Author: KNEC notes and Past Papers

Business Life Cycle: 5 Stages of Small Business In the small business life cycle not every business will go through every stage, and not all small businesses will succeed as a result of these stages. However, they are proven stages Read More …

Estimating market demand Estimating start –up capital and operating expenses Meeting collateral requirement – obtaining money to adequately fund the start –up Meeting legal requirements Financial institutions are redundant to lend to start –ups Identifying reliable source of supply Lack Read More …

The following are the types of business organisations: i) Sole proprietorship This is a business owned by one person. Advantages Ease of formation: this is the easiest form of business organization to establish. There are no complex forms to complete Read More …

Inappropriate business management and technical skills (adaptable to changing customer needs). Inadequate financing Start-up Operating Expansion capital Personal expenses Lack of proper record keeping Use of records for sound decision making Little understanding of accounting records Improper costing and pricing Read More …

Below are some of the factors to consider when starting a business: Entrepreneurial traits Business management and technical skills Long term market demand for product/service The cost of starting, operating and personal finance The level of competition – direct, indirect Read More …

For a business to succeed the right approach must be followed. Below is a suggested approach that can be followed: i) Idea generation. ii) Market survey: – Define problem, target population, select sample, define survey instruments, collect data, analyse data, Read More …

To achieve high productivity levels in the business enterprise, an entrepreneur requires having entrepreneurial competencies.  The following are some of the competencies necessary for setting up and managing a successful business enterprise: 1. Time management Time is a scarce resource, Read More …

Although the motivations for venturing out alone vary greatly, the following are some of the reasons cited for becoming an entrepreneur: Internal motivations and drives include: Need for self actualisation Need for achievement Need to take up a challenge Need Read More …

Many theories have been developed on motivation. The following are some theories that could support motivation. Achievement Theory (mcClelland) Human beings are seen to be driven by three main factors: Need to achieve Need for power Need for affiliation To Read More …

Motivation refers to a drive that is sufficiently pressing to direct the person to seek satisfaction of the need while a need becomes a motive when it is aroused to a sufficient level of intensity. In human psychology it is Read More …