Tag: Business

Business!

Businesses can privately own, not-for-profit or state-owned. An organization or economic system where goods and services are exchanged for one another or for money. Every Business requires some form of investment and enough customers to whom. Its output can sell on a consistent basis in order to make a profit. A paid occupation, especially one that involves prolonged training and a formal qualification.

A Company (also known as an enterprise, a company, or a firm) is an organizational entity and legal entity made up of an association of people, be they natural, legal, or a mixture of both. Who share a common purpose and unite in order to focus their various talents and organize. Their collectively available skills or resources to achieve specific declared goals and are involving in the provision of goods and services to consumers. A business can also describe as an organization that provides goods and services for human needs.

Business - ilearnlot

  • Advantage and Disadvantages of Mission Statement

    Advantage and Disadvantages of Mission Statement

    Difference of Advantage and Disadvantages of Mission Statement

    What is Definition of Mission Statement? A sentence describing a company’s function, markets and competitive advantages; a short written statement of your business goals and philosophies. Difference of Advantages and Disadvantages of Diversity Management.

    A mission-statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission-statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.

    If you don’t have a mission-statement, create one by writing down in one sentence what the purpose of your business is. Ask two or three of the key people in your company to do the same thing. Then discuss the statements and come up with one sentence everyone agrees with. Once you have finalized your mission-statement, communicate it to everyone in the company.

    It’s more important to communicate the mission-statement to employees than to customers. Your mission-statement doesn’t have to be clever or catchy just accurate.

    If you already have a mission-statement, you will need to periodically review and possibly revise it to make sure it accurately reflects your goals as your company and the business and economic climates evolve. To do this, simply ask yourself if the statement still correctly describes what you’re doing.

    If your review results in a revision of the statement, be sure everyone in the company is aware of the change. Make a big deal out of it. After all, a change in your mission probably means your company is growing-and that’s a big deal.

    Once you have designed a niche for your business, you’re ready to create a mission-statement. A key tool that can be as important as your business plan, a mission-statement captures, in a few succinct sentences, the essence of your business’s goals and the philosophies underlying them. Equally important, the mission-statement signals what your business is all about to your customers, employees, suppliers and the community.

    The mission-statement reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community. Components of a Strategy Statement.

    Advantages of Mission-Statement

    Provides direction: Mission-statements are a way to direct a business into the right path, it plays a part in helping the business make better decisions which can be beneficial to them. Without the mission-statement providing direction, businesses may struggle when it comes to making decisions and planning for the future, this is why providing direction could be considered one of the most advantageous points of a mission-statement.

    Clear purpose: Having a clear purpose can remove any potential ambiguities that can surround the existence of a business. People who are interested in the progression of the business, such as stakeholders, will want to know that the business is making the right choices and progressing more towards achieving their goals, which will help to remove any doubt the stakeholders may have in the business.

    The benefit of having a simple and clear mission-statement is that it can be beneficial in many different ways. A mission-statement can help to play as a motivational tool within an organization. It can allow employees to all work towards one common goal that benefits both the organization and themselves. This can help with factors such as employee satisfaction and productivity. It is important that employees feel a sense of purpose. By giving them this sense of purpose it will allow them to focus more on their daily tasks. Help them to realize the goals of the organization and their role.

    Disadvantages of Mission-Statement

    Although it is mostly beneficial for a business to craft a good mission-statement. There are some situations where a mission-statement can be considered pointless or not useful to a business.

    Unrealistic: In most cases, mission statements turn out to be unrealistic and far too optimistic. An unrealistic mission statement can also affect the performance and morale of the employees within the workplace. This is because an unrealistic mission statement would reduce the likelihood of employees being able to meet this standard which could demotivate employees in the long term. Unrealistic mission statements also serve no purpose and can consider a waste of management’s time. Another issue which could arise from an unrealistic mission statement is that poor decisions could made in an attempt to achieve this goal. Which has the potential to harm the business and seen as a waste of both time and resources.

