This document discusses different forms of business organization including sole proprietorships, partnerships, and corporations. Sole proprietorships are owned and operated by one individual who has unlimited liability. Partnerships involve two or more co-owners who may have either limited or unlimited liability depending on the type of partnership. Corporations have a legal identity separate from their owners and ownership is divided into shares. The document compares the advantages and disadvantages of each form.
In the agricultural sectors of emerging economies such as India, capital is king. It dictates power and ownership and therefore providers of capital capture the lion’s share of surpluses created in agribusiness value chains. Now a new investment model which employs Participative Capital is challenging the status quo. The concept was developed by community-led initiative Just Change, and is the first plan of its kind which links producers, consumers and investors to ensure more equitable and sustainable economic systems. This participatory model allows for investments to be made in a manner where ownership, benefit and risk are shared by all participants.
In November 2011, 25 executives from 12 countries representing 15 organisations spent a week in India to produce a viable plan for Just Change to operationalise Participative Capital. This diverse group was comprised of emerging leaders from countries including Japan, India, Nigeria, and Malaysia nominated by global companies such as FedEx, BASF, NEC, Orix and Infosys.
The business plan presented to JCI focussed on creating a new independent operating company with the governance structure that would allow the participation of producers, consumers and investors in the production and sales of tea and paddy - a model that was created with the means to be used for other commodity products.
Problems and prospects of agri entrepreneurship in indiaSAMEER LAKHANI
To discuss the concept and importance of Agrientrepreneurship.
To discuss the potential areas and opportunities for Agrientrepreneurship.
To discuss the various forms of Agrientrepreneurship.
To discuss the problems of and future strategies for promoting Agrientrepreneurship.
In the agricultural sectors of emerging economies such as India, capital is king. It dictates power and ownership and therefore providers of capital capture the lion’s share of surpluses created in agribusiness value chains. Now a new investment model which employs Participative Capital is challenging the status quo. The concept was developed by community-led initiative Just Change, and is the first plan of its kind which links producers, consumers and investors to ensure more equitable and sustainable economic systems. This participatory model allows for investments to be made in a manner where ownership, benefit and risk are shared by all participants.
In November 2011, 25 executives from 12 countries representing 15 organisations spent a week in India to produce a viable plan for Just Change to operationalise Participative Capital. This diverse group was comprised of emerging leaders from countries including Japan, India, Nigeria, and Malaysia nominated by global companies such as FedEx, BASF, NEC, Orix and Infosys.
The business plan presented to JCI focussed on creating a new independent operating company with the governance structure that would allow the participation of producers, consumers and investors in the production and sales of tea and paddy - a model that was created with the means to be used for other commodity products.
Problems and prospects of agri entrepreneurship in indiaSAMEER LAKHANI
To discuss the concept and importance of Agrientrepreneurship.
To discuss the potential areas and opportunities for Agrientrepreneurship.
To discuss the various forms of Agrientrepreneurship.
To discuss the problems of and future strategies for promoting Agrientrepreneurship.
India‟s Economy is principally dominated by Agriculture with more than 70% population dependent onagriculture. It accounts for about 14 % of Gross Domestic Products of the country. India being predominantly agricultural, agripreneurs play very vital and important role in the agricultural value chain. They contribute significantly to increase the agricultural GDP by the process of their value addition. In order to tap the untapped potential rich and unexplored rural resources, agripreneurship has a huge scope. Significant growth in manufacturing and service sectors is contributing for the better living conditions and lifestyle of urban population whereas agriculture and allied sectors are still in back foot in providing the better living conditions in rural India. This paper highlights the issues and challenges in agripreneurship.
Farm-Firm Linkages Through Contract Farming in IndiaExternalEvents
The presentation hihglights how contract farming may be a successful tool to link farmers to markets. It shows successful cases of contract farming ventures in India
How, When and where agribusiness marketing management effective and efficient?Awais Sandhu
How, Where and when agribusiness marketing management business effective and efficient?
