ENTERPRISE,
BUSINESS GROWTH
AND SIZE

Textbook, Chapter 3 [pg 20-34]

Name: …………………………………………………

Class: …………

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Enterprise, Business Growth and Size

Enterprise and entrepreneurship
Learning outcomes:
• Identify characteristics of successful entrepreneurs.
• Explain contents of a business plan and how business plans assist
entrepreneurs.
• Explain why and how government support business start-ups.
• Identify methods of measuring size, eg. number of people employed,
value of output, capital employed.
• Identify the limitations of methods of measuring business size.
• Identify reasons why the owners of a business may want to expand the
business.
• Identify different ways in which businesses can grow.
• Identify problems linked to business growth and how these might be
overcome.
• Identify reasons why businesses remain small.
• Identify and explain causes of business failure, eg. lack of management
skills, changes in the business environment.
• Identify reasons why new businesses are at a greater risk of failing.

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Advantages of being Disadvantages of being an

entrepreneur entrepreneur

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Draw a mind-map for the characteristics of successful

entrepreneurs:

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Business Plan

Definition: Business Plan _____________________________

_________________________________________________
_________________________________________________

Elements in the business plan:

1)____________________

2) ____________________

3) ____________________

4) ____________________

5) ____________________

6) ____________________

7) ____________________

8) ____________________

9) ____________________

10) ___________________

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Why governments support business start-up?

Reason 1: ______________________________________________________

Explanation: _____________________________________________________
_______________________________________________________________

Reason 2: ______________________________________________________

Explanation: _____________________________________________________
_______________________________________________________________

Reason 3: ______________________________________________________

Explanation: _____________________________________________________
_______________________________________________________________

Reason 4: ______________________________________________________

Explanation: ____________________________________________________
_______________________________________________________________

Reason 5: ______________________________________________________

Explanation: ____________________________________________________
_______________________________________________________________

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Examples of support given by government to new business owners:

• Business _________
• P ____________
• Fi____________
• L____________
• R____________

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Comparing The Size Of Businesses

There are many ways to compare the size of business.

The most common one are:

a) Number of e________________

b) Value of o_____________

c) Value of s_________

d) Value of c________ e___________

Definition: Capital employed_________________________________

_______________________________________________________

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Why Do Owners Often Want Their Businesses To Grow?

• To get higher profits.

• To have higher status and prestige for the owners and managers.
• To achieve lower average costs.
• To achieve larger share market.

How Can Businesses Grow?

a) I____________ growth
b) E___________ growth

Examples of External Growth:

a) Horizontal Integration: ___________________________________
_______________________________________________________
Benefit 1: _______________________________________________
Benefit 2: _______________________________________________

b) i)Forward Vertical Integration: _____________________________

_______________________________________________________
Benefit 1: _______________________________________________
Benefit 2: _______________________________________________
ii) Backward Vertical Integration: ___________________________
___________________________________________________
Benefit 1: _______________________________________________

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Benefit 2: _______________________________________________

c) Conglomerate Integration: ________________________________

_______________________________________________________
Benefit 1: _______________________________________________
Benefit 2: _______________________________________________

Activity: Give one example of a firm which shows these three

integrations.

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Problems Of Business Growth and How To Overcome Them

Activity: Give some possible ways to overcome expansion problems

Problems Resulting From Possible Ways To Overcome

Expansion Problem
Difficult to control

Poor Communication

Costly

Different management style when

integration

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Why Do Some Businesses Stay Small?

a) Type of i____________________
b) Market s ____________
c) O______________ objectives

Why Some Businesses Fail?

a) Poor m_______________
b) Failure to p___________ for c ______________
c) Poor f____________ management
d) O__________ expansion
e) R________ of new business s_________ up

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