Summary Olevel/IGCSE Business Studies Chapter 3: Enterprise, Business Growth and Size
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Course
Business
Institution
Sixth Year / 12th Grade
These class notes aid in removing the need for a book as they make clear all the topics needed to understand the chapter on Enterprise, Business Growth and Size for O level and IGCSE Business.
BUSINESS STUDIES
SECTION 1
CHAPTER 3: ENTERPRISE, BUSINESS GROWTH
AND SIZE
ENTERPRISE AND ENTREPRENEURSHIP:
Entrepreneur: A person who organizes, operates and takes the risk for a
new business venture.
Advantages of becoming and entrepreneur:
1. Independence- can choose how to use time and money available.
2. Can put own ideas into practice without anyone’s restriction.
3. Can become famous and successful with business growth.
4. With a successful business, salary/income can be higher as
compared to working for another business.
5. Personal interest and skills can be used without control from a
boss.
Disadvantages of becoming an entrepreneur:
1. There is a major risk of the new business failing, especially due to
poor planning.
2. Large amount of capital is needed- entrepreneurs have to put their
own money/savings into the venture and might have to find other
sources of capital as well, such as loan.
3. Lack of knowledge and experience of running a business, resulting
in inefficiency.
4. Opportunity cost- lost income of not being an employee for
another company/enterprise.
, CHARACTERISTICS OF A SUCCESSFUL ENTREPRENEUR:
1. Hardworking: Is ready to work long hours and take short holidays for a
successful business.
2. Risk taker: Making decisions to produce goods or services that people
might or might not buy is potentially risky.
3. Creative: Has new and special ideas about products, services and
methods of attracting customers to make the venture unique.
4. Optimistic: Is positive about the future even during unsuccessful times.
5. Self-confident: This quality allows to convince customers, banks and
other lenders that the business will be successful.
6. Innovative: Is able to put interesting ideas into practice in different ways.
7. Independent: Is well-motivated and able to work without any help before
they can afford to employ workers.
8. Effective communicator: Is able to speak clearly and confidently to banks,
other lenders, potential customers and government agencies, raising
business image and profile.
BUSINESS PLAN:
Business Plan: A document containing the business objectives and
important details about the operations, finance, and the owners of a
new business.
A bank always asks for a business plan before agreeing to a loan or
overdraft to help finance a new business and without one does not
agree to any financial help.
Even with a detailed business plan, the request for a loan can be
rejected by bank manager as they don’t find it to be well complete.
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