M. Awais Sandhu
Mba 3.5y
03007271202
University of Agriculture Faisalabad
Market Research Report : Snacks market in india 2013Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
The new report, ‘Snacks Market in India’, states that the Indian snacks market is experiencing rising demand due to various driving factors which in turn is providing immense opportunities to manufacturers to grow and operate in the market lucratively.
The Indian food and beverage sector is huge and highly competitive in nature. The industry comprises of several sub-sectors such as fruits & vegetables, meat & poultry, dairy, marine products, grains and consumer foods. Snack is one of the major segments of the packaged food division, which comes under the broad category consumer foods. Though the snacks market in India is dominated by the unorganized sector, the organized sector has shown remarkable growth in terms of market share in the last few years.
The report provides a snapshot of the Indian snack industry which has witnessed several changes since 1995. In the initial years, the market was dominated by two players – traditional snacks player Haldiram and ‘Uncle Chips’ manufacturer Amrit Agro. Later on, with the entry of global beverage and snacks player PepsiCo, the market dynamics changed completely. Now, the market is dominated by PepsiCo with its wide range of product portfolio. The other major players include Parle Agro, ITC, Parle Products, Balaji Wafers and Parle Wafers among others. A number of regional players have also entered the market in the last few years and are giving tough competition to the big players.
D v deshpande in namibia on self help & group models for sustainable and incl...Dr Dilip Vishnu Deshpande
I was invited by AARDO (Afrcan Asian Rural Deelopment Orgnisation) to address a National workshop in Namibia from 10-14 June'19. This is a presentation I used there. (for economy of size of file, the videos which were hyperlinked have not been uploaded)
India‟s Economy is principally dominated by Agriculture with more than 70% population dependent onagriculture. It accounts for about 14 % of Gross Domestic Products of the country. India being predominantly agricultural, agripreneurs play very vital and important role in the agricultural value chain. They contribute significantly to increase the agricultural GDP by the process of their value addition. In order to tap the untapped potential rich and unexplored rural resources, agripreneurship has a huge scope. Significant growth in manufacturing and service sectors is contributing for the better living conditions and lifestyle of urban population whereas agriculture and allied sectors are still in back foot in providing the better living conditions in rural India. This paper highlights the issues and challenges in agripreneurship.
Farm-Firm Linkages Through Contract Farming in IndiaExternalEvents
The presentation hihglights how contract farming may be a successful tool to link farmers to markets. It shows successful cases of contract farming ventures in India
How, When and where agribusiness marketing management effective and efficient?Awais Sandhu
How, Where and when agribusiness marketing management business effective and efficient?
M. Awais Sandhu
Mba 3.5y
03007271202
University of Agriculture Faisalabad
Market Research Report : Snacks market in india 2013Netscribes, Inc.
For the complete report, get in touch with us at : info@netscribes.com
The new report, ‘Snacks Market in India’, states that the Indian snacks market is experiencing rising demand due to various driving factors which in turn is providing immense opportunities to manufacturers to grow and operate in the market lucratively.
The Indian food and beverage sector is huge and highly competitive in nature. The industry comprises of several sub-sectors such as fruits & vegetables, meat & poultry, dairy, marine products, grains and consumer foods. Snack is one of the major segments of the packaged food division, which comes under the broad category consumer foods. Though the snacks market in India is dominated by the unorganized sector, the organized sector has shown remarkable growth in terms of market share in the last few years.
The report provides a snapshot of the Indian snack industry which has witnessed several changes since 1995. In the initial years, the market was dominated by two players – traditional snacks player Haldiram and ‘Uncle Chips’ manufacturer Amrit Agro. Later on, with the entry of global beverage and snacks player PepsiCo, the market dynamics changed completely. Now, the market is dominated by PepsiCo with its wide range of product portfolio. The other major players include Parle Agro, ITC, Parle Products, Balaji Wafers and Parle Wafers among others. A number of regional players have also entered the market in the last few years and are giving tough competition to the big players.