    Waste of time and resources: Mission-statements require planning, this takes time. Effort for those who are responsible for creating the mission statement. If the mission-statement is not achieve, then the process of creating. The mission-statement could seen as a waste of time for all of the people involve. A lot of thought and time is spent in designing a good mission-statement. And to have all of that time wasted is not what businesses can afford to doing. The wasted time could have spent on much more important tasks within the organization such as decision-making for the business.

    Advantage and Disadvantages of Mission Statement

  • Mission Statement

    Mission Statement

    What is Mission Statement?

    A mission statement is a short statement of an organization’s purpose, identifying the scope of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. It may include a short statement of such fundamental matters as the organization’s values or philosophies, a business’s main competitive advantages, or a desired future state the “vision”.

    A mission statement is not simply a description of an organization by an external party, but an expression, made by its leaders, of their desires and intent for the organization. The purpose of a mission statement is to focus and direct the organization itself. It communicates primarily to the people who make up the organization its members or employees giving them a shared understanding of the organization’s intended direction. Organizations normally do not change their mission statements over time, since they define their continuous, ongoing purpose and focus.

    According to Chris Bart, professor of strategy and governance at McMaster University, a commercial mission statement consists of three essential components:

    Key Market: Who is your target client or customer (generalize if needed)?

    Contribution: What product or service do you provide to that client?

    Distinction: What makes your product or service unique, so that the client would choose you?

    Bart estimates that in practice, only about ten percent of mission statements say something meaningful. For this reason, they are widely regarded with contempt.

    The next step is to prepare mission statements. If the vision is “WHAT” of life, then the mission is “WHY” and “HOW”. It identifies the roles and activities to which an individual is committed and provides the overall direction for achieving the vision. Mission focuses on what you want to be and what you want to do- contributions and achievements. Mission focuses on the values and principles upon which being and doing are based. A personal vision needs to be clearly developed so that the mission statement can be based on it.

    I. These statements should clearly indicate the important roles and methodologies followed for fulfilling the vision.

    II. Techniques and tools such as affinity diagram, brainstorming, fish-bone diagram, and surveys should be used.

    III. Mission statements should realize the vision in action. Conduct a mind map to check whether it is really fulfilled.

    IV. These statements will carry the information which needs to be fulfilled in the near future.

    V. Time factor may be brought in to make it more systematic.

    Mission statements are prepared to make the employees understand in clear terms “HOW” to achieve the vision and “WHY” all this has to be done. It is a ROAD MAP for achieving the vision. The mission statements act as a guiding force encouraging the individuals to work towards reaching the vision.

    What is Purpose of Mission statement?

    The sole purpose of a mission statement is to serve as your company’s goal/agenda, it outlines clearly what the goal of the company is. Some generic examples of mission statements would be, “To provide the best service possible within the banking sector for our customers.” or “To provide the best experience for all of our customers.” The reason why businesses make use of mission statements is to make it clear what they look to achieve as an organization, not only for themselves and their employees but to the customers and other people who are a part of the business, such as shareholders. As a company evolves, so will their mission statement, this is to make sure that the company remains on track and to ensure that the mission statement does not lose its touch and become boring or stale.

    North American magazine and website that carries news stories about entrepreneurship, small business management, and business, Entrepreneur explains the purpose of a mission statement as the following:

    “The mission statement reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community.”

    It is important that a mission statement is not confused with a vision statement. As discussed earlier, the main purpose of a mission statement is to get across the ambitions of an organization in a short and simple fashion, it is not necessary to go into detail for the mission statement which is evident in examples given. The reason why it is important that a mission statement and vision statement are not confused is because they both serve different purposes. Vision statements tend to be more related to strategic planning and lean more towards discussing where a company aims to be in the future.

    Here are what business leaders say a mission statement should do for a company:

    “A good vision or mission statement will fill a few roles: It will be toothy enough to engage the media, analysts and other industry watchers. It will be aspirational enough to give employees something to reach for and bind them together in their day-to-day work. And it will be clear and specific enough to build the brand and affect public perception of the company. In an ideal world, it will even give your customers a sense that they’re buying into your vision when they purchase one of your products.” by Kyle Monson, a partner at Knock Twice hybrid creative agency.

