BUSINESS ENTERPRISE COMPLETE NOTES

ENTERPRISING
Def.: is the process of identifying a business idea/ opportunity and nurturing it so as to enjoy
profits as a return on investment
Def.: is the process of identifying a business idea and implementing it to make a profit
ENTERPRISE
Def.: is formed by an individual or individuals for the purpose of undertaking an activity or
activities for a profit.
Def.: is an establishment aiming to produce, manufacture, trade or provide a service for a
profit for its entrepreneur/owner
ENTERPRISER/ ENTREPRENEUR
Def.: these are risk takers that invest money in their business ideas with a motive of making
a profit
Def.: Entrepreneur ls a person who organises, operates and takes the risk for a new business
venture
Drivers towards
✓ Failure to secure employment after college
✓ Loss of jobs through retrenchment
✓ Poor working conditions
✓ Lack of promotional prospects
✓ The need to be one’s boss
✓ Creative and innovative business ideas
Characteristics of a successful entrepreneur.
➢ Creativity/ innovativeness ➢ Problem solving
➢ Perseverance / ability to bounce ➢ Leadership
back. ➢ Emotional intelligence
➢ Dedication/ hardworking ➢ Risk takers
➢ Team building ➢ Effective communicator
➢ Self confidence ➢ Independent
➢ Passion

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 ✓ Hardworking - Long hours and short holidays are typical characteristics of
successful entrepreneurs.
✓ Risk taker - They put money in investments that they are not sure will pay off but are
always optimistic that they will earn returns on investments
✓ Creative - They come up with business unique ideas that will give them returns and
create a unique selling point
✓ Optimistic - Entrepreneurs are hopeful and confident about the future, they see
positivity in every situation hence support their business ideas.
✓ Self-confident - Successful entrepreneurs have a feeling of trusting one's abilities,
qualities, and judgement hence becoming successful.
✓ Innovative - Entrepreneurs will develop the available original ideas to create a unique
selling point so as to lure customers
✓ Independent - Entrepreneurs will often have to work on their own before they can
afford to employ others, they should be able to work without any help
✓ Effective communicator - Talking clearly and confidently to stakeholders about the
new business will raise the profile of the new business
✓ Leadership - Entrepreneurs should possess the ability to inspire people to do work so
as to create a unique selling point.
✓ Team building, - Entrepreneur is a person who plays or works well as a member of a
team and is able to convince people to join his/her initiative and work for a common
goal.
✓ Delegation - Successful Entrepreneurs possess the ability to allocate tasks to
subordinates so as to make the job easier, successful and fun.
✓ Ability to bounce back - Entrepreneurs no matter how many times they might fail,
they will always look forward for a better future
✓ Problem solving, - In spite of the challenges they might face in achieving objectives
they always find solutions to the available problems
✓ Determination to succeed - Entrepreneurs have firmness of purpose, and have a
tendency to move in a fixed direction so as to achieve set objectives.
✓ Perseverance. - Entrepreneurs will continue in a course of action in spite of difficulty
or with little or no indication of success.

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Advantages of being an entrepreneur
✓ Entrepreneurs create new businesses. In many cases, entrepreneurial activities
increase competition and, with technological or operational changes, it can increase
productivity as well.
✓ Small businesses broaden the base of participation in business by ordinary people in
Society in the process this creates more jobs.
✓ Small businesses are more likely than large companies to produce specialty goods and
services and custom-demand items.
✓ Innovations improve the quality of life by multiplying consumers' choices. They
enrich people's lives in numerous ways by, making life easier, improving
communications, providing new forms of entertainment and improving health care.
✓ Entrepreneurial behaviour drives innovation and growth for the economy and for
individual companies since it involves a willingness to take advantage of unexploited
opportunities. Thus, entrepreneurs play a crucial role in mobilising resources and
promoting economic growth and socioeconomic development. Tills is particularly
true in the developing world, where successful small businesses are primary engines
of job creation and poverty reduction.
✓ Create your own destiny - Entrepreneurs are their own bosses, this enables creativity
and innovativeness
✓ They make quick decisions, choose whom to do business with and 'what work they
will do and decide what hours to work, as well as what to pay and whether to take
vacations.
✓ Reach your full potential- Entrepreneurs can do what they are passionate about.
✓ Reap impressive profit – Entrepreneurship offers a greater possibility of achieving
significant financial rewards than working for someone else.
✓ Contribute to Society and be recognised for your efforts - most entrepreneurs help the
local economy, but some, through their innovations, contribute to society as a whole.
One example is entrepreneur Strive Masiyiwa, who co-founded Econet and helps the
Zimbabwean community through offering scholarships. Corporate Social
Responsibility [CSR]
✓ Collect prestige - There is prestige in being the person in charge, thereby complying
with Maslow’s hierarchy of needs
✓ Infrastructural development – they can be involved in building of roads, hospitals and
schools assisting the community
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 ✓ Revenue to the government through payment of taxation to the ZIMRA which can be
used in other sectors to enable economic growth e.g. public sector i.e. ZINWA
✓ Raise standards of living – provision of goods and services that will ensure the life of
the local people is made easy and better.
✓ Economic development – this will be achieved through increase in the gross domestic
product [GDP]and gross national product [GNP]
✓ Technology is introduced in to the country which will be used to improve the quality
of goods and services provided to the customers hence satisfaction
✓ Provide competition to large organisations hence quality products are produced and
eliminates consumer exploitation

