Entrepreneurship and Business Development Notes

Entrepreneurship Overview

Entrepreneurship is characterized as a dynamic process that involves identifying and managing a new business venture. It is underscored as crucial for fostering community development and economic stability. Despite the challenges that come with running a business, the potential benefits include significant personal freedom and financial opportunities.

Business Product Selection

As part of a group activity, teams are to select one product from the following list to investigate and develop a business plan:

  • Breakfast cereal
  • Foot-massager machine
  • Grilled Chicken (Shisanyama)
  • Water Filter
  • Liquid Cleaner
  • Maintain Weight Supplements
  • Cleaning services
  • Plumbing services
1.1 Product Naming

Each group must propose a name for their chosen product.

  • Considerations for Naming:
    • Relevance to the product's purpose.
    • Appeal to target customers.
    • Memorable and easy to pronounce.
    • Unique from competitors.
  • Groups should explain the rationale behind their chosen name in a clear and concise manner.
1.2 Product Classification

Groups must classify their product according to its nature.

  • Types of Product Classifications:
    • Consumer Products (goods purchased for personal consumption)
    • Industrial Products (goods used for further manufacturing or business operations)
  • Groups should provide a brief explanation supporting their classification choice based on the intended market and usability of the product.
1.3 Business Location Requirements

Discussion on the premises or space needed for business operations based on the selected type of business.

  • Factors to Consider:
    • Location accessibility for customers.
    • Space requirements related to production or service delivery.
    • Zoning regulations applicable to the type of business.
1.4 Demographic Segmentation

Design a demographic segmentation using the specified criteria.

  • Criteria Include:
    • Age: Identify target age groups.
    • Income: Segmentation based on income level and purchasing power.
    • Gender: Target market gender considerations.
    • Education: Educational qualifications that may influence product choice.
    • Occupation: Types of professions relevant to the customer base.
    • Location: Geographic areas where the product will be marketed and sold.
1.5 Inventory Control System

Recommendations for an efficient inventory control system specific to the chosen product.

  • Potential Systems Generally Include:
    • Just-In-Time (JIT) inventory management
    • ABC analysis for categorizing stock
    • Use of inventory management software to track inventory levels.
1.6 Supplier Criteria

Five criteria that groups should consider when selecting a supplier for their business.

  • Example Criteria:
    • Reliability and track record of the supplier.
    • Quality of products offered.
    • Cost and pricing agreements.
    • Payment terms and conditions.
    • Proximity to the business to reduce transportation costs.
1.7 Employment Contract for Bookkeeper

An employment contract should be created for Ms. Layla Gumede, who has been selected for the Bookkeeper position. The contract must include:

  1. Nature of Service: Detailed description of job responsibilities and expectations.
  2. Hours and Place of Work: Stipulate working hours and job location.
  3. Tea and Lunch Breaks: Outline policies regarding breaks during work hours.
  4. Remuneration: Salary structure and compensation details.
  5. Sick Leave: Policies regarding sick leave entitlements and procedures.
1.8 First Steps in Selling Process

Demonstrate application of the first three steps of the selling process with examples for each step.

  • Steps Include:
    • Prospecting: Identify potential customers or leads.
    • Approaching: Techniques for engaging the customer.
    • Presentation: Showcasing the product's features and benefits.
  • Provide examples relevant to the chosen product.
1.9 Security Measures Against Shoplifting

Discuss security measures that can be implemented in the business to prevent shoplifting.

  • Possible Measures Include:
    • Surveillance cameras to monitor customer behavior.
    • Security personnel present in-store.
    • Electronic article surveillance systems.
    • Employee training programs for recognizing suspicious behavior.