    “A company’s mission statement is the cornerstone on which it is built. Its strategic plan and its culture are directly tied to the vision the mission statement puts forth. It is important that a mission statement supports the overarching goals and purpose of the company and explain why you exist as a business in a way that can be understood internally within the company and externally to consumers.” by Gerry David, president, and CEO of healthy lifestyle company Celsius Holdings.

    “Creating a mission statement takes time and a lot of decision making. It lays down expectations for how your customers and employees will interact with one another, so take your time with it. Clearly, write down your vision of the company and ask yourself, ‘What am I trying to accomplish?’ Think about how you want others to perceive your company, what’s important to you and your organization, and then prioritize it. Most importantly, make sure it’s clear, concise and easy for anyone to understand.” by Bobby Harris, president, and CEO of Blue Grace Logistics.

  • Successful Characteristics of Entrepreneur

    Successful Characteristics of Entrepreneur

    Have you ever thought about striking out on your own? After all, being your own boss can be an exciting prospect. However, owning a business isn’t for everyone. To be a successful entrepreneur, you must have or develop certain personality traits. Here are nine characteristics you should ideally possess to start and run your own business:

    I. Motivation: Entrepreneurs are enthusiastic, optimistic and future-oriented. They believe they’ll be successful and are willing to risk their resources in pursuit of profit. They have high energy levels and are sometimes impatient. They are always thinking about their business and how to increase their market share. Are you self-motivated enough to do this, and can you stay motivated for extended periods of time? Can you bounce back in the face of challenges?

    Meaning of Motivation is a theoretical construct used to explain behavior. It gives the reason for people’s actions, desires, and needs. Motivation can also be defined as one’s direction to behavior, or what causes a person to want to repeat a behavior and vice versa. A motive is what prompts the person to act in a certain way, or at least develop an inclination for specific behavior. According to Maehr and Meyer, “Motivation is a word that is part of the popular culture as few other psychological concepts are.”

    II. Creativity and Persuasiveness: Successful entrepreneurs have the creative capacity to recognize and pursue opportunities. They possess strong selling skills and are both persuasive and persistent. Are you willing to promote your business tirelessly and look for new ways to get the word out about your product or service? Meaning of Creativity is a phenomenon whereby something new and somehow valuable is formed. The created item may be intangible (such as an idea, a scientific theory, a musical composition, or a joke) or a physical object (such as an invention, a literary work, or a painting).

    III. Versatility: Company workers can usually rely on a staff or colleagues to provide service or support. As an entrepreneur, you’ll typically start out as a “Solo-entrepreneur,” meaning you will be on your own for a while. You may not have the luxury of hiring a support staff initially. Therefore, you will end up wearing several different hats, including secretary, bookkeeper and so on. You need to be mentally prepared to take on all these tasks at the beginning. Can you do that? Meaning of Versatility; ability to adapt or be adapted to many different functions or activities.

    IV. Superb Business Skills: Entrepreneurs are naturally capable of setting up the internal systems, procedures and processes necessary to operate a business. They are focused on cash flow, sales and revenue at all times. Successful entrepreneurs rely on their business skills, know-how and contacts. Evaluate your current talents and professional network. Will your skills, contacts and experience readily transfer to the business idea you want to pursue?

    V. Risk Tolerance: Launching any entrepreneurial venture is risky. Are you willing to assume that risk? You can reduce your risk by thoroughly researching your business concept, industry and market. You can also test your concept on a small scale. Can you get a letter of intent from prospective customers to purchase? If so, do you think customers would actually go through with their transaction?

    VI. Drive: As an entrepreneur, you are in the driver’s seat, so you must be proactive in your approaches to everything. Are you a doer — someone willing to take the reins — or would you rather someone else do things for you? Meaning of Drive; operate and control the direction and speed of a motor vehicle. Propel or carry along by force in a specified direction.

    VII. Vision: One of your responsibilities as founder and head of your company is deciding where your business should go. That requires vision. Without it, your boat will be lost at sea. Are you the type of person who looks ahead and can see the big picture? Meaning of Vision; the faculty or state of being able to see. The ability to think about or plan the future with imagination or wisdom. An experience of seeing someone or something in a dream or trance, or as a supernatural apparition.

