Caribbean Advanced Proficiency Examination

Entrepreneurship

Internal Assessment

Name of candidate: Tatyana Rock

Candidate Number: 090047
Name of School: St. Stanislaus College
Centre Number: 0900470577
Subject: Entrepreneurship
Territory: Guyana
Year of Examinations: 2018

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Content Page Page
Acknowledgement 3

Market Research
Introduction 5
Research Objectives 6
Target Population 7
Methodology 8
Questionnaire 9-10
Finding and Analysis 11-13
Analysis of Results 14-15
Conclusion 16

Business Model
History of Venture 18
Mission and Vision Statements 19
Objectives 20
Value Proposition 21
Beneficiaries 22
Operations 23
Product Differentiation 24
Income Generation 25
Growths 26
Financial Start up 27
Cashflow Statement 28
Analysis of Cashflow Statement 29-30
Bibliography 31

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Acknowledgement
In expressing my gratitude, I would like to thank GOD for the strength that took me through this
School Based Assignment. Also sincere thanks go to my teacher and parents for the help and
support in completing this assignment

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Market
Research

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 Aleean’s Recycling
Tyre Craft Shop

Recycling is the process of converting waste materials into new materials and objects. It is an
alternative to "conventional" waste disposal that can save material and help lower greenhouse
gas emissions (compared to plastic production, for example). Recycling can prevent the waste of
potentially useful materials and reduce the consumption of fresh raw materials, thereby
reducing: energy usage, air pollution (from incineration), and water pollution (from landfilling).
Recycling is one of the businesses of the future that you must invest in now if you have the means.
As the green awareness trend and eco-consciousness increases, the demand for recycled products
or items will also increase. This opens an avenue for smart entrepreneurs to capitalize upon, make
a living and amass wealth. Aleean’s Recycling Shop was created to be centered on the process of
converting recycled tyres into unique home décor. The business will be specialized in producing
chairs and tables from tyres which in turn would be environmentally friendly. It will provide
customers with products that are made to fit their lifestyle and satisfaction. With an aim to provide
quality goods, great pricing strategies and courteous customer service, customers will be sure
support this upcoming business.

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Objectives
 To promote the preservation of the economy by reducing the wastage of tyres while
making a monthly income of $18000-$40000.
 To make residents of Georgetown more environmentally friendly by selling the recycled
products at a cost-effective price of $4500-$8000 for the first two financial years.
 To start production with two ideas of recycled products and increase to four products in
the second financial year.
 To find out who will purchase the products created.
 To find out what customers expect in the intended product.

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Target Population
The researcher has decided that the recycled products will be sold mainly to consumers who
reside in Georgetown. Population of ages 18 to 50 both male and female be targeted. To add
assurance to this decision, research will be done by the use of primary data and the instruments
that will be used are questionnaire and interview. The sampling will be done in communities of
albertown, south ruimveldt, lodge, kitty Kingston and work-en-rust. The sample method chosen
to carry out the research is non-profitability. With simple random sampling, the researcher
selects random residents in the area to share questionnaire to but persons whom they see fit to
respond to structured questions.

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Methodology
In doing this research, the researcher had to visit communities within Georgetown in order to gain
the necessary information. In doing this analysis both primary and secondary sources of data were
used. The research instruments used to gain information were questionnaires and the internet
respectively. The investigation began on the 3rd of November, 2017 and concluded on the 29th of
December, 2017. The questionnaire is a set of printed or written questions with a choice of
answers, devised for the purposes of a survey or statistical study. The questionnaire was chosen
because information can be easily gained from respondents and it was extremely useful in the
detailing of information. When the questionnaire was drafted and modified, it was taken on the 1st
of November, 2017 to the first community, Wortmanviille. With simple random sampling, the
researcher selects random residents in the area to share questionnaire to. The internet was used to
research ways in which the business and product could be enhanced to appeal consumers and it
also helped with the of research of questions for the questionnaire. Both the primary and secondary
data were efficient and helped researcher to understand the dilemma better so that the analysis
could have been done.

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Questionnaire

1. Would you support an upcoming entrepreneur who wants to produce

recycled products?
Yes [ ] No [ ]

2. Do you see this initiative of producing recycled products as being

environmentally friendly?
Yes [ ] No [ ]

3. Do you think producing tables and chairs from tyres would be wholesome
products?
Yes [ ] No [ ]

4. Do you think this product would be financially beneficial?

Yes [ ] No [ ]

5. What range of prices would you like to purchase furniture at?

$3000-$6000 [ ] $7000-$11000 [ ]
$12000-$15000 [ ] $16000-$20000 [ ]

6. Would increasing production of two items to four items in the second year of
the business be effective?
Yes[ ] Maybe[ ] No[ ]

7. Would you prefer another recycled material as the product?

Yes [ ] Maybe [ ] No[ ]

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8. If yes, Please state other product.

