BSTD

GRADE 11
TERM 3
BUSINESS VENTURES
TOPIC 1: ENTREPRENEURIAL QUALITIES
o One of the major elements contributing to business failure is the lack of
entrepreneurial qualities.
o Entrepreneurs are responsible for combining the other three factors of
production (labour, capital and natural resources).
o Although all entrepreneurial qualities are important, some qualities will
lead you to success, while others will not.
o For every successful venture, there are many successful business
ventures.
o One of the reasons is that all entrepreneurial qualities are not
necessarily good qualities.
o Entrepreneurs have a tendency to do too many projects at once.
o Although entrepreneurs are resourceful, they may use much energy to
react to a crisis.
o Entrepreneurs often work too many hours, thereby compromising their
relationship and good health.
o Important entrepreneurial qualities are:

Desire for responsibility

 Entrepreneurs like to prove themselves as being innovative and hard
working.
 Entrepreneurs are responsible for creating their own income.

Take risks
 Risks involve a degree of uncertainty.
 There are many examples of risks.
 Financial security risk of a day job to start their own business
 Risk to borrow money to grow their business
 Risk to change the image of their business
 Risk of taking a new partner in
 These risks are known as calculated risks.

Source: Head for success super study guide

Perseverance
 To persevere means to keep trying until you reach your goal.
 Usually, this does not happen with the first or second attempt.
 Most successful entrepreneurs worked very hard to build their
businesses.

Good management and leadership skills

 Entrepreneurs must be capable of inspiring other people to believe in
their vision.
 Entrepreneurs must also have the skills to manage their own
businesses.

Confidence in one’s ability to succeed

 If you want to start your own business, you must believe in yourself.
 But it is very important not to have a false sense of confidence.
 You must know your own strengths and weaknesses very well before
starting your own business.

High levels of energy

 Most entrepreneurs, when first starting out, have to do
everything themselves.
 This requires a lot of energy.
 Entrepreneurs can easily burn out because of their workload.

Passion
 You cannot start a business if you are not passionate about your
business and your product.
 Being passionate about something means you love doing it.
 Entrepreneurs spend most of their time thinking about their
businesses, managing their businesses and working on their
businesses.
 Lack of passion will result in poor service delivery and eventually
the downfall of the business.

Dreams with a clear vision

Source: Head for success super study guide

  Starting and running a business does not end with having a
good idea.
 Entrepreneurs need to possess organisational skills to manage
their businesses on day-to- day basis.
 Examples of organisational skills include administrative skills, time
management skills and people management skills.

High degree of commitment

 Being committed means to see something through despite
difficulties.
 If you want to make a success of your business, you have to
work very hard.
 Entrepreneurs must be willing to make sacrifices to build their
businesses.

Flexibility
 Entrepreneurs are part of the business environment.
 The business environment is dynamic – this means that the
business environment is constantly changing.
 Entrepreneurs must be flexible to adapt to these changes.

Willpower to overcome obstacles

 Entrepreneurs face many obstacles, for example employees who
resign, changing laws, financial difficulty and new competitors.
 Entrepreneurs who lack the willpower to overcome obstacles do
not last very long.

1.1 Key success factors that make a business venture successful

 A business venture refers to an undertaking that involves some risk
(e.g. time or money) but the entrepreneur hopes to make a profit.
 There are many factors that help to contribute to a business
venture’s success, including:

Success
Explanation
Factors
Sustainability  Successful businesses are sustainable.

Source: Head for success super study guide

  This means that the business can contribute to exist
despite all the challenges and threats it is confronted
with.

 Money is managed in such a way that investors can

be guaranteed a good return on investment.
 This attracts even more investors, which enables the
Profitability
business to expand its activities and to become even
more profitable.

 Successful businesses have a continuous customer

base to sell their goods and services to.
Customer
 Successful businesses are always on the lookout for
base
ways to expand their customer base

 Goods and services must fulfill the needs and desires

A sound of consumers.
business  A successful business has to offer better goods and
idea services than its competitors.

 Competent workers are experts in their fields,

Competent they are motivated and productive and they
workers contribute towards the success of the
enterprise.

 A clear vision will provide the business and its

employees with direction regarding where they
are headed.
Vision
 A clear vision will ensure that a business is
always looking for ways to improve.

 Businesses are constantly subjected to changes

such as:

Ability to adapt to o New legislation

change o Competitors
o Political changes
o Managerial change
o Change can be threatening.

Source: Head for success super study guide

 o Successful businesses can anticipate,
implement and adapt to change by turning
threats into opportunities.

Goods and  A business that delivers goods and services of

quality will attract and retain customers.
services of quality
 Successful businesses are always looking for
Keeps looking for ways to improve and expand.
 Ways to expand include finding new markets
new opportunities
and developing new products.

1.2 Areas of improvement

 Running a business is a continuous process that requires

management to constantly come up with ideas for improvement.
 One of the tools that business owners use to identify areas for
improvement is the SWOT-analysis.
 Business enterprises comprise several departments / functions.
 Areas of improvement in the different departments include:

Functions How improve the various functions

 Find better suppliers
Purchasing  Only purchase products of good quality

 Ensure that the area where production takes places

adheres to safety regulations
Production  Investigate new technology that can improve
productivity

 Ensure that the business receives sufficient good

publicity
Public
 Provide staff training to ensure that phones are
relations
answered promptly and professionally

Source: Head for success super study guide

  Offer incentives to increase productivity
General  Constantly evaluate the enterprise’s performance
Management against pre-determined goals

 Draw up budgets to ensure the availability of

sufficient funds for marketing purposes
Marketing  Market the enterprise in a way that makes the
product appealing to the target market

 Recruit employees that are experts in their fields

Human  Provide regular staff training so that staff members
resources are up to date with their latest trends and technology

 Look out for ways to improve IT-systems

Administrative
 Draw up budgets to make sure that all expenses are
accounted for
Financial  Spend money on projects that are most likely to be
profitable

Source: Head for success super study guide