Disadvantages of being an entrepreneur

✓ The uncertainty of income - There is no guarantee of earning money and the income
can vary daily, monthly and yearly, unlike a salary, which is fixed.
✓ The risk of losing entire investment - If the venture is not successful, the resources
that were invested go to waste.
✓ The long hours and hard work - This is especially the case when establishing the
venture. An entrepreneur has no set times to start and finish work. They work as long
as the situation demands.
✓ The high levels of stress – This result from the desire to see the project succeeding
and the desire not to waste time and money.
✓ Maybe overworked – due to level of commitment they will end up working for long
hours and over holidays
✓ May evade payment of taxes – majority will operate as backyard industries hence will
avoid paying taxes hence creating a burden to the few tax payers
✓ Some are engaged in illegal business dealings e.g. selling of drugs that need doctor’s
prescription over the counter and without any prescription
✓ May be involved in smuggling of illegal products
✓ Some may be involved in political issues thereby creating political instability which is
not a favourable situation for enterprising

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 Roles of an enterpriser in business such as:
✓ Scanning the environment – is the process of gathering crucial information that is
needed in the decision-making process of and enterprise. Scanning enables businesses
to identify opportunities and threats hence creating a unique selling point and
enjoying profits
✓ Identifying business opportunities – enables the identification of business ideas that
will enable the business to enjoy profits. Identification is the first step hence scanning
will be done to assess the opportunities and threats in the provision of goods and
services hence one can become a market leader.
✓ Mobilizing necessary resources - involves the accumulation the required items, in
required quantities, at the right time and at the right place to have a successful
enterprise. Resources can be divided into the following:
➢ Financial resources -
➢ Human resources
➢ Capital resources
✓ Proper allocation of resources - resources need to be allocated in order of priority to
the available departments. Failure to allocate resources properly can lead to failure of
the business emanating from conflicts. Crucial departments that needs priority are:
➢ Production departments
➢ Marketing department
➢ Human resource department etc.
✓ Setting up the business – This will need clarity on what exactly the business wants to
do e.g. Manufacturing, Retailing, Service provision
➢ This will involve establishing a clear objective of what type of business one
wants to establish e.g. sole trader, partnership, cooperative, or a company.
➢ Entrepreneurs need to assesses the opportunities and threats of setting up a
new business start-up.
➢ There would be need to scan for the required amount of capital, required
labour force, types and quantities of products, and required services.
➢ This will involve demand forecasting, researching on the right quantities
required on the market and what competitors are available on the market
➢ The enterpriser will have to come up with a convenient location for the
business, close to the customers/ market or close to the suppliers or raw
materials
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 ✓ Managing business operations – this will comprise of management functions such as:
➢ Planning - is looking ahead. This involves setting aims or targets for the
organisation. Planning gives the organisation a sense of direction or purpose.
Managers need to take the organisation's available resources and the flexibility
of its personnel into consideration when planning.
➢ Organising - An organisation can only function well if it is organised. This
means that there must be sufficient capital, staff and raw materials for the
organisation to run smoothly and have a good working structure. A manager
cannot do everything, and must therefore delegate responsibilities to others in
the organisation. These people must have the resources to do their tasks. It is
the responsibility of the manager to make sure that these resources exist. The
manager's function is to organise people and resources effectively.
➢ Directing - People who work in an organisation need to know what to do.
This means that managers need to give clear working instructions so that
employees know exactly what is required of them. Managers need to be able
to motivate a team and encourage employees to take the initiative.
➢ Co-ordinating - means bringing together. The co-ordinating function of
management means bringing the people in the organisation together. For
example, an organisation with many departments, such as marketing,
production, transport and finance, needs to be co-ordinated so that the people
can work well together for the good of the organisation. This requires clear
communication and good leadership. Only through positive employee
behaviour management can the intended objectives be achieved.
➢ Controlling - involves verifying whether everything is going according to
plan and making sure that the correct activities are being carried out.
Managers need to measure and evaluate the work of all individuals and groups
to make sure they are on target or meet tl1e aims of the organisation

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Drivers towards enterprising
✓ These are the factors that pushes one to develop an enterprise

Government
policies

Well thought
community business idea
Drivers
towards
Enterprising Self
Inheritance
Actualisation