D v deshpande in namibia on self help & group models for sustainable and incl...Dr Dilip Vishnu Deshpande
I was invited by AARDO (Afrcan Asian Rural Deelopment Orgnisation) to address a National workshop in Namibia from 10-14 June'19. This is a presentation I used there. (for economy of size of file, the videos which were hyperlinked have not been uploaded)
Farming Systems Research was introduced and further developed by researchers to deal with the perceived inadequacies of previous approaches. Despite the broad range of insights and approaches to inquiry developed under the umbrella of Farming Systems Research, it is clear that earlier approaches (e.g. disciplinary approaches, focus on transfer of technology within the agricultural extension system) still dominate. Farming Systems Research and Extension (FSR/E) is an approach to improving the lot of rural households which attempts to identify important farmer problems, assist to increase Use efficiency of solving these problems, and finally, assist to disseminate solutions to groups of farmers via extension It is used to describe arrange of activities with varied objectives and approaches, although these usually have been associated with agricultural research. This diversity has caused confusion over the role of FSR in agricultural development.
Business Environment, Legal and Business Environment, JNTU Kakinada, Unit I, Introduction to Business Environment. Internal Environment, External Environment
Introduction to International BusinessAshwin Kumar
Introduction to International Business is a comprehensive study of the various aspects of International Business. This presentation will provide better insights into the definition, nature, scope, characteristics, approaches, reasons, advantages and disadvantages.
LECT-8-Global Environment In Corporate Strategy.pptxdebajanipalai
Global Environment:
Global environment is the most vital component of macro environment.
It refers to operating in more than one country in the world & gain its R & D, production, marketing & financial advantages in terms of cost & reputations that are not available to domestic competitors.
Globalization of markets refers to the process of integrating & merging of world markets into a single market. This process involves the identification of some common norm, value, taste, preference & cultural shift towards the use of common product or services.
The Example of products having global acceptance are: Coca-Cola, Pepsi, Mc Donald’s, Citicorp Credit cards etc.
Characteristics of Global Environment:
Global Environment treats the whole world as a common village focuses on how organizations are related to each other.
It consists of a set of fresh beliefs, working methods, economic, political and socio-cultural relatives in business.
It integrates the world economy & opens scope for new potential of huge market.
It intends to remove all global barriers among countries.
Global Company:
Global company is a firm which having multiple units that are located in different parts of the world, but all are being linked by common ownership of umbrella.
Global multiple units draw a common pool of resources like: money, credit, information, patent, trade name & control system.
Its shareholders & human capital are of different nations. The company follows common strategy to sell its products in most of the countries.
Reasons For Globalization:
The large scale industries have mass production. So they focus on foreign market.
They try to reduce the risk of diversity of portfolio of countries.
Companies globalize markets in order to increase their profits & achieve goals.
The adverse business environment in the home country pushes the companies to globalize their market.
The failure of domestic companies in catering the needs of their customers pulled the foreign countries to market their products.
It is particularly important to industries which are directly depending on imports & exports.
Advantages Of Globalization:
Free flow of capital & increase in the total capital employed.
Free flow of technology from developed countries to developing countries.
Increase in industrialization.
Spread production facilities throughout the globe.
Balanced development of world economies.
Increased in production & consumption of outputs.
Commodities available at lower price with high quality.
Cultural exchange & demand for a variety of products in foreign market.
Increase in job opportunities & income for the country along with welfare & prosperity.
Disadvantage Of Globalization:
Globalization kills domestic small business firms.
It exploits human resources in global firms.
It leads to unemployment & underemployment in developing countries.
It declines income & standard of living due to unemployment & increases high gap between rich & poor.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
1. DAH 208:INTRODUCTION TO AGRIBUSINESS
Topic 1:The concept of agribusiness
• THE BUSINESS IN THE AGRICULTURE
INDUSTRY .
2. The concept of agribusiness
• collective business activities that are
performed from farm to consumer.
• Supply of agricultural inputs,
• The production and transformation of
agricultural products and
• Their distribution to final consumers
3. The concept of agribusiness
• Characterized by raw materials that are mostly
perishable, variable in quality and not regularly
available.
• The sector is subject to stringent regulatory
controls on consumer safety, product quality and
environmental protection.
• coordinated and better planned linkages between
agribusiness firms, farmers, retailers and others
in the supply and value chains are highly needed.
4. The concept of agribusiness
This broader concept of agribusiness covers.
