Topic 3: Business Opportunities and Entrepreneurship

1. Business Opportunities

A business opportunity is a gap or unmet need in the market that can be turned into a profitable business.

Sources of Business Ideas

1. Unmet needs and problems in the community.
2. Personal skills, hobbies and talents.
3. Newspapers, the internet and trade fairs.
4. Existing businesses (improving them).
5. Imports and new technology.
6. Government policy and trends.

Factors to Consider When Choosing a Business Opportunity

• Capital available
• Market demand
• Skills and experience
• Competition
• Location and infrastructure
• Legal requirements and licences
• Risks and profitability

2. Entrepreneurship

• Entrepreneur: a person who identifies opportunities, organises resources and takes risks to start and run a business.
• Entrepreneurship: the process of starting and running a business venture.

Qualities of a Good Entrepreneur

1. Creativity and innovation
2. Risk-taking
3. Hardworking and self-motivated
4. Good decision maker and planner
5. Leadership and communication skills
6. Honesty and integrity
7. Perseverance

Importance of Entrepreneurship

1. Creates employment.
2. Promotes innovation and new products.
3. Increases national income and tax revenue.
4. Reduces poverty and dependence.
5. Encourages use of local resources.

3. Starting a Business

The Business Plan

A written document that describes the business idea and how it will be run. It contains:

1. Executive summary
2. Description of the business and its products
3. Market analysis and marketing plan
4. Organisation and management
5. Financial plan (capital needed, expected costs and revenue)

Sources of Start-up Capital

4. Challenges Facing Entrepreneurs

• Lack of capital
• Stiff competition
• Poor infrastructure
• Unfavourable policies and high taxes
• Lack of skills or market information
• Risk of loss or failure