Demorgraphic
and Economic
changes

Government policies
Def.: This is a course or principle of action adopted or proposed by a state is used to govern
the state
Def.: these are rules, laws or regulations that are enacted by the government in order to
govern the state.
✓ As the government implements the policies, they will be divided into two categories
namely:
➢ Policies that promote success of enterprising
➢ Policies that hinders success of enterprising
Policies that promote success of enterprising – these are policies that ensure the success of
the enterprises such as the following.
➢ Taxation – government can allow enterprises to operate without paying taxes
[it allows tax holidays to enterprises since some enterprises pay double taxes
e.g. tax on profits and tax on dividends. Less taxation will mean the businesses
will have more profits retained and increasing its capital base with readily
available and cheap capital hence enterprise success.
➢ Registration process – it’s a requirement by the law in accordance with the
company’s act that enterprises should operate when they are registered, the

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 legal formalities can be expensive for small scale enterprises e.g. trading
licence. Some legal formalities are expensive and cumbersome to attain
especially those of companies, they are too many:
▪ Articles of association
▪ Memorandum of association
▪ Certificate of incorporation
▪ Certificate of trading
▪ The government should ease up on the documentation of enterprises so
as to promote their existence and success.
➢ Interest rates – these rates are set by the government hence low interest rates
will mean small businesses can borrow and pay back without being ripped all
the profits hence they can retain them and improve their capital structure.
➢ Training and development – the government can offer training to enterprises
so as to improve their skills set in managing the business. Trained personnel
results in quality products and services hence the enterprise enjoys competitive
advantage over its competitors. training also reduces the risks of injuries hence
reducing unnecessary costs that would have been incurred by the enterprise.
➢ Research – the government should encourage universities o develop research
labs and make the available to enterprises. They will research on consumer
tastes and preferences, consumer demand hence providing what the consumers
want rather than what they can buy.
➢ Business idea and support – the government can ensure that the enterprises
have seminar sessions where they receive advice and support offered from
experienced entrepreneurs such as Strive Masiyiwa just to mention a few.
➢ Unemployment rate – if the government strives to maintain a low
unemployment rate this will mean consumers will have more buying power
hence this will mean consumers can buy more products thereby promoting
success of the business.
➢ Inflation rate – low inflation rates tend to encourage business growth since
returns on investments will be favour arable and lures investors hence this will
lead to flourishing of the business and growth of the business. All in all this
increases the marginal propensity to spend of consumer there by buying more.
➢ Exchange rates - stable exchange rates within the country tends to promote
business growth and success, companies will be able to acquire raw materials
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 from other countries e.g. Toyota, G-tel, Foton. More so, it enables consumers
to spend mor.
➢ Ownership and control policies – the government can allow businesses to
operate with minimum intervention, more so, it can reduce the ownership %
they claim from businesses from 51% to a lower % that is attractive to the
various stakeholders.
➢ Demographic changes – these are influenced by changes in human population
such as fertility rate, mobility [permanent or temporary], life expectancy just
to mention a few. All the above stated will affect demand of products and
services of a particular organisation or organisations. Since human s are
dynamic animals their tastes and preferences change with time for example
location of the individuals, type of products, level of spending and buying
behaviours change hence affecting business success either positively or
negatively.
➢ Well thought business idea – a well thought idea instils confidence in investors
and the directors of the business. This will enable the business to access loans
since it will be well laid out and shows a profitable future
➢ Inheritance – majority of individuals have inherited large amounts of assets
which they end up investing so as to get returns on their investments. Hence it
becomes a driving force towards enterprise start-ups.
➢ Self-actualisation - this is a difficult level to reach since if a single need is
satisfied then one needs to satisfy another need. This is known as the level of
elf contentment. As one sees his/ her business idea flourish that sense of self
contentment, as one reaches full potential.
➢ Community – the mentality of providing the community with better products
and services, to ensure that the standards of living of the community will drive
one to be an entrepreneur. Strive Masiyiwa is helping the Zimbabwean
community through Scholarships

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BUSINESS ENTERPRISE POSSIBLE QUESTIONS
explain the concept of enterprising
identify skills and personal attributes needed to run an enterprise
explain skills and personal attributes of a good enterpriser
apply leadership skills in a given project
identify the benefits and drawbacks of enterprising
explain the role of an enterpriser in an enterprise
list the drivers towards enterprising
explain the different drivers towards enterprising
evaluate drivers towards enterprising

􀁸 State characteristics of an entrepreneur

􀁸 Analyse advantages and disadvantages of being an entrepreneur
􀁸 Discuss importance of enterprise skills
􀁸 Assess the importance of enterprise skills to the economy
􀁸 Analyse management functions
􀁸 identify on effective management skills
􀁸 Describe importance of management functions
􀁸 identify ethical considerations in business
􀁸 Describe the role of ethics
􀁸 Analyse importance of ethics in business
􀁸 Cite unethical conduct in business
􀁸 List contents of a business plan
􀁸 Describe contents of a business plan
􀁸 Craft a business plan of a business of your choice
􀁸 identify business ideas
􀁸 List different types of Intellectual Properties
􀁸 Describe types of intellectual properties
􀁸 Propose solutions to intellectual properties infringements
􀁸 Explain functions of Zimbabwe Patents office
􀁸 identify areas where of the African Regional International Property Organisation (ARIPO)
and Zimbabwe Patents Office are located

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