Summary
Summary BSM1602 STUDY NOTES
- Course
- Institution
- Book
Complete summarised notes
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
ETP3702 2024 Assignment 5 Semester 2
-
ETP3702 Assignment 5 Semester 2 2024 (ANSWERS)
-
MNE2601 Assignment 4 (ANSWERS) Semester 2 2024 - DISTINCTION GUARANTEED
Seller
Follow
iStudy
Reviews received
Content preview
BSM1602NOTES
,Business Management Complete Chapters Study Notes
CHAPTER 1 – INTRODUCTION TO BUSINESS MANAGEMENT FOR ENTREPRENEUR
Introduction
o Creation of enterprise consists of three stages:
(a) Idea Stage:
Entrepreneur identifies need for product/service in market.
(b) Planning Stage:
Entrepreneur conducts viability study – in-depth investigation of market and profit potential
of idea.
(c) Implementation Stage:
Entrepreneur starts enterprise by using four factors of production (entrepreneurship,
capital, labour and natural resources) to provide products/services to satisfy consumers'
needs.
o When entrepreneur starts business – usually small.
o Starting, managing and growing business – opportunity to create something new and develop it so
that it remains entrepreneurial business.
o Entrepreneurship creates new challenges – taking risks and responsibility for business, employees
and other stakeholders.
o Many risks and uncertainties but also opportunities, job satisfaction, financial rewards and sense
of achievement and recognition.
o Successful entrepreneurs – start business in field where they have interest, knowledge or
experience.
o Direct link between success of business and passion and expertise of entrepreneur in that type of
business.
o Knowledge about right product(s) or service(s) when establishing business is essential.
o Business management skill are equally as important.
Entrepreneurship and Business
o In context of South African economy – production factor of entrepreneurship is pivotal for
development and growth of economic systems.
o Importance of entrepreneurship has been widely recognised in South African, with government
authorities making enormous efforts to identify entrepreneurs, provide them with capital,
stimulate businesses, assist development and make it easier for them to enter business.
Entrepreneur vs Manager
o Entrepreneur:
, Spots opportunities and organise resources to create new business.
Have vision, business skills and courage to take risks and possess necessary leadership
qualities to overcome problems.
Normally have strong internal locus of control, self-confidence, passion, determination and
management skills to plan and control entrepreneurial process.
Manages change by introducing new product, buying new business, deciding what risks to
take, introducing new management systems and moving into new markets.
o Small business tend to swing in and out of periods of entrepreneurial change over time –
consolidation may take place.
o What is a small business?
According to National Small Business Amendment Act 26 of 2003 – separate and distinct
business entity, including cooperative enterprises and non-governmental organisations,
managed by one owner or more which, within its branches or subsidiaries, if any, is
predominantly carried on in any sector or sub-sector of economy.
Small businesses can be classified as follows:
Class Full-time employees Annual turnover Total gross asset value
(property excluded)
Micro-enterprise <5 <R150 000 R100 000
Very small *6 – 20 *R0.4m – R4m *R200 000 – R1.5m
Small *21 – 50 *R5m – R25m *R1m – 4.5m
Medium *51 – 200 *R4m – R50m *R2m – R1m
*Minimum and maximum figures depends on economic sector in which business operates.
o Small business managers:
Have to manage.
Management – process of ensuring that business achieves its goals and objectives.
Management of small business on day-to-day basis.
Includes tasks in all functional areas – marketing, purchasing, operations, finance, humans
resources, administration and public relations.
Also business management function – involves coordination of all business functions.
Fundamental tasks include:
" Planning – needed in long, medium and short term.
" Organising – taking decisions on how to divide up work that is to be completed.
" Leading – effective supervision and motivation of employees.
" Controlling – monitoring performance, comparing what should have been done with
what was actually done. Correct action should be considered if gap found to exist.
, Effective management – getting things done through other people and not doing everything
yourself, and ensuring that tasks are accomplished and customers and employees are
satisfied.
If small business is successful, entrepreneurship and good small business management go
hand in hand – two cannot be separated from each other.
Entrepreneur Business Manager
Starts own enterprise Manages enterprise
Takes risks Does not have to take risks
Creative and innovative Creativity and innovation not required
Responsible for growth Responsible for profit and survival
Small Business Management
o Competencies are essential to ensure success of small business, especially financial success.
o Success of any business – depends on individuals involved in organisation.
o In South Africa – small business fails due to lack of capital and insufficient management,
marketing, technical and negotiation skills.
o Vast majority of business initiated by entrepreneurs originate as micro or small business.
o Usually started and entrepreneurially managed by one person.
o Can grow and become larger small business or medium or large businesses – provided that
entrepreneur does not become primarily managerially oriented but remains entrepreneurially
oriented.
o As business grows, entrepreneur appoints more people.
o Entrepreneur cannot be everything in business and needs to employ people to assist in making
business successful.
o Business can grow further by increasing production or introducing new investments through
mergers and acquisitions.
o Entrepreneurial businesses usually started and managed by entrepreneurs who strive to grow
business to become medium-sized or large businesses.
o Entrepreneur different from manager and is usually person with good ideas.
o Not all entrepreneurs know how to manage business and frequently fail at later stage due to
inability to adapt to changing need of business.
o Need for more managerial style becomes important when business has grown and no longer
micro- or very small business.
o Continued success of entrepreneurial business – determined by ability of entrepreneur to manage
and lead business through different stages of development.
o True entrepreneurs – has intention to grow business and ability to manage it.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller iStudy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.84. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now