    VIII. Flexibility and Open-Mindedness: While entrepreneurs need a steadfast vision and direction, they will face a lot of unknowns. You will need to be ready to tweak any initial plans and strategies. New and better ways of doing things may come along as well. Can you be open-minded and flexible in the face of change? Definition of Flexibility; The quality of bending easily without breaking.

    IX. Decisiveness: As an entrepreneur, you won’t have room for procrastination or indecision. Not only will these traits stall progress, but they can also cause you to miss crucial opportunities that could move you toward success. Can you make decisions quickly and seize the moment? Definition of Decisiveness; The ability to make decisions quickly and effectively. the conclusive nature of an issue that has been settled or a result that has been produced.

  • What are Source of Attributional Information?

    What are Source of Attributional Information?

    How do we decide what caused our success and failure? What cues do we use to explain whether an outcome was influenced by our ability, effort, or some other factor? Information comes from direct and indirect cues (Graham, 1991). Some information comes from direct cues, like failing a test when other students succeeded. Information is also obtained from more indirect cues, often conveyed unintentionally, such as when a teacher communicates pity to a student who failed a test. In addition, there may be a bias toward causes (Weiner, 1992).

    Direct Attributional Cues

    One of the most important informational cues is the outcome of the task. Here students have a direct cue as to their performance. Another source of attributional information comes from comparing one’s performance to that of others (Weiner, 1992). When most of the class fails a test, students are likely to attribute the failure to the difficulty of the task, not to their ability. However, if Sam failed and everyone else in the class made an A or B, he is likely to believe the failure was due to his low ability. If Sarah fails a test and a peer says, “I didn’t study at all and I made an A,” Sarah may take this as a cue that failure must be due to her ability. When a teacher sees students comparing grades on a test, information other than the test score is being communicated. An important role of the teacher is to help students interpret the possible reasons for test scores and make an adaptive attribution.

    Indirect Attributional Cues

    In school, feedback that students receive from teachers is a source of much information about ability. Students’ attributional interpretations may be based on the attributions that teachers communicated to them (Reyna, 2000). Graham (1991) identified three groups of feedback as sources of indirect cues: praise versus blame, sympathy versus anger, and help versus neglect.

    Praise Versus Blame: The praise or blame a student receives from a teacher can function as an indirect low-ability cue (Graham, 1991). The cue provided by praise or blame interacts with the difficulty of the task and effort expended by a student. Praise acts as a low-ability cue when a student is praised for completing an easy task. A low-ability cue is also conveyed when a student fails a task but receives no blame, like lack of effort. The student can interpret this to mean, “There’s nothing I can do about the failure.”

    Sympathy Versus Anger: Did it ever occur to you that communicating sympathy to a student could be interpreted as evidence that he or she has the low ability? Graham (1984) found that when teachers conveyed sympathy following poor student performance, the failing students took this as a cue that they had low ability. Obviously a statement like “I feel sorry for you because you made such a low score” would be a low-ability cue. What might a teacher say that unintentionally conveys a message of low ability to a student? One student remembers a class being told, “All students have to do this except Holly and Ramon.” Holly took her omission as a cue that she would not be able to do the task. In contrast, mild anger for failure can provide an indirect cue that one is capable. For example, “You can do better than this. You handed this paper in with no editing,” provides a cue to the student that he or she is capable of more.

    Unsolicited Help: Another low-ability cue for students is unsolicited help by the teacher (Graham & Barker, 1990). Graham and Barker found that, regardless of whether a helper was a peer or teacher, other students judged the student who received unsolicited help as lower in ability than non-helped peers. The important factor in this example is unsolicited. When the teacher consistently gives help to Sylvia before she requests it, this suggests that the teacher knows that she will not be able to do it.

    Ability Grouping: One powerful cue for ability that affects large groups of students are tracking according to ability groups. Students in both high and low tracks are defined by labels such as high ability, honors, low-achieving, slow, and average (Oakes, 1985). These labels are powerful cues about one’s ability. Oakes observed that students in the lower track are usually seen by others as dumb and also see themselves in this way. A label may have an adverse effect on students in the high-achieving class as well. Students in a high-track class may take this label as a cue that they naturally have high ability and then assume inflated self-concepts. This belief can interfere with students working to develop their academic skills.

