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DESCRIPTION OF BUSINESS

Chic Creativity will be a sole trader enterprise with the legal status unlimited liability. The main
affair of the business is making and selling natural paper from recycled materials. Products will
also be developed from the paper made and other skills such as graphics will be incorporated.

OBJECTIVES OF THE BUSINESS

To provide quality products to keep customers happy and coming back.


To make a profit of 20% in the first two years.
To increase the business market share in the first five years.
To produce environmentally friendly products.
To help the local economy by lowering its import bill on commercially produced paper.

MISSION STATEMENT
To create a sustainable business by producing a unique paper for every customer using
environmentally friendly materials. We aim to keep our customers happy and satisfied as we
exhibit our talents to the outside world.

JUSTIFICATION OF LOCATION

Chic Creativity will be located in Anse Ger, Desruisseaux next to the Anse Ger Rural Service
Centre. Three reasons for this location are:
Availability of raw materials: Since the business main raw material will be agriculture
based e.g. banana stalk, it will be close to the source.
Availability of land: There is the availability of sufficient land, at an economically
viable price.
Easy transport access: The business will be about five minutes away from the main
road which saves distribution cost and movement of raw materials. Also there is easy
access of the business by customers.

ROLES OF THE ENTREPRENEUR

An entrepreneur is a person in charge of constituting and governing a new business or process or


act of managing a business. This person takes responsibility for all risks incorporated in running
a business. The entrepreneur at Chic Creativity will be:
Inventing and commercialising new goods and services: This entails looking for other
raw materials and recycled items that can be used and incorporated in the paper
production and incorporating new services such as making arrangements for tours for
tourists and people who wish to view the paper making process, thus creating
advertisement for the business and the country.
Looking for ways to improve the production of goods and services: This would entail
looking for machines which will quicken and better the production of paper, as well as
other services maybe eventually implementing delivery services.
Planning, developing and marketing ideas: This entails planning and developing new
ideas for the business like the delivery services.

USE OF TECHNOLOGY

Chic Creativity will be using the following forms of technology:


The Hollander Beater: The main equipment needed in the production of paper is the
Hollander Beater. It replaces the stamp mill used in commercial paper making, which
takes eight days to prepare the pulp, whereas the Hollander Beater takes one day. It also
creates longer, hydrated paper fibre. This would help enhance the efficiency of the
business as more paper will be produced quicker and stronger.
Online Ordering: It will be quicker and easier for customers. In a world where technology
is becoming very dominant, the business would fit in perfectly with this technological
factor as customers are more technology literate, thus attracting customers regionally and
internationally who just have to use the internet to order.

POTENTIAL FOR GROWTH

INTERNALLY
The business can experience internal growth by increasing its level of sales through better use of
assets. A Hollander Beater would allow the business to save money by making bulk purchase
since this machine allows a greater amount of raw material at one time. Also, profits can be
reinvested in the business to buy more equipment and employ more workers.

EXTERNALLY
Internal growth must be monitored to ensure assets are not strained beyond their capabilities.
External growth strategies can be used when there is no more room for internal growth, such as a
merger or an alliance with a similar business in order to share resources and sales. Therefore, in
the next ten years after commencement of the business, the business will seek a loan from the
credit union to open a new branch in another community to service more customers.

SELECTION OF APPROPRIATE LABOUR

Chic Creativity will be using labour intensive production as its most appropriate form of labour
because eight persons will be employed. This type of labour is necessary because it requires
human effort and skills to actually make the paper even with the use of machines to prepare the
pulp.
NUMBER OF
POSITION

DUTIES

QUALIFICATIONS

Making paper
and other
products.

Basic primary school


education.

Manager

Management
functions.

Secretary

Production
Workers

WORKERS

LEVEL OF

Processing
orders and
handling
enquires from
potential
customers.