9. Do you think it would be beneficial to have a social media page, where

consumers can contact entrepreneur for information?
Yes [ ] No [ ]

10. How would it benefit you to use a recycle product and not an original
product?
_____________________________________________________________
_____________________________________________________________

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Findings and Analysis

Figure 1

AN ENVIRONMENTALLY FRIENDLY
PRODUCT
50
45
40
35
30
25
20
15
10
5
0
Yes No

This figure represents a pie chart showing the number of responses to the recycles product being
environmentally friendly. As shown in the chart 96% of residents see the recycled products as
environmentally friendly while the others 4% voted no.

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Figure 2

PRICE RANGES FOR FURNITURES

$16000-$20000

$12000-$15000

$7000-$11000

$3000-$6000

0 10 20 30 40 50 60 70 80 90 100

Ranges

This Bar Chart shows the ranges of prices customers would be willing to pay for a recycled
furniture. A whopping 92% of residents are willing to $3000-$6000. This may be because it is a
cost-effective price for them. 6% Of residents are willing to pay $7000-$11000 which is a little
more than the range the majority chose. 2% are willing to pay above the average man which is
$12000-$15000. None of the residents have chosen to pay $16000-$20000 for the recycled
furniture.

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Figure 3

Introduction of a New Product

60

50

40

30

20

10

0
Yes Maybe No

Opinions

A Column Chart showing the opinions of residents whether or not to introduce a new product by
the second year. 60% of residents are agreeing to increase production in the second business year.
28% are undecisive whether to continue or to stay at two products while 12% are voting to stick
with two products.

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Analysis of Results
Product characteristics- The products being produced are tyre chairs and tables. They will be
built determining on customers preference and style. The recycled chair will be made with a back
brace and handles for comfort and may have knitting work on the sides for the extra look, providing
if that is what the customers like. When product is finished there will be free delivery.

Market Analysis- Since there is only one competitor in the market, the competition will not be
high but it may be difficult to gain customers when now entering market since the other business
has already been established. The product being produced has a slight edge over the competitors
product which can help to increase customers buying choice.

Sales Analysis- Potential yearly sale ((71*8000=568,000)+(3*2500=7500)=575,500). There

will be no sales trend since this since there is no particular time in the year that persons may want
to purchase product because it can be consumed at any time.

Customer analysis- The customers that will be targeted are person living in Georgetown.
Population of ages 18 to 50 both male and female, married or single to be targeted. This product
will be made to their budget, style and comfort.

Promotional Strategy- The entrepreneur will be making a facebook page to showcase what is
offered, along with additional information about the business. There will be a broadcast of the
business over the radio station and there will be flyers printed to be shared amongst passersby in
town.

Pricing Strategy- With bundle pricing, the business can sell multiple products for a lower rate
than consumers would face if they purchased each item individually. Not only is bundling goods
an effective way of moving unsold items that are taking up space in your facility, but it can also
increase the value perception in the eyes of your customers, since you’re essentially giving them
something for free.

Competition- The business’s competitior is Bravo Arts. They occupy most of the market since
they were the only business providing recycled furniture. Their competitive advantage is that they
were about for more than 3 years so customers know what they provide and they may have

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customer loyalty. Also, they not only provide recycled goods but they also do body art for parties,
plays or photoshoots. They are located in the heart of the city and their prices are very high since
they were the only producers of the recycled furniture. The new business’s product will have
handles and a chair back on the product and the table top will be made of glass.

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Conclusion
In conclusion this analysis has achieved its purpose. This was to conduct a market research and
construct a business model to gain first-hand knowledge on the recycling business. This analysis
was also used to promote the preservation of the economy by reducing the wastage of tyres, which
residents saw as environmentally friendly. Another was to make residents of Georgetown more
environmentally friendly by selling the recycled products at a cost-effective price which most
residents agreed that $3000-$6000. And lastly, to start production with two ideas of recycled
products and increase to four products in the second financial year. More than half of the residents
surveyed agreed that production should be increased.

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Business Model

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History of Venture

Recycling is the process of converting waste materials into new materials and objects. It is an
alternative to "conventional" waste disposal that can save material and help lower greenhouse
gas emissions (compared to plastic production, for example). Recycling can prevent the waste of
potentially useful materials and reduce the consumption of fresh raw materials, thereby
reducing: energy usage, air pollution (from incineration), and water pollution (from landfilling).