• Agricultural production and propagation of
animal, animal products, plants, plant
products, forests, and forest products, fish and
fish products.
• The provision of services associated with
agricultural production and the manufacture
and distribution of supplies used in
agricultural production.
5. The concept of agribusiness
• The design, installation, repair, operation, and
servicing of machinery, equipment, and power
sources, and the construction of structures
used in agricultural production.
• Any activities related to the inspection,
processing, and marketing of agricultural
products and primary by-products.
• Any aspects of nursery, landscaping, parks and
other ornamental horticultural operations.
6. The concept of agribusiness
• The conservation, propagation, improvement,
and utilisation of renewable natural resources.
• The multiple uses of forestlands and
resources.
7. Why study agribusiness?
• Increased opportunity for economic growth
• Creates new areas of employment
• Opens chances for learning new skills
8. Agribusiness sub sector
The input-supply sub-sector
• Animal Feeds
• Seed, Fertiliser and Chemicals
• Electricity and Petroleum
• Farm machinery and equipment
• Livestock (breeder and feeder stock)
• Co-operatives
9. Agribusiness sub sector
• The farm production sector
• The hub of agribusiness, is the farm
production sector
• Dominated by many producers at different
scales of production and varying levels of
commercialisation.
• Involving production of different, related to
agriculture product.
10. Agribusiness sub sector
• The output sector
• Responsible for the transformation of the raw
farm produce into final consumer products
and conveying them to the retail level.
• Large corporate organisations are common in
the output sector
•
11. Agribusiness sub sector.
• Wholesale operations involve sales to
retailers, other wholesalers, industrial users,
and, to a lesser extent, the ultimate consumer.
• The retail food stores represent one of the
largest industrial segments in agribusiness. It
includes informal sector food vendors, cattle
dealers, butchery owners, retail shops, super
market chains etc.
12. Importance of agribusiness to the
economy(Tanzania)
• Source of employment
• Contribution to national income
• Expansion of non-traditional exports
13. Agribusiness linkages
• Beneficial intra-agribusiness linkages(agriculture
industrial concept)
• Inter relation of subsectors and their activities
• Technology development
• Need for productivity
• Need for export financing
14. Agribusiness linkages
• Beneficial linkages between agribusiness and other
sectors
• Tourism, which provides it with a market
• The energy sector that supplies it with
electricity and fuels to run farming and
processing operations.
• Agribusiness can generating a surplus that
could be invested and used to develop the
infrastructure.
15. Negative practices in agribusiness
• large input manufacturers and marketing firms
possess sufficient market power to influence the
prices at which they sell inputs and buy
commodities.
• Collusion among actors ,resulted to business
monopoly.
• This imbalance in market power between the
large and better resourced corporate and small
ones resulting into business conflict, hence needs
government intervention.
16. Negative practices in agribusiness
• The exploitative tendencies by crop
raiders/middlemen and export companies.
• Moral hazards by producers/farmers.
18. TOPIC 2
• INTRODUCTION TO ENTREPRENEURSHIP
• LIST FIVE CHARACTERISTICS OF AN
ENTREPRENEUR (10 MARKS)
19. Important definitions.
• Entrepreneurship is the process of creating
something different with value by devoting
the necessary efforts, assuming the
accompanying risks and receiving rewards of
monetary and personal satisfaction.
• An Entrepreneur is a person who exploits
opportunities and utilizes resources to create
more value taking reasonable risks in the
process.
20. Important definitions
• An Entrepreneur is a person who exploits
opportunities and utilizes resources to create
more value taking reasonable risks in the process.
• Economists view entrepreneurs as those who
bring resources together to generate profit.
