New Topic Title New Topic No. Title of New Info Need to Study
What is a business?
1.1
Factors of production
● Land – These are natural resources needed to produce goods and services. Examples include water, timber,
sand, minerals, metal ores, plants and animals. Hence, these are sometimes referred to as physical resources
● Labour – This refers to human effort used to produce goods and services. Hence, this is often referred to as
human resources.
● Capital – This refers to non-natural (or manufactured) resources used in the production process. Examples
include tools, machinery, motor vehicles, physical premises, and infrastructure. As these are all funded by
money, capital resources are sometimes referred to as financial resources.
● Entrepreneurship – This refers to the knowledge, skills and experiences of individuals who have the capability
to manage the overall production process. Entrepreneurs have the ability and willingness to take risks in order
to produce goods and provide services to customers, profitably.
Goods
● Primary sector
○ The primary sector involves extracting raw materials from the earth. It includes activities such as
agriculture, fishing, forestry, and mining for minerals, metals and oils.
● Secondary sector
○ The secondary sector involves transforming raw materials into finished or semi- finished products. It
includes construction, processing and manufacturing.
,Services
● Tertiary sector
○ The tertiary sector involves the delivery of services such as education, healthcare, travel and tourism,
entertainment and home and car repair services
● Quaternary sector
○ The quaternary sector includes services related to the developments and use of data and
information, it is a new term and is usually considered as a subset of the tertiary sector. Develops
apps and data analysis, Data collection.
For less developed economies:
● Primary sector is the best type of business
● secondary sector is the 2nd best type of business
● tertiary sector is the 3rd best type of business
● quaternary sector is the worst type of business
For economies that are developing but are still not strong:
● secondary sector is the best type of business
● primary sector is the 2nd best type of business
● tertiary sector is the 3rd best type of business
● quaternary sector is the worst type of business
For strong economies
● tertiary sector is the best type of business
● Secondary sector is the 2nd best type of business
● quaternary sector is the 3rd best type of business
● primary sector is the worst type of business
Entrepreneurship and intrapreneurship
, ● Entrepreneurs are individuals who create their own businesses from the ground up (Mark zuckerburg, Steve
Jobs, Elon Musk, Bill Gates, Etc)
● intrapreneurship - Is the activity of entrepreneurship when it takes place within an established organisation.
Intrapreneurs are encouraged by their employers to take risks to develop new products, processes, and services
while retaining their status as employees
Steps when starting a business
● Organising the basics
○ Location
○ Name
○ Slogan
○ Trademark
○ legal and operational structure
○ type of organisation
○ suppliers
○ potential market
● Researching the market
○ target market
○ unique selling points
○ market gap
○ competition
○ need assessments etc
● Planning the business
○ A business plan is usually a written document that describes all the aspects of a new enterprise in
terms of the product or business idea
➢ marketing
➢ finance
➢ operations
➢ human resources
● Elements of a business plan
○ In a business plan the following must be included
➢ what is your product or service
➢ who will be your customers
, ➢ are there competitors
➢ type of ownership
➢ organising the business
➢ how to produce product or service
➢ what investments are needed
➢ how are you going to finance the equipment
● Establishing legal requirements
○ tax obligations
○ labour and operational practices
○ registrations
○ licence and certification
● Raising the finance
○ Entrepreneur's investment and other sources-
➢ share capital
➢ angel investors
➢ Loan capital
➢ venture capitalist
● Test the market
○ assess the probability of success and adapt to the customers taste and preference
● Problems that new businesses face
○ lack of funding
○ strong competitors
○ recruiting qualified personnel
○ Lack of management skills
Planning the business
● Business plan- the document that addresses all the issues that need to be planned before operations begin
● It provides confidence for investors/ financiers
● shows the structure approach to a start-up, given the consideration for all the possible aspects of a business
which minimises the risk of failure
What is a business?
1.1
Factors of production
● Land – These are natural resources needed to produce goods and services. Examples include water, timber,
sand, minerals, metal ores, plants and animals. Hence, these are sometimes referred to as physical resources
● Labour – This refers to human effort used to produce goods and services. Hence, this is often referred to as
human resources.
● Capital – This refers to non-natural (or manufactured) resources used in the production process. Examples
include tools, machinery, motor vehicles, physical premises, and infrastructure. As these are all funded by
money, capital resources are sometimes referred to as financial resources.
● Entrepreneurship – This refers to the knowledge, skills and experiences of individuals who have the capability
to manage the overall production process. Entrepreneurs have the ability and willingness to take risks in order
to produce goods and provide services to customers, profitably.
Goods
● Primary sector
○ The primary sector involves extracting raw materials from the earth. It includes activities such as
agriculture, fishing, forestry, and mining for minerals, metals and oils.
● Secondary sector
○ The secondary sector involves transforming raw materials into finished or semi- finished products. It
includes construction, processing and manufacturing.
,Services
● Tertiary sector
○ The tertiary sector involves the delivery of services such as education, healthcare, travel and tourism,
entertainment and home and car repair services
● Quaternary sector
○ The quaternary sector includes services related to the developments and use of data and
information, it is a new term and is usually considered as a subset of the tertiary sector. Develops
apps and data analysis, Data collection.
For less developed economies:
● Primary sector is the best type of business
● secondary sector is the 2nd best type of business
● tertiary sector is the 3rd best type of business
● quaternary sector is the worst type of business
For economies that are developing but are still not strong:
● secondary sector is the best type of business
● primary sector is the 2nd best type of business
● tertiary sector is the 3rd best type of business
● quaternary sector is the worst type of business
For strong economies
● tertiary sector is the best type of business
● Secondary sector is the 2nd best type of business
● quaternary sector is the 3rd best type of business
● primary sector is the worst type of business
Entrepreneurship and intrapreneurship
, ● Entrepreneurs are individuals who create their own businesses from the ground up (Mark zuckerburg, Steve
Jobs, Elon Musk, Bill Gates, Etc)
● intrapreneurship - Is the activity of entrepreneurship when it takes place within an established organisation.
Intrapreneurs are encouraged by their employers to take risks to develop new products, processes, and services
while retaining their status as employees
Steps when starting a business
● Organising the basics
○ Location
○ Name
○ Slogan
○ Trademark
○ legal and operational structure
○ type of organisation
○ suppliers
○ potential market
● Researching the market
○ target market
○ unique selling points
○ market gap
○ competition
○ need assessments etc
● Planning the business
○ A business plan is usually a written document that describes all the aspects of a new enterprise in
terms of the product or business idea
➢ marketing
➢ finance
➢ operations
➢ human resources
● Elements of a business plan
○ In a business plan the following must be included
➢ what is your product or service
➢ who will be your customers
, ➢ are there competitors
➢ type of ownership
➢ organising the business
➢ how to produce product or service
➢ what investments are needed
➢ how are you going to finance the equipment
● Establishing legal requirements
○ tax obligations
○ labour and operational practices
○ registrations
○ licence and certification
● Raising the finance
○ Entrepreneur's investment and other sources-
➢ share capital
➢ angel investors
➢ Loan capital
➢ venture capitalist
● Test the market
○ assess the probability of success and adapt to the customers taste and preference
● Problems that new businesses face
○ lack of funding
○ strong competitors
○ recruiting qualified personnel
○ Lack of management skills
Planning the business
● Business plan- the document that addresses all the issues that need to be planned before operations begin
● It provides confidence for investors/ financiers
● shows the structure approach to a start-up, given the consideration for all the possible aspects of a business
which minimises the risk of failure
