities, usually at a reduced price per unit, from a wholesaler or supplier.

Business Plan

A formal written document describing a business idea, goals, strategies, and financial projections for a period of $1-5$ years.

Mission Statement

A brief statement included in a business plan that defines the purpose and values of the business.

Break-even Analysis

A financial assessment in a business plan showing when the business expects to start making a profit.

Service

Any intangible activity, benefit, or action performed by one party for another that satisfies a need or want without resulting in ownership.

Customer Service

The assistance, advice, and support provided to customers before, during, and after a purchase to ensure satisfaction and build loyalty.

Weights and Measures Act

A law providing for the calibration of weighing and measuring equipment to protect consumers from being short-changed in mass or volume.

Price Control Act

A law that controls the prices of certain essential goods and services to protect consumers from price exploitation.

Standards Act

A law establishing set standards of practice and quality for goods and services, administered by the Botswana Bureau of Standards (BOBS).

Public Health Act

A law ensuring business premises are hygienic, requiring food handlers to hold valid health certificates, and protecting the public from infectious diseases.

Food Control Act

A law ensuring the safety of food produced and sold in Botswana by prohibiting the sale of adulterated, contaminated, or mislabelled food.

Trade and Liquor Act

A law regulating fair trading methods and controlling the sale of alcohol, including licensing and age restrictions of $18+$.

Competition Policy

A legislative framework promoting fair competition by prohibiting cartels and monopolies.

Consumer Protection Act

A law protecting consumers from unfair, deceptive, or exploitative business practices such as false advertising and misleading product descriptions.

Waste Management Act

A law outlining systems for managing controlled waste to prevent harm to life and the environment from improper disposal.

Marketing Act

A law regulating the promotion of goods and services to ensure advertising is fair, honest, and not misleading.

Employment Act

A law regulating the relationship between employers and employees, setting minimum wages and working conditions.