Business - A decision-making organisation involved in the process of using inputs to produce goods and/or to provide services.
Finance & Accounts - Manages the organisation’s money, and ensures that recording and reporting of financial documentation is accurate.
Human Resources - Responsible for managing the personnel of the organisation.
Marketing - Responsible for identifying and satisfying the needs and wants of customers.
Operations - Responsible for maximising efficiency of the process of converting raw materials and components into finished goods.
Primary Sector - Involved in extraction, harvesting and conversion of natural resources (e.g. agriculture, fishing, mining, forestry and oil extraction). As economies develop, there is less reliance on the primary sector, as there is little value added in primary production.
Secondary Sector - Involved in manufacturing or construction of products (e.g. clothes manufacturers, publishing firms, breweries, construction firms, electronics manufacturers, energy production).
Tertiary Sector - Specialised in providing services to the general population (e.g. retail, transportation and distribution, banking, finance, insurance, health care, leisure and tourism, and entertainment)
Quaternary Sector - Involved in intellectual, knowledge-based activities that generate and share information (e.g. information communication technologies, research & development, consultancy services, scientific research)
Sectoral Change - a shift in the relative share of national output and employment that is attributed to each business sector over time. Economies tend to progress as the countries shift upwards in the sectors.
Intrapreneurship - The act of being an entrepreneur but as an employee within a large organisation. An intrapreneur generates new ideas and innovations for the organisation, and takes on the responsibility and risks of turning a project or idea into a profitable finished product for the organisation.
Entrepreneur - An individual who plans, organises and manages a business, taking on financial risks in doing so. An entrepreneur capitalises on opportunities to create a product or service that fulfils a market demand, by building an organisation to support those sales.
Risks Involved - An entrepreneur takes substantial risk with personal consequences, such as a loss of personal finance or credibility with business partners. However, as intrapreneurs act under the guise of an organisation, it is the organisation who incurs the risks and costs of failure.
Benefits of Success - An entrepreneur will enjoy unbound benefits to the success of the project, and will have full control over the use of resources that come from the success of the business, such as where to reinvest profits. An intrapreneur's success will benefit the organisation, who has full ownership and administration of the project, with potential minor benefits to the intrapreneur, such as recognition or financial rewards.
Earnings - Potential earnings from setting up a personal business far outweigh a salary from regular employment.
Transference and Inheritance - Many entrepreneurs view their business as something they would like to pass on to their children, giving them a security that might not be possible if they chose to work for someone else.
Challenge - Some people might view setting up and running a business as a challenge, which drives them to perform and gives them personal satisfaction.
Autonomy - Entrepreneurs enjoy independence and freedom of choice when it comes to their work.
Hobbies - Some people have turned the pursuit of a passion or a hobby into a functional business practice.
Feasibility of Business Idea - Unbiased analysis of market response to product, financial strain and personal investment.
Finance Required - Fixed assets required, unbiased forecast of operational costs, and how capital will be acquired.
Human Resource Required - Roles required for operational functions, how to attract potential employees, etc.
Geographical Advantages or Limitations - Availability of infrastructure for a feasible chain of production, government legislation and communications technologies available, etc.
Barrier of Entry to Market - Concentration of competitors in the industry, unique selling point of business.
Lack of Finance - lacking credentials to obtain business loans to cover unforeseen debts, lacking cash inflow to counter initial start-up costs, growing too quickly without having adequate reserves to fund unforeseen circumstances.
Marketing Problems - Insufficient / Inadequate analyses of market trends, consumer demands, unique selling point, etc.
Legalities - Failure to comply with all necessary legislation, such as business registration procedures, insurance for staff and fixed assets, consumer protection laws, copyright issues, etc.
Production Problems - Inaccurate forecast of productivity, market demand, over/under-stock, lack of economies of scale due to small production, etc.
External Influences - Exogenous shocks that affect the global economy and increase the difficulty of trade.
Business Plan - A report summarising the operational and financial objectives of a business, as well as the strategies, plans and budgets to achieve its objectives. An objective business plan will specify the viability of a business idea, and is generally presented to potential investors and lenders to demonstrate the potential of the business.
Viability of Business - Creating a business plan forces managers or entrepreneurs to analyse and evaluate whether any aspects of strategies have been overlooked, and which aspects require more attention and discussion.
Attracting Investors - A comprehensive business plan with a viable business idea will aid the business in attracting financial lenders and investors who believe in the direction of the business.
Attracting Talent - Especially for unproven startups, a strong business plan will attract talented employees and partners by showing them the direction and growth potential of the business.