innovation, creativitiy and entrepreneurship ice712s · 2017-03-03 · innovation, creativitiy and...

INNOVATION, CREATIVITIY AND ENTREPRENEURSHIP

ICE712S

Presenter Name: Werner Coetzee

Presentation Date: 03 March 2017

Tel: 0811249927

Email: [email protected]

mailto:[email protected]

Agenda1. Introduction – Tutor

2. Welcoming of students to first face to face class

3. ASSIGNMENT & TEST DATE4. Resource requirements for a new business

5. Countdown to start –up a business6. Record Keeping

7. Group Work 8. Questions

Welcome

ASSIGNMENT 1,2

Due Dates:

ASSIGNMENTS

RESOURCE REQUIREMENTS FOR A NEW BUSINESS

1,1 THE NATURE OF RESOURCES

The entrepreneur needs to consider the right mix of resources

Resources are all the things that an entrepreneur needs and uses to pursue a business opportunity

Resources are limited to the entrepreneur and this can mean that resources used to acquire a specific resource will result in fewer resources for another needed resources.


1,2 MAJOR TYPES OF RESOURCES

Financial Resources – resources which consist of all the resources that can be

readily converted in to cash can be defined as the resources of finance

Money invested by the entrepreneur Money lent from outsiders like banks and investors Source is when the business is started, in a form of revenue Other sources, government support programmes, venture capital

funds and leasing for machinery and equipment



Human Resources – how to accurately forecast these

needs and recruiting candidates and selecting the best person for the job

List tasks that must be performed in the business Group tasks that can be logically be done by one

person Determine the qualifications and skills the person

must have to perform the task Recruit people who are willing and able to do the

tasks in the job description Interview the candidate



Human Resources – how to accurately forecast these

needs and recruiting candidates and selecting the best person for the job

Appoint the best person for the job and conclude a contract for the job



Physical Resources – Includes, fixed assets, raw material

and general suppliers used in the operation of the business.



Factors to consider for location:

Access to the market Availability of raw materials Availability of labour and skills Infrastructure, water supply, electrical supply,

existing business environment Climate plays a major role


1,3 LEGAL FORMS OF BUSINESS

Sole Proprietor:

One owner Owner is legal entity Limited statutory Tax Compensation fund Easy to start



Partnership:

Minimum of two and maximum of 20 partners No major formalities Partnership agreement Act on business name



Close Corporation:

At least one and not more than 10 members Members must be natural persons A legal entity Registrar of close corporation Act on close corporation (Act 69 of 1984) Minimum punishable offences



Company Companies Act ( Act 61 of 1973) :

Private company Shares not sold to general public Registrar of companies Minimum of 1 shareholder and 1 director and

maximum 50 shareholders Private companies with limited liability,

incorporation



Company Companies Act ( Act 61 of 1973) :

Public company Public is invited to buy shares Shares can be listed on the Namibian stock

exchange, JSE At least seven(7) shareholders and two directors Share buy back Name must end with limited (limited by guarantee)

COUNTDOWN TO START-UP A BUSINESS

Every business start small and if successful will grow

In order to grow entrepreneur needs skills, preparation and proper planning through effective business planning


Planning – take place during the idea generation and opportunity recognition

The business plan forces the entrepreneur to think about the market plan, production, operations, management, and finances of the new business venture

The business plan to be converted into the action plan with time frames, and required resources


Organising – gathering of resources, meeting legal requirements, finding a site for the business and the legal form of the business

Develop policy and procedures in respect of employment, ethics and quality assurance


Leading – starts when operations start, when staff are appointed

Staff needs to be motivated, coordinated, controlled


Control – record keeping, risk management, quality, ethics, and internal control systems are set up

RECORD KEEPING AND INTERNAL CONTROL

It’s important that entrepreneurs should have accurate, meaningful and timely information for the good management of the business and to make informed decisions.

When the business has a good accounting system it should accomplish the following objectives:


Maintain source documents and provide an audit trail

Provide accurate, thorough picture of operating results

Permit a quick overview of present and past operating results


Facilitate prompt filling of reports and tax returns to government’s inland revenue department

Offer financial statements for use by management and other stakeholders


Record keeping of any business should start when the business starts

Record keeping should start with files, order books, a computer system

Record keeping and Accounting function can be outsourced

If you keep records from the beginning you can make better decisions

Case Study4, What factors can result in an opportunity?

5. Group Work

• Design a business plan for a bank proposal.

QUESTIONS?

innovation, creativitiy and entrepreneurship ice712s · 2017-03-03 · innovation, creativitiy and...

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