Entrepenership And Business Functions Flashcards
What are the FOUR types of entrepreneurs? (Give a brief description of each)
- Techno entrepreneur
(Looks at ways to develop tech or use tech to grow business)
- Social entrepreneur
(Starts business to solve social problems in society, mostly NGO’s)
- Tourism entrepreneur
( identifies gap in tourism industry and thus offers goods to attract tourists to the country eg: hotels, sight seeing tours)
- Enviro entrepreneur
( creating business to solve environmental problems eg: selling solar panels)
What other types of entrepreneurs have been currently growing in our country?
- Emerging entrepreneurs
( who were previously disadvantaged, with the PPA, creating a group of entrepreneurs that sell products to public sector)
- Informal entrepreneurs
(Operating in the informal sector, no fixed place and don’t pay tax, indirectly contributing to the GDP)
- Youth entrepreneurs
(PP’s to encourage youth entrepreneurship by providing resources and support, where they can grow and decrease unemployment rates and higher standard of living in South Africa)
What is a PPP?
Private public partnerships:
= partnerships between public sector and private sector for purpose of delivering service provided by public sector.
What is the PPA?
The preferential procurement act:
= gives a opportunity to previously disadvantaged or discriminated people based on race, gender, or disability, to become entrepreneurs.
Which business environment would the recent INCREASE of interest rates form part of?
Macro
What business function is responsible for the performance of an employee?
Human capital
Venessa owns a business in Kenilworth. She is the ONLY owner. Her form of ownership is called…
Sole proprietor
When a sole proprietor decides to invite their family to be “owners” of the business and changes the shops names, what new form of ownership will it be?
A partnership
What does the micro environment include?
Businesses suppliers, competitors
MOST CONTROL
What does the market environment include
Costumer trends, competition
LITTLE TO NO CONTROL
What does the macro environment consist of?
NO CONTROL
economic, natural, social, cultural forces
What are the characteristics of a sole trader?
They are not registered, 1 owner, self involved in management
What are the characteristics of a partnership?
Not registered, 2-20 partners, as per partnership agreement (profit and loss split) good faith.
What are the advantages of a sole trader?
The person have no registration fees, and it’s very quick to start. The owner takes all the profit for themselves. The person gains experience in all aspects, quick decision making.
What are the advantages in a partnership?
Aren’t registered, so quick to start, they just need a partnership agreement. More capital is available, skills combine. Better Decision making, division of labour.
What are the disadvantages of being a sole trader?
No separate legal personality, growth limited, owner takes full responsibility. Relying on self, no substitute for leave.
What are the disadvantages of being in a partnership?
No separate legal personality, growth is limited, partners are all responsible. Slow decision making, cause everyone’s input is needed.
What does separate legal personality mean?
a legal contract that says that corporate entities are legally DESTINCT from their OWNERS. (That person is separate from their company)
= having no separate legal personality means you are the face of your company, and that you are not separate from it, so if you fall into debt, they sell your own personal property.
Name what the FIVE sectors of the economy AND GIVE EXAMPLES OF EACH!:
Primary: extraction of raw materials, COTTON FARMER
Secondary: manufacturing proces for finished goods (transformation of raw goods) DENIM MATERIAL
Tertiary: service based activities FACTORY MAKING JEANS
Quaternary: Knowlege based activities
Blogger blogging the jeans that she bought
Quinary: intellectually based activities
TEACHER TEACHING THE MANUFACTURING PROCESS OF JEANS
Which TWO labour acts have a DIRECT impact on the human resource function and employees of a business? GIVE A BRIEF DESCRIPTION OF BOTH
Labour relations act
(protects rights of workers by providing ways to settle disputes between employers and employees)
Basic conditions of employment act
(Gives employees a minimum of 21 consecutive days or 15 working days annual leave on FULL PAY)
