1.3

Created by

Yatanar Moe

Cards (10)

Characteristic
Risk taker
Creative
Optimistic
Self-confident
Innovative
Independent
Effective communicator
Hard working
An entrepreneur is a person who organizes, operates and takes risks for a new business venture.
A business plan is a document containing the business objectives and important details about the operations, finance and owners of the new business.
Content of a regular business plan 
Executive summary: brief summary of the key features of the business and the business plan
The owner: educational background and what any previous experience in doing previously
The business: name and address of the business and detailed description of the product or service being produced and sold; how and where it will be produced, who is likely to buy it, and in what quantities
The market: describe the market research that has been carried out, what it has revealed and details of prospective customers and competitors
Advertising and promotion: how the business will be advertised to potential customers and details of estimated costs of marketing
Premises and equipment: details of planning regulations, costs of premises and the need for equipment and buildings
Business organisation: whether the enterprise will take the form of sole trader, partnership, company or cooperative
Costs: indication of the cost of producing the product or service, the prices it proposes to charge for the products
Finance: how much of the capital will come from savings and how much will come from borrowings
Cash flow: forecast income (revenue) and outgoings (expenditures) over the first year
Expansion: brief explanation of future plans
Making a business plan before actually starting the business can be very helpful. By documenting the various details about the business, the owners will find it much easier to run it. There is a lesser chance of losing sight of the mission and vision of the business as the objectives have been written down. Moreover, having the objectives of the business set down clearly will help motivate the employees. A new entrepreneur will find it easier to get a loan or overdraft from the bank if they have a business plan.
Why do governments want to help new start-ups?
They provide employment to a lot of people
They contribute to the growth of the economy
They can also, if they grow to be successful, contribute to the exports of the country
Start-ups often introduce fresh ideas and technologiesinto business and industry
Organise advice: giving them information useful in staring a venture, including legal and bureaucratic ones
Provide low cost premises: provide land at low cost or low rent for new firms
Provide loans at low interest rates
Give grants for capital: provide financial aid to new firms for investment
Give grants for training: provide financial aid for workforce training
Give tax breaks/ holidays: high taxes are a disincentive for new firms to set up. Governments can thus withdraw or lower taxation for new firms for a certain period of time
Business size can be measured
Number of employees: larger firms have larger workforce employed
business size is not accurate as a capital intensive firm ( one that employs a large amount of capital equipment) can produce large output by employing very little labour (workers).
Business size can be measured
Value of output: larger firms are likely to produce more than smaller ones
capital intensive firm ( one that employs a large amount of capital equipment) can produce large output by employing very little labour (workers).
Business size can be measured
Value of capital employed: larger businesses are likely to employ much more capital than smaller ones
value of capital employed is not a reliable measure when comparing a capital-intensive firm with a labour-intensive firm. Output value is also unreliable because some different types of products are valued differently, and the size of the firm doesn’t depend on this.