Post Grad
diploma in
gender and
development
studies.
Project
management
certificate.
Certificate in
Agro-Eco
Business
Development.
Diploma in
Business
Studies.
Diploma in
Office
Administratio
n
Good literacy
skills.
Basic
computer
skills

SKILLS
Skilled

Skilled

Skilled

SOURCES OF FIXED AND WORKING CAPITAL

FIXED CAPITAL

In order to finance the business, capital is needed to purchase anything of value that provides
services to the business. Capital of $80,000 will be introduced into the business. The source of
financing will be from loans from banks and credit unions. This money will be used to purchase
fixed assets. Fixed capital at Chic Creativity will include machinery, computers, and vehicles.
Some of these will be bought on hire purchase.

WORKING CAPITAL
The money that remains after fixed assets are purchased will be used as working capital.
Working capital refers to the short term assets that the business will have available to operate the
business on a day to day basis. Personal savings of the owner will also be used as working
capital. After business operation the money and profits made will be re invested in the business
as working capital.

TYPES OF PRODUCTION

Chic Creativity will be involved in secondary production. Secondary production deals with the
manufacturing and construction industries. The business will be using raw materials obtained
from extracting industry and will change them into finished products such as paper.

LEVEL OF PRODUCTION

Chic Creativity will operate within the domestic level of production since quantity produced will
be sold and consumed in the country of production. Chic Creativity is looking forward to
catering to at least five persons on a daily basis given that at least the order for one day is about
one thousand five hundred sheets of paper. This production will involve no exports or imports
but will be used to satisfy domestic needs.

QUALITY CONTROL MEASURES

Quality control measures are these activities a business undertake to ensure the companys
product meet the standard the firm has set, for the maximum legal requirement. Two quality
control measures the business should adhere to are:
Teamwork: Members of the production team will watch the quality of work of the other
member and correct them if they are doing something wrong. They will also take turns
doing the work of others. They are also able to take up duty of a colleague in ones
absence.
Statistical Process Control: This is applied in order to monitor and control the process.
Monitoring and controlling the process ensures that it operates to its full potential. A
machine operator or employees will check that the machines are in proper working
conditions prior to new working shifts.

LINKAGES

Chic Creativity will have a backward linkage. This is because the output of another business
or industry will be the input or raw materials at chic Creativity. The business will use
shredded paper from another business and also banana stalk from farmers and old thick
clothing material from different suppliers. Linkages will not only encourage growth and
development but also the business in particular. The business will benefit greatly if raw
materials are not imported but is obtained locally, hence, the business will not have to pay for
importation. As a result the business will have more profits to work with.
Diagram Depicting Linkage Mentioned Above
(Backward Linkage)
Old jeans and clothes
(From different local
suppliers)

Banana stalk (From local


farmers)

Chic Creativity
(Paper Producer)

Shredded paper (From


local businesses)

GOVERNMENT REGULATIONS

Government regulations will have a great impact on the expenses and operation of the business
such as legality or operations, location etc. a business is not considered to be legal unless it is
registered with the relevant government agencies. Government agencies also help the business to
provide better quality products by ensuring certain standards are adhered to.
Regulations related to Chic Creativity are:
1. The business must pay a portion of its profit to the government as taxes.
2. Business place should be inspected by safety officials.
Not abiding to these regulations, the business cab be charged or face a possible law suit if
anything happens as a result of not having the business inspected by safety officials.

ETHICAL ISSUES

The word ethics refers to things considered to be right or wrong. The business has a social
responsibility to the population it will serve and also has to make ethical decisions in the way
business should be conducted.
One ethical issue the business may face is:
The disposal of waste products after production: After production the waste products or material
must be disposed or appropriately to prevent pollution. Not adhering to proper disposal is
breaking the law since government regulations are put in place to protect the environment. If the
business is caught disposing its garbage inappropriately, the business can be charged a large sum
of money. This can impact on the business negatively in that profit will decrease as it will be
used to pay the debt, hence the business will have less capital to work with.