ENTREPRENEURSHIP

Entrepreneur- An entrepreneur is a person who has a vision and creativity as well as identifies successful business opportunities, risks, time and money to start and operate a business.

Entrepreneurship - the process of identifying successful business opportunities, risks, time and money to start a business, bringing the resources together to make a profit.

Functions

• Conceptualizing- forming a new business idea

• Accessing funds- Acquire funds to start and run the business this can be done through loans

• organizing- keeping records, proper documentation, hiring of staff, and acquiring resource

• operation- ensure daily activities are being carried out

• EBP- determine how well the business is doing

• Planning- setting goals to be achieved, create a business plan

Characteristics

• Goal oriented

• risk taker

• innovative

• Creative

• flexible

• persistent

Reasons why someone would start a business

• Self-fulfilment - involves deriving happiness from a passion such as surfing and making it into a business venture

• Increased control- entrepreneurs value autonomy and citing benefits, such as freedom in decision making.

STEPS TO START A BUSINESS

1. Conceptualization

2. RESEARCH

3. identification of resources

4. create a business plan

5. acessing funds

6. operation

BUSINESS PLAN

Business plan- an outline of the steps taken to start and operate a business, it includes a vision statement as well as a mission statement

Importance of a business plan

• it serves as a guide THROUGH EACH STAGE OF STARTING AND MANAGING YOUR BUSINESS

ELEMENTS OF A BUSINESS PLAN

Executive Summary - A brief summary, of the details in the rest of the plan, at the start of the business plan. It is to be written last.

Operational Plan-Gives information about how the business will be organized and operated. In includes the business’ name, address and legal structure as well as the business’ aims and objectives, overview of personnel, suppliers and equipment needed to start up and operate the business.

Business Opportunity- it gives detailed information about the product and/or service the business will offer. It also includes information about what makes the product special/ unique.

Market analysis- this part should clearly define the potential customers base are and estimate its size.

Financial Forecast- This part should include information about the source of finance as well proposed sales numbers and revenues. The key expenses of the business should be set out in this part.

ELEMENTS OF A BUSINESS PLAN PT2

• Exec Summary: an overview of the business

• Operational plan: details of the business including its structure, aims, objectives and operational details

• Business Opportunity: a description of the product or service

• Marketing plan: a description of potential customer and competitors- size of the market

• Financial forecast: sources of finance, cash flow, profit and loss forecasts

FEASIBILTY STUDY

A piece of research done to find out if a project or business will workout/succeeds. Aims to find out the strengths and weaknesses of a business proposal.

Significances-

• To identify possible sources of finances- it is important because it clearly identifies proven sources of finance, etc so that if the business should be opened they will have enough funds to run the business

• To identify possible costs attached to the business- To make sure that no expense is overlooked and that the business can pay for any expense to ensure the business will succeed

• To ascertain viability- a feasibility study should enable entrepreneurs to ascertain whether they should go through with launching a business.

FACTORS THAT DETERMINE THE LOCATION OF A BUSINESS

• Geographical factors

• Infrastructure

• Power and Water

• Telecommunications

• Labour Supply

• Government regulation

• Transport Links

• availability of raw materials and supplies- some manufacturing business use heavy, bulky raw materials that are expensive to transport so it makes sense to locate the business closer to their source to cut costs.

• Health facilities- important especially for businesses that are more likely to have accidents and injuries on site so in the event of accident a health facility is nearby to further the chance of survival as well as lessen the costs it would take to transport an injured individual to a hospital.

COLLATERAL

An asset, such as property, that a borrower provides as security in order to get a loan from a lender. If a borrower fails to pay back the loan, the lender can use the borrower’s collateral as payment instead.

TYPES OF COLLATERAL

• Property

• Stocks

• Bonds

• Money

• Life insurance

• Appliances

• Motor Vehicles

SOURCES OF INFORMATION

PRIMARY RESEARCH: Involves the collection of original and firsthand data directly from the source. Example:

• Surveys

• Interviews

• Photographs

• Artefacts and Objects

SECONDARY RESEARCH: involves the use of existing data that has already been collected by someone else for a different purpose Examples:

• Books

• Articles

• Documentaries

• Biographies

GOVERNMENT REGULATIONS

Rules set by different levels of government, including local, regional, and global, to govern business operations.

LEVEL OF GOVERNMENT RULE MAKING

• Local Rules - Made by local government, for example, the government of Jamaica.

• Regional Rules - Made by the regional government’s decision-making body. For example, CARICOM

• Global Rules - Made by groups of governments working together.

LOCAL GOVERNMENT REGULATIONS

• Municipal Rules - The municipal council creates municipal rules in a large urban area. These are specific to a particular city or county, and the government bodies within those cities or counties.

• Village Rules - Village councils are responsible for making the decisions necessary for the operation of their community.

• Parish Rules - Parish councils are the local authority that makes decisions on behalf of the people in the parish.

POLICIES

Monetary Policies

• The monetary policy involves the management of interest rates and the total supply of money in circulation in a business

Fiscal Policy

• The fiscal policy is a collective term used for the taxing and spending actions done by the government to influence aggregate demand in the economy

Consumer Protection Agencies

• These agencies stop unfair and fraudulent business practices by collecting complaints and doing investigations

Environmental Policies

• They are policies made to regulate resource pollution and to protect both humans and the environment

Intergovernmental Agreements

• Any agreement that is made between two or more governments in cooperation to solve problems of mutual concern.