Rubber has been recycled for about a century, but the market has greatly expanded. In the past two
decades due to an increased demand for scrap tires in a wide range of settings, including in
hospitals, agriculture, sports, playgrounds, infrastructure, and even household items. Much of this
rubber comes from end-of-life or unwanted old tires that are no longer functional due to wear or
damage, and can no longer be re-treated or re-grooved. These tires were often found dumped in
bodies of water, in abandoned lots, and along roadsides, but today are recycled at a 90 percent rate.
Thanks to innovations in manufacturing, recycled rubber is now used to make new tires,
playground surfaces, equestrian mats, and rubberized asphalt—among other products,

In Guyana tyre recycling is done on a small scale. The researcher has decided to help expand this
scale and become an entrepreneur because she wants something to call her own in future. So she
brainstormed and came up with idea of opening her own recycling tyre shop called "Aleen’s
Recycling Tyre Craft Shop ". She would be selling recycling tyre chairs and tables to persons
interested and the prices may vary determining on size, colour and style.

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Mission and Vision Statement
The Mission is:

 To promote community education and support a positive, respectful and safe environment
for continued waste reduction, reuse and recycling toward the goal of zero tyre wastage.

The Vision is:

 exists to responsibly collect and divert waste tyres while promoting the concept of zero
waste for the conservation of the environment.

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Objectives

 To promote the preservation of the economy by reducing the wastage of tyres while
making a monthly income of $18000-$40000.
 To make residents of Georgetown more environmentally friendly by selling the recycled
products at a cost-effective price of $4500-$8000 for the first two financial years.
 To start production with two ideas of recycled products and increase to four products in
the second financial year.
 To find out who will purchase the products created.
 To find out what customers expect in the intended product

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Value Proposition
To add value to this product three factors were focused on: customization, design and price.
The modern consumer believes in self-expression and individualism. They expect the products
they use to be an extension of their personality and a medium through which they can communicate
their values and priorities to the world. Providing the option to tailor the product to the consumer’s
preferences adds value for the customer. In recent times products have gained heavily on market
share through utilizing concepts such as mass customization or customer co-creation. Where
traditionally customization has resulted in prohibitively expensive products, today this option
provides the opportunity for customers to put their personal stamp on a product while still
providing economies of scale.

The design of product attracts a consumer to purchase it. So the business intends to design products
that are appealing to consumers, which will help to add value to that product when bought. This
may be by adding embroidery to the tyre for an extra uncommon look.

One of the most common elements a value proposition is based on is price. There are many
companies that enter into the market with the premise that they are providing a product or service
which is cheaper than the existing options in the market. However, organizations competing on
price, or in some cases, even offering free services, usually have different business models to
sustain the organization.

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Beneficiaries

A beneficiary of this business will be all tyre businesses who have been selling used tyres. Since
the government has implemented a new law that requires no selling of used tyres, the upcoming
business owner will be able to collect them and use for the production of recycled furnitures.

Another beneficiary would be the government because they will not have to pay persons to pick
up any lingering tyres off the road corners, instead it would be put to use by upcoming business
owner.

The environment would be another beneficiary because there will be no waste to pollute or affect
plant and water life in the environment.

Owners of vehicles are another beneficiary because, when their old tyres on their vehicle wants
renewing they do not have to throw them away or burn it but now may be able to give it to and
entrepreneur who has many uses for it.

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Operations
Since the business is based on the production of recycled tires into household products, it will be
benefiting the environment. This will decrease the waste around Georgetown and encourage a
beautiful environment.

The entrepreneur also opened an avenue for other businesses to dispose of their tyres when not
needed. This will decrease income spent on removing them from site and gained easy access to
recycled materials for the business to operate.

Since the government placed a ban on the selling of old tyres, they do not have to pay persons to
remove tyres or burn them, the new recycling business can now collect them and use it.

Since there will be a customization of products made then consumers may get to choose from a
wide range designs, which will be suited to their style and comfort and make an unique product.

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Product Differentiation
In the creation of this product, competitors were thought of. The entrepreneur had to think of
innovative ways to make the product outstand. The first addition would be the knitting work under
the seat. This would be there to prevent consumer from falling in, in the case that the seat is not
fixed properly. Unlike the competitors, there will be an addition of a chair back. This aims to
support good posture of the consumer and may prevent persons from falling. Ultimately, there will
be the addition of handles onto the sides of the chair. This will be for extra comfort.

In the creation of the table, glass will be used to be at the top. This adds a classy look to the style
and makes it more presentable.

The pricing of the competitors was very high since they were the only business in the market
producing that product. Since this business will now be entering it set a price based on
customers’ wants and needs, also to make a profit.

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Income Generation

Extend the Geographic Market Area- Many small businesses limit their marketing and sales
efforts to the immediate area surrounding the central location of their business. Expanding your
market increases your target population, in turn increases sales and revenue for the business. This
will lead to higher demands for the products and better image for the business.

