1.3 Enterprise, business growth and size Online Test

Leadership Issues, Poor planning, Lack of Market Fit, external factors a business can not control, Overexpansion or Rapid Growth and Failure to Adapt to market needs are examples of why new start-up businesses and established businesses fail

The entrepreneur brings together the various factors of production to produce goods or services. Here are traits that make up an entrepreneur; Hard working, Innovative, Self-confident, Risk taker, Creative, Independent

There are two ways in which a business can grow- internally and externally.

Businesses fail because:

Merger – is when one business buys out the owners of another business , which then becomes a part of the ‘predator’ business.

Governments aid start-ups to help economic growth, job creation, and innovation. They provide financial assistance like grants, loans, and subsidies targeting specific industries or regions that are struggling.

Businesses might stay small due to various reasons. Some entrepreneurs prefer manageable operations to maintain quality or personal control. Limited access to funding, resources, or skilled labour can restrict growth.

An enterprise is an activity or a project that produces services or products. Within enterprise we have entrepreneurs.

A written document containing the business aims and objectives; important details about the operations, finance and owners of the that business. How, when and what they will do. A look into future of the business, the steps it will take to get where they need to be.

External growth – This is when a business takes over or merges with another business. It is sometimes called integration as one firm is ‘integrated’ into the other.

Business size can be measured in the following ways:

Number of employees: larger firms have larger workforce employed
Value of output: larger firms are likely to produce more than smaller ones
Value of capital employed: larger businesses are likely to employ much more capital than smaller ones

A typical business plan includes several key components; Business Description, Marketing and Sales Strategy, Organization and Management and Market Analysis