BUSINESS ENTERPRISE COMPLETE NOTES

Drivers towards enterprising

✓ These are the factors that pushes one to develop an enterprise

Government
policies

Well thought
community business idea
Drivers
towards
Enterprising Self
Inheritance
Actualisation

Demorgraphic
and Economic
changes

Government policies
Def.: This is a course or principle of action adopted or proposed by a state is used to govern
the state
Def.: these are rules, laws or regulations that are enacted by the government in order to
govern the state.
✓ As the government implements the policies, they will be divided into two categories
namely:
➢ Policies that promote success of enterprising
➢ Policies that hinders success of enterprising
Policies that promote success of enterprising – these are policies that ensure the success of
the enterprises such as the following.
➢ Taxation – government can allow enterprises to operate without paying taxes
[it allows tax holidays to enterprises since some enterprises pay double taxes
e.g. tax on profits and tax on dividends. Less taxation will mean the businesses
will have more profits retained and increasing its capital base with readily
available and cheap capital hence enterprise success.

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 ➢ Registration process – it’s a requirement by the law in accordance with the
company’s act that enterprises should operate when they are registered, the
legal formalities can be expensive for small scale enterprises e.g. trading
licence. Some legal formalities are expensive and cumbersome to attain
especially those of companies, they are too many:
▪ Articles of association
▪ Memorandum of association
▪ Certificate of incorporation
▪ Certificate of trading
▪ The government should ease up on the documentation of enterprises so
as to promote their existence and success.
➢ Interest rates – these rates are set by the government hence low interest rates
will mean small businesses can borrow and pay back without being ripped all
the profits hence they can retain them and improve their capital structure.
➢ Training and development – the government can offer training to enterprises
so as to improve their skills set in managing the business. Trained personnel
results in quality products and services hence the enterprise enjoys competitive
advantage over its competitors. training also reduces the risks of injuries hence
reducing unnecessary costs that would have been incurred by the enterprise.
➢ Research – the government should encourage universities o develop research
labs and make the available to enterprises. They will research on consumer
tastes and preferences, consumer demand hence providing what the consumers
want rather than what they can buy.
➢ Business idea and support – the government can ensure that the enterprises
have seminar sessions where they receive advice and support offered from
experienced entrepreneurs such as Strive Masiyiwa just to mention a few.
➢ Unemployment rate – if the government strives to maintain a low
unemployment rate this will mean consumers will have more buying power
hence this will mean consumers can buy more products thereby promoting
success of the business.
➢ Inflation rate – low inflation rates tend to encourage business growth since
returns on investments will be favour arable and lures investors hence this will
lead to flourishing of the business and growth of the business. All in all this
increases the marginal propensity to spend of consumer there by buying more.
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 ➢ Exchange rates - stable exchange rates within the country tends to promote
business growth and success, companies will be able to acquire raw materials
from other countries e.g. Toyota, G-tel, Foton. More so, it enables consumers
to spend mor.
➢ Ownership and control policies – the government can allow businesses to
operate with minimum intervention, more so, it can reduce the ownership %
they claim from businesses from 51% to a lower % that is attractive to the
various stakeholders.
➢ Demographic changes – these are influenced by changes in human population
such as fertility rate, mobility [permanent or temporary], life expectancy just
to mention a few. All the above stated will affect demand of products and
services of a particular organisation or organisations. Since human s are
dynamic animals their tastes and preferences change with time for example
location of the individuals, type of products, level of spending and buying
behaviours change hence affecting business success either positively or
negatively.
➢ Well thought business idea – a well thought idea instils confidence in investors
and the directors of the business. This will enable the business to access loans
since it will be well laid out and shows a profitable future
➢ Inheritance – majority of individuals have inherited large amounts of assets
which they end up investing so as to get returns on their investments. Hence it
becomes a driving force towards enterprise start-ups.
➢ Self-actualisation - this is a difficult level to reach since if a single need is
satisfied then one needs to satisfy another need. This is known as the level of
elf contentment. As one sees his/ her business idea flourish that sense of self
contentment, as one reaches full potential.
➢ Community – the mentality of providing the community with better products
and services, to ensure that the standards of living of the community will drive
one to be an entrepreneur. Strive Masiyiwa is helping the Zimbabwean
community through Scholarships

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BUSINESS ENTERPRISE POSSIBLE QUESTIONS
explain the concept of enterprising
identify skills and personal attributes needed to run an enterprise
explain skills and personal attributes of a good enterpriser
apply leadership skills in a given project
identify the benefits and drawbacks of enterprising
explain the role of an enterpriser in an enterprise
list the drivers towards enterprising
explain the different drivers towards enterprising
evaluate drivers towards enterprising
􀁸 State characteristics of an entrepreneur
􀁸 Analyse advantages and disadvantages of being an entrepreneur
􀁸 Discuss importance of enterprise skills
􀁸 Assess the importance of enterprise skills to the economy
􀁸 Analyse management functions
􀁸 identify on effective management skills
􀁸 Describe importance of management functions
􀁸 identify ethical considerations in business
􀁸 Describe the role of ethics
􀁸 Analyse importance of ethics in business
􀁸 Cite unethical conduct in business
􀁸 List contents of a business plan
􀁸 Describe contents of a business plan
􀁸 Craft a business plan of a business of your choice
􀁸 identify business ideas
􀁸 List different types of Intellectual Properties
􀁸 Describe types of intellectual properties
􀁸 Propose solutions to intellectual properties infringements
􀁸 Explain functions of Zimbabwe Patents office
􀁸 identify areas where of the African Regional International Property Organisation (ARIPO)
and Zimbabwe Patents Office are located

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