Exploring the World of Business

Key terms

Business, any economic activity carried out with the desire to make profit. It involves the exchange of goods and services between the producer and consumer.

Producer, a person making the product or delivering a service.

Consumer, a person the service is rendered to, or the good sold to.

Things you need to start a business: Capital, Land, Labour, Market, Knowledge/Skills.

Types of businesses

1) Small-scale business, usually owned and operated by 1, 4 people that sell things or offer services in their neighbourhood or town, e.g. a chapati stall, small bakery, grocery shop.

2) Large-scale business, a very big company that produces and sells lots of products or services to many people, with many employees and customers, e.g. Coca-Cola, Mukwano Industries, Movit.

Characteristics of a good business person

Risk-taking, doing an activity even when results may be negative. A true entrepreneur does not take no for an answer.

Creativity, coming up with unique ideas to make your business better (e.g. adding carrots or margarine to your chapatis).

Self-motivation, doing a lot by yourself with minimal supervision because you are passionate about what you are doing.

Independence, being self-driven to succeed and overcome obstacles.

Open-mindedness, being flexible and able to embrace change; every situation is an opportunity.

Steps of starting a business

Idea Generation, search out business ideas; choose a name; design your product or service in terms of prices and branding.

Market Research, identify your target market, competitors, market prices and distribution channels.

Gathering Resources, capital, land, labour, market.

Start the Business, coordinate and assemble your resources; have a specific process products/services go through before being sold.

Running / Operating, supervise activities and processes; make healthy decisions; keep records of every transaction; NEVER mix personal money with business money.

A business can be run independently or with a group of people who have the same interests. Value the opinions of others to avoid misunderstandings.

Activity: The Investment Bid

Divide the girls into groups of 5, 8. Aim for up to 10 groups.

Explain that they will play "The Investment Bid". Each group is a team of business partners, and you (the coach) are the investor.

Each team comes up with a business idea and pitches it to the investor. The pitch must be convincing enough to win funding.

Pre-prepare flipcharts with space for each group to fill in their bid, business idea, target market, resources needed, expected profit, plan for growth.