• Psychologists view them in behavioural terms as
being achievement oriented individuals, driven to
seek challenges and new accomplishments
24. Business skills needed by
entrepreneurs
• Identifying opportunities
• Formulating ideas
• Clarify concept
• Goal setting
• Developing a business plan
• Obtaining technical assistance
• Selecting the type of ownership
25. Business skills needed by
entrepreneurs
• Planning the marketing strategy
• Locating the business
• Financing the business
• Dealing with legal issues
• Managing human resources
• Promoting the business
• Managing sales efforts
• Problem solving
26. Advantages of entrepreneurship
• Enormous personal financial gain
• Self-employment, offering more job
satisfaction and flexibility of the work force
• Employment for others, often in better jobs
• Development of more industries, especially in
rural areas or regions disadvantaged by
economic changes, for example due to
globalization effects
27. Business skills needed by
entrepreneurs
• Encouragement of the processing of local
materials into finished goods for domestic
consumption as well as for export
• Income generation and increased economic
growth
• Healthy competition thus encourages higher
quality products
• More goods and services available
• Development of new markets.
28. ASSIGNMENT-2
• INDIVIDUAL ASSIGNMENT(10 Marks)
• WRITE A BUSINESS IDEA CONCEPT NOTE
RELATED TO AGRIBUSINESS(maximum 5
pages)
DEADLINE FOR SUBMISSION-18/01/2014
29. TOPIC 3
• THE LEGAL ECONOMIC AND SOCIAL
DIMENSIONS OF AN ENTERPRISE
30. Forms of business
Many micro and small enterprises operating in our
society today have not formalized their
operations under any of these legal forms.
There are four significant legal forms of business:
i. Sole proprietorship
ii. Partnership
iii. Corporate
iv. Co-operate
31. Forms of business
• Which Business Form?
Depends on
• Personal preferences of the entrepreneur(s)
• Profile/size of the relevant enterprise
• Advantages/disadvantages associated with the
particular legal business form
• Funds required vis-à-vis funds available.
•
32. Forms of business
• The Sole Proprietorship
-One person and does not involve legal partners.
The person bears full accountability for the
business in terms of financing, compliance with
tax regulations, etc.
-This business carries unlimited liability in that the
entrepreneur is liable to the extent of her
personal assets.
-Technically, a sole proprietorship does not exist
without its owner.
33. Forms of business
Advantages
i. Relatively easy and low cost of starting up.
ii. All accrue to the owner
iii. The owner has direct control
iv. Possible tax savings
v. Freedom and simplicity of ending the
business
vi. Simplicity of administration
34. Forms of business
Disadvantages
• Unlimited liability of owners
• Limitations applicable to the raising of
capital/financing
• Lack of business continuity
• Limited opportunities for employees
•
35. Forms of business
Partnership
• A partnership exists where two or more
persons are co-owners in an enterprise. In
operating as partners the owners do not only
combine financial resources, but also their
talents, which are usually complementary.
They are also able to expand social and
professional contracts.
•
36. Forms of business
• Types of partnership
• The general or simple partnership
• The limited partnership
• A general partnership
one in which the co-owners share unlimited liability for
the business regardless of the percentage each has
invested. Each is also legally liable for the conduct of
the business, and cannot avoid any liabilities that are
created by any of the partners.
37. Forms of business
• A limited partnership, one or more of the
partners have limited liabilities, and also need
not be involved in the actual running of the
business.
•
38. Forms of business
• Advantages
i. Ease for formation
ii. Access to additional capital
iii. Broader management base
iv. Tax advantages
v. Employee incentives
vi.
39. Forms of business
• Disadvantages
i. Unlimited liability
ii. Shared authority
iii. Lack of continuity
iv. Capital limitation
40. Forms of business
• The Corporation or Registered Company
• The corporation is a business having a legal
identify of its own but whose ownership to a
maximum of twenty in the case of a private
corporation, and an unlimited number in the
case of the public corporation.
41. Forms of business
• The owners of a corporation are its shareholders
– meaning that they are the final owners of the
company’s assets, less debts and liabilities. A
corporation has its own legal identify separate
and apart from its shareholders. It can acquire
property, accumulate wealth, sell its assets, enter
into contracts with other entities or individuals,
make investments or engage in legal actions.
•
42. Forms of business
Advantages
i. Limited liabilities
ii. Wide and full access to equity capital
iii. Specialized management and broad networking
iv. Continuous existence
v. Transferability of ownership
vi. Less risk for creditors
vii. Autonomy in the establishment of legal entities
viii. Tax advantages
43. Forms of business
• Disadvantage
i. Dispersed ownership
ii. Operational flexibility
iii. Taxation
iv. Implication for secrecy
44. Forms of business
• The Co-operative Form of Business
• An enterprise or organization that is owned or
managed jointly by those who use its facilities or
services.
