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Small Business
Learning Unit 1
Question | Answer |
---|---|
Define emerging economies | An Economy of a developing nation that is becoming engaged with global markets as it grows |
Five major emerging economies | BRICS Brazil Russia India China South Africa |
Who first used the BRICS term | Goldman Sachs (investment bank) |
Characteristics of emerging economy | Low income Swings Maintain regulatory body Rapid economy growth Transitional Nature Young labour force Growth potential |
GEM Report 3 economies | Factor driven- compete on the use of unskilled labour and natural resources Efficiency-driven- focuses on improving production efficiency to drive growth Innovative driven- focus on the use of skilled labour and automation |
Define small business | A business with growth potential that is small compared to a large organisation in an industry Is only financed by only a few individuals And has a small management team |
Functions of a small business | Job creation Plays a vital role in innovation Encourages competitiveness amongst SMEs Stimulates economic growth |
3 categories of small business | Micro: Employees: 0-10 AT: <R20m Small: Employees: 11-50 AT: <R80m Medium: Employees: 51-250 AT: <R220m |
Factors contributing to start up failure in emerging economies | Lack of planning Improper financing Poor management lack of credit |
Define small business management | The alignment and coordination of multiple activities and managerial functions(planning, organising, leading & controlling) in a small organisation by business manager/owner |
Functions of a small business manager | 1. Planning 2. Organising 3. Leading 4. Control |
Additional tasks and activities | 1. Human resource management 2. Procurement 3. Secretarial management 4. Facilities management 5. Operations management 6. Marketing management 7. Finance management 8. IT & e-commerce 9. Managing growth |
Small businesses vs Entrepreneurial ventures | SM- The goal of a small business is to further the personal goals of the owner and ensure his/her security EV- The principal objective is to ensure profitability and growth |
Challenges facing SMEs in SA | Lack of access to capital Lack of skills training Crime Reliance of exporting raw materials Lack of mentorship |