BEE

• Sources of business ideas

  • friends & relatives
  • Internet & magazines
  • Surrounding locality
  • Hobbies & activities
  • Qualifications & experiences
• Characteristics of business ideas

  • Innovative: Creating new ideas & products to suit consumers tastes & preferences
  • Uniqueness: The goods & services should be unique to attract more customers
  • Attractive: A good business idea should attract a large number of customers
  • Growth potential: Entrepreneurs need to observe the market trends & adapt to consumers tastes & preferences in order for the business to grow over time
• Business plan


  A detailed document that provides information on the activities that the business is undertaking
• Steps to set up an enterprise

  1. Business idea

  2. Type of enterprise (alone/partners)

  3. Business name

  4. Business Location

  5. Registration of enterprise

  6. Sources of funds

  7. Organising resources

  8. Launching the product

  9. Business plan
• Business Organization

  An enterprise set up by entrepreneurs to produce goods and services
• Sole trading business

  A business owned and controlled by one entrepreneur only to make profits
• Sole trader

  A person who operates his own business alone to make profits
• Features of a sole trading business

  • Only one owner
  • Capital is brought in by owner only
  • Owner bears all risks & keeps all profits
  • Unlimited liability
• Partnership

  Consists of 2 or more people who collectively own and manage a business to make profits
• Partnerships

  • Accountants
  • Lawyers
  • Building contractors
• Deed of partnership

  An agreement which outlines the terms & conditions of a partnership business
• Features of a partnership

  • Capital is contributed by all partners
  • Joint ownership of the business
  • The partners share the risks and rewards of the business
• Conditions in a Deed of Partnership

  The amount of capital contributed by each partner<|>The sharing of tasks among each partner<|>The way in which the profits or losses would be shared out among partners
• Production

  The process of using resources to manufacture goods or provide services
• Production processes

  • Production of bread in a bakery
  • Manufacture of furniture in a carpenter's workshop
  • Retailing Service in a supermarket
  • Providing education in a school
• Production process

  The steps involved in transforming factor inputs into outputs
• Inputs

  The resources or factors of production
• Factors of production

  Land, labour, capital, enterprise
• Output

  The goods & services produced
• Labour intensive

  When an enterprise uses more labour than capital in the production process
• Labour intensive enterprises

  • Firms which find labour more productive than capital
  • Small firms which find labour cheaper and more readily available than capital
  • Enterprises providing services
• Capital intensive

  When an enterprise uses more capital than labour in the production process
• Capital intensive enterprises

  • Firms which have complex production process which cannot be carried out effectively by labour
  • Firms that produce on a large scale
  • Firms that find capital cheaper & more productive than labour
• Small scale production

  Production within a small enterprise
• Small scale production

  • A hawker
  • A Tailor
  • An artist
• Large scale production

  Mass production within a large enterprise
• Large scale production

  • A Textile factory
  • A juice manufacturer
  • A car manufacturer
• Methods of production

  Job production<|>Batch production<|>Flow production
• Job production

  • Tailors, hairdresser, taxi services, beauticians & cobblers
• Batch production

  • Bakeries, textile factories & shoe factories
• Flow production

  • Manufacturers of soft drinks, manufacturers of mobile phones
• Technology

  The methods & tools used to facilitate a process
• Technology used in

  • Classrooms
  • Supermarkets
  • Agriculture
• Benefits of Technology

  • Produce high quality output
  • Produce more output
  • Produce output faster
  • Produce a variety of products
• Sustainable production

  Production of output using technology and processes that protects the environment
• Sustainable production

  • Recycling paper
  • Composting
  • Using energy saving devices
• Funds

  Money used to set up businesses & pay for their expenses
• Start-up capital

  The amount of money an entrepreneur needs to set up an enterprise
• Capital expenditure

  Money spent on items which last for a long period of time in a business
• Revenue expenditure

  Money spent on the day to day expenses of an enterprise