• An association or corporation established for the
purpose of providing services on a nonprofit basis to its
shareholders or members who own and control it.
• The nature and functions of cooperatives differ
considerably—such as purchasing cooperatives,
consumer cooperatives, and marketing cooperatives
•
45. Forms of business
Advantages
i. Tax and stamp duty concessions
ii. Wide social and professional networking
iii. Shared decision – making
iv. Safety mechanism against individual or special
interest group control
v. Attractiveness to grant aid funding institutions
46. Forms of business
Disadvantage
i. They are difficult to organize and register
ii. Suppression of independence
iii. Restriction of level of share ownership
iv. Restrictions of savings rate and dividends
payout
v. Limited credit prospects
47. Starting and Operating an Enterprise
critical economic and social requirements include:
i. Marketing
ii. Funding
iii. Personnel
iv. Inputs/Resources
v. Production/Processing
vi. Location
vii. The environment
50. Identifying business opportunities
• Ideas and Opportunities
• an idea becomes an opportunity only when it has the potential to
be viable.
• Viability can be determined against several criteria, but some
general areas include:
•
• Marketing: Is there a substantial market for the product/service?
I.e. will people buy it?
• Production: Will you have the capacity and technology to produce
goods that will meet the requirements of the market and enable
you to make a profit?
• Financial: What returns will you get on your investment?
51. Identifying business opportunities
• Sources of Business Ideas
i. Awareness of trends and practices in your society
ii. Greater health and fitness
iii. Information Technology
iv. Increase in travelling and the exposure to other
cultures
v. Two income families
vi. Globalization
vii. Recognition of needs
viii. Problems
ix. Other cultures.
52. Identifying business opportunities
• Other sources
i. Friends, business associates, consultants etc
ii. Yellow pages and business publication
iii. Statistical, and other information bureau
iv.
54. Business plan
• A Business Plan is a document or blue print
that summarizes what the entrepreneur
hopes to achieve from being in business, and
how various resources will be organized to
meet these goals.
• It is a detailed analysis and description of all
aspects of business over a given time frame.
55. Business plan
• It is also a tool that serves for implementing the
business idea, monitoring the progress of the
business and outlining strategies that will ensure
that the business is able to cope with difficulties,
particularly those of the first few years.
• Generally it will include details of the nature of
the business, its structure, goals, objectives,
strategies, markets, star-up and operation costs,
financing required as well as returns on
investment.
56. Business plan
• The Importance of Preparing a Business Plan
• Having a plan means having a focus and a clear
direction of where you want the business to go
and how it will get there.
• It is map/framework to be followed by the
management
• Compensates for lack of experiences
• Compensates for lack of capital
• Reduces chances of failure and minimization of
risks
57. Business plan
• It serves as a communicating tool when
orienting personnels
• Preparing a Business Plan also helps to ensure
that needs are anticipated and planned for
before they actually arise.
• Internally, the plan also benefits you in terms
of being a tool that allows you to monitor the
progress of your business.
58. Business plan
• The business plan becomes a reference point for
implementing strategies that will counteract the
problem while steering the business towards its
goals.
• Externally, it can be used as a proposal for
accessing capital for start up, or expansion.
• It is on the basis of this plan that lending
agencies or investors decide if your business idea
is bankable or worth banking.
59. Business plan
The Business Planning Process
To facilitate the preparation of a useful and effective plan,
there are a number of preliminary steps, which need to
be taken. These include:
• IDENTIFICATION OF BUSINESS IDEAS BY
i. Copy from existing business e.g. daladala, shops,
grocery
ii. Modifying existing business eg. Coming up with a
mobile toilet, packed and blended safe vegetables
iii. New business e.g. caring sick/elders
60. Business plan
Validate the idea, assess the viability of the idea- not all ideas
are opportunists.
