Category: Entrepreneurship and communication skills

In many businesses, the cost of purchasing merchandise for resale (retailing) or the costs of purchasing and converting materials into finished products (manufacturing) represent the business’s most significant expenditures. Keeping track of merchandise and materials, known as inventory, is important Read More …

To be a good manager one should have the following qualities Intelligence – to enable him understand difficult ideas and deal with varied issues. Initiative – to enable him get solutions to problems and take control of situations Self confidence Read More …

Management is necessary because resources are scarce and factors such as employees , technology costs keep changing. Effectiveness is the ability to obtain the intended results, while efficiency is accomplishing the objectives by utilising minimum resources. Management functions involve planning, Read More …

In order to increase chances of survival small businesses need to identify firms that offer support services where they can get help with the running of the business. Some of the support services for small enterprises include: Training services This Read More …

Legal registration e.g. registration of business names Tax compliance e.g. VAT, income TAX, PAYE Trade license e.g. single business permit Public health inspection Environmental requirements e.g. NEMA Registration with relevant government department e.g. Ministry of Fishery, Livestock, Training Social Security Read More …

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 …