Enterprise,business growth and size

Question 1

Define the term entrepreneur

Answer 1

It is someone who have ability to take risk and organise factors of production to make goods and services to satisfy customer’s need and wants
OR
It is a person who organise,operates and take risk for new business venture

Question 2

List the characteristics of enterpreneur

Answer 2

(i)Hardworking
(ii)Risk-taking
(iii)Creative

Question 3

Explain the benefits of being an entrepreneur

Answer 3

(i)Independence/freedom of action
(ii)Use own ideas
(iii)Enjoy all profit

Question 4

Disadvantage of being entrepreneur

Answer 4

(i)Greater risk of business failure
(ii)Have to invest own their capital
(iii)Lack of knowledge and experience in starting,operating and managing new business

Question 5

Explain the business plan

Answer 5

It is a document containing business objectives and important details about operations,finance and owner of new business

Question 6

Explain the importance of business plan

Answer 6

The bank will ask for a business plan before agreeing to give a lean overdraft to help financially new business
The government as well will ask for business plan before approving a grant to enterperneurs

Question 7

List the contents of a business plan

Answer 7

(i)Description of business
(ii)Product(goods and services)
(iii)Market
(iv)Business locations and how product will reach customer
(v)Organisation structure and management
(vi)Financial information
(vii)Business strategy

Question 8

Explain how does government support small business start-up?

Answer 8

(i)By organising training for entrepreneurs that gives advice and support sessions by experienced business people (SEMs)
(ii)By providing cheaper loans and with lower rate of interest

Question 9

Explain why does the government support business start-up?

Answer 9

(i)To reduce unemployment
(ii)To increase competition and output
(iii)To benefit society