• Develop a market plan or the basis of knowledge from
market assessment
• Develop an operational plan for what you will produce or
market
• Prepare financial plan (sources and use of money)
• Show assumptions
• Show benefits
• Determine the long-term and short term goals of the
business
61. Business plan
• BUSINESS PLAN OUTLINE
– Cover page
– Executive summary
– Table of contents
– History/introduction of the business
– Definition of the business
– Market plan
62. Business plan
– Production plan
– Management plan
– Objective, goal and strategies
– Financial plan
-financing issues
-financial data-cost volume, profit analysis,income
projection,cash flow analysis and balance sheet
63. Cover page
• Should include appropriate descriptions.
– Business name
– Business address
– Business phone, fax, E-mail address
– Principals (owners of the business)
– Date
64. Executive summary
• This is what convinces someone that they
should read the remainder of the plan.
• It should be one or two double spaced typed
pages and contain the essence of the plan.
• Remember:
– for whom it is written,
– what is being requested of them, and
– why they should be interested in participating in
the venture or financing it.
65. Table of contents
• Be specific and complete in this area.
• Some readers may judge the completeness on
the basis of the plan.
BUSINESS DESCRIPTION
-History/ introduction
-Definition of the business
-Description of the products or services
-Location
66. (a) History/ Introduction
–If this is a start-up venture,
a brief explanation of how the idea
(company) came about, is in order at this
point.
– If this is an operating plan
the history section may have the major
highlights supplemented with additional
details, in a appendix.
67. (b) Definition of the business
• It is important that you be able to state
succinctly what the business is.
• This is distinct from what the business does (a
listing of functions, products, or services) and
is oriented to answering the question:
– WHAT NEED ARE WE MEETING.
68. (c)Description of products or service:
• The identified need and the identified market will
be accommodated by specific products or
services.
• The description(s) of the product or services
should fully explain to the reader why, given the
previously stated information, such products or
services will be demanded.
• You may append catalog sheets, pictures, etc.
69. (d) Location
• This section should explain location where the
business will be located, being its
production/processing facilities.
70. MARKETING PLAN:
• Having stated WHAT need you are fulfilling you can
now define WHO has that need.
• Your definition will indicate the target of your
marketing effort and will give both demographic and
psychographic characteristics.
• Your market penetration projection should be included
along with an analysis of the competition.
– Customers
– Competition
– Pricing
– Sales, advertising and Promotion
– Distribution
71. MANAGEMENT PLAN
• Having described the business, the market, and the
product, it is time to indicate who will make things
happen.
• A start-up or financing plan will require more detail
than will an operating plan.
• Resumes and other details of the personal
backgrounds of the principals should be left to an
appendix.
• This section should sell two things:
– That you have the right people and
– that they are properly qualified or experienced to
effectively manage the business.
72. OBJECTIVES, GOALS AND STRATEGIES
• What you intend to accomplish and how?
• This will include varying amounts of details based upon
the purpose of the plan, but it is important to focus
this section on the “crunch factors”.
• The detail should be placed in individual appendices.
• Items to be covered in this section include:
– Sales strategies
– Promotion strategies
– Financial strategies
– Management strategies
– Pricing strategies
73. FINANCIAL DATA
• A business plan is future oriented.
• Therefore, this section should focus on projections and pro-
formas
• Historical financial information necessary to understand the
plan should be referenced in an appendix.
• The items to be included are:
A. Cost-volume-profit analysis
B. Income projections – Pro-forma
– Monthly for the planning year
– Quarterly for the second year
– Annually for the third year
74. C. Cash flow analysis – Pro-forma
– Monthly for the planning year
– Quarterly for the second year
– Annually for the third year
75. APPENDICES
• These give supporting detail to the content
section as well as adding material of interest
not otherwise included.
• If there is proprietary information (patent,
research and development, formulas, market
research, etc) that you may wish to control it
would be well to place that information into
detachable appendices.
77. Assignment
• Now after Knowing what is included in the
business plan.
– Prepare a business plan for the idea you
submitted, if you wish to change the business idea
you will be required to contact the Mwl.
Concerned
– There would be some presentation of each
section which would be picked randomly, so it
better to be prepared in advance and own the
business idea.