Bundle Products- Since there will be a production of recycled tyre chairs and tables, they can be
both sold together instead of separately and consumers will now only pay one price. For which a
‘tie-in-discount’ will be placed on products. Consumers will now pay 25% lower than if the
products were purchased separately. If you sell products that naturally go together, or are used
for the same task or at the same times, consider selling them as a package.

The money provided by the revenue sources, family friends, angel investors and the bank will
enable the entrepreneur to fulfill the goal of the business and it will also enable the entrepreneur
to earn profits.

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Growth
"Diversifying is an excellent growth strategy, as it allows you to have multiple streams of
income that can often fill seasonal voids and, of course, increase sales and profit margins.
Diversifying will allow entrepreneur to produce and sell complementary products to the products
that are already in existence, (for e.g. stools or bins).

Expand to the internet- Having a website on the internet is very cheap and can help the business
to be known on a wider scale. When a business has a website they are able to display what they
sell by placing pictures, descriptions and prices on website. Communication with their
consumers is also efficient since they do not have to leave the comfort of their home. The
internet access also allows the business to access a larger target market since this is the 21st
century and almost everyone has access to internet and social media.

The entrepreneur will also create employment for a few unemployed persons in the community
which the business will be operating in.

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Financial Start-Up
It is absolutely necessary that you know how much start-up capital you need and where you will
get it before you go ahead and start providing your services. Start-up capital will be needed for
capital investments (money used by a business to purchase fixed assets, such as land, machinery,
or buildings) and working capital (capital which is used in its day-to-day trading operations,
calculated as the current assets minus the current liabilities).

When you have estimated how much start-up capital you need for your business, the next question
is: Where do you get that capital? You will need the full amount at the start because the money is
for initial investments and working capital for the first months in operation. The most important
types of start-up capital that will be needed are:

• Owner’s equity- (Owner's equity represents the owner's investment in the business minus
the owner's draws or withdrawals from the business plus the net income).

• Loans- (a sum of money borrowed that is expected to be paid back with interest).

• Grants- (a sum of money given by a government or other organization for a particular purpose).

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Cashflow Statement
Aleean’s Recycling
Cashflow Statement

For the 1st quarter year, For the 2nd quarter

2017 year, 2017
Cash Inflow
Sales 120,000 130,500
Beginning cash bal. 370,800
Loans 500,000
Grants 200,000
Cash Outflows 820,000 501,300
Purchases 113,200 109,800
Wages 90,000 90,000
Motor expense 36,000 38,000
Vehicle rental 135,000 135,000
Loan installment 75000 75,000
Net Inflow (449,200) (447,800)
Ending cash bal. 370,800 53,500

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Cashflow Statement
Aleean’s Recycling
Cashflow Statement

For the 3rd quarter year, For the 4th quarter

2017 year, 2017
Cash Inflow
Sales 154,500 173,000
Beginning cash bal. 53,500 (237,800)
Loans
Grants
Cash Outflows 208,000 (64,800)
Purchases 115,800 112,800
Wages 90,000 90,000
Motor expense 30,000 38,000
Vehicle rental 135,000 135,000
Loan installment 75,000 75,000
Net Inflow (445,800) (450,800)
Ending cash bal. (237,800) (515,600)

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Analysis of Cashflow Statement
This statement was based on the inflows and outflows of the business
on a quarterly basis.
In quarter 1, the ending cash balance was $370,800. This was led by
the sale of 15 items. A loan and grant would also be provided to help
start up the business operations. These were all comprised of the
outflows of the business. The business incurred several inflows which
purchases (the materials that were directly linked to the product),
wages (income entrepreneur pays themself) and vehicle rental and
motor expense (these were directly linked to the motor used at the
business) and a loan installment.
In quarter 2, there was a beginning cash balance of $370,800 which
was added to the sale of $130,500. There was no income for loan or
grant because it was used in the first quarter and the remainder would
be used in the second quarter. There were outflows which all came up
$447,800. And the ending cash balance was $128,500.
In quarter 3, there was an increase in sales by $24,000 because of the
sale of 3 items. Purchases were increased in the third quarter because
of production but motor expenses decreased. There was an ending cash
balance of negative $237,800, which meant the business was making a
loss by the third quarter.
In quarter 4, the business began with a loss of $237,800. Total net
flows were $450, 800 which also increased losses to $515,600. This
showed the business was running at aloss for the first year, which may
not be profitable.

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Bibliography
Book
Barringer, Bruce R and Ireland, R. Duane Entrepreneurship, Pearson Education Inc., Prentice
Hall, 2012

Websites
www.goinvest.gov.gy.com -December, 2017
www.recycledrubberfacts.org -December, 2017
www.cleverism.com -January,2018
www.entrepreneur.com -February, 2018

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