    It is important that teachers be aware of the subtle cues that may have unintentional effects on students’ perception of ability. Commonly accepted practices of generous praise, minimal blame, sympathy, and unsolicited help can sometimes be interpreted by students as they have the low ability (M. D. Clark, 1997; Graham, 1991). M. D. Clark found that responses given to students with LD are often interpreted as low-ability cues. Graham further suggested that these cues raise important questions pertinent to the motivation of minority students such as African-Americans. For example, are minority students more likely to be targeted for feedback that conveys sympathy—thus receiving a cue for low ability? Reyna (2000) took this a step further, stating that labeling and indirect cues can lead to stable beliefs about ability and have the negative effect of stereotyping.

    Attribution Bias

    Attribution bias or Attributional bias is a predisposition to make certain attributional judgments that may be in error (Weiner, 1985). Several variations of attributional bias have been identified that are relevant to achievement settings. A common misjudgment is a hedonic bias, the tendency to attribute success to self rather than to attribute failure to self (Weiner, 2000).

    Previous knowledge can also lead to attributions that are erroneous (Frieze, 1980). Potential sources of errors in attributional judgments can be found in stereotypes about certain groups (Reyna, 2000). These preconceptions about certain groups can serve as ready-made explanations for why a student achieves or does not achieve. There is a danger that the stable, uncontrollable attribution for low performance will lead to lower expectations.

    The implication for educators is to recognize that a number of possible causes may explain any given success or failure. Thus, it is important to be aware of potential stereotypical attributional biases. Explore other possible causes by gathering more information when bias may be a factor (see Strategy).

    Strategy of Collect Attributional Information

    Simply ask students why they succeeded, failed, or improved.

    Some teachers elicit information by having students give their reasons for how well they did after assignments or exams.

    Attribution information can be obtained through the use of learning logs, in which students keep records and write about their goals, successes, and failures.

    Conduct an attributional task analysis of student performance. Is it because the student cannot or will not? A teacher may believe that a student is not performing well because he or she has the low ability or is lazy. Instead, the student may be performing low because he or she does not have the essential skills.

    Look for clues that will enable you to determine if the student has the essential skills. Does the student have prerequisite knowledge or skills? Does the task require formal reasoning whereas the student is functioning at the concrete reasoning level? Does the student have the necessary learning or memory strategies?

    If the student cannot, then teach the prerequisite skill or guide student to the appropriate source of help.

  • Do you want to be a BOSS?

    Do you want to be a BOSS?

    What is a BOSS? A person who is in charge of a worker or organization. A person in control of a group or situation. (In computer gaming) A particularly tough enemy, usually appearing at the end of a section or level.

    Definition of BOSS

    An individual that is usually the immediate supervisor of some number of employees and has certain capacities and responsibilities to make decisions. The term itself is not a formal title and is sometimes used to refer to any higher level employee in a company, including a supervisor, manager, director, or the CEO.

    BOSS as Supervisor

    Supervisor, when the meaning sought is similar to the foreman, foreperson, boss, overseer, cell coach, facilitator, monitor, or area coordinator, is the job title of a low-level management position that is primarily based on authority over a worker or charge of a workplace. A Supervisor can also be one of the most senior in the staff at the place of work, such as a Professor who oversees a Ph.D. dissertation. Supervision, on the other hand, can be performed by people without this formal title, for example by parents. The term Supervisor itself can be used to refer to any personnel who have this task as part of their job description.

    A BOSS is a Business Owner with Success Systems. In business, entrepreneurs create systems that cause continuous movement in their business. Before you even get started with your entrepreneurial endeavors, I want to give you some preliminary systems that will prepare you for the world of business. This is not a “how to start a business” guide, but rather a compass to point you in the right direction. If you have ever thought about starting a business or if you are on the fence about it, this post is here to give the encouragement you need to take that leap of faith. Kevin D. provides the keys to move you toward starting your own business:

    Be Creative: Creativity has no boundaries. Creativity has no limits. Creativity has endless possibilities. Do not allow fear to hinder you from unleashing that which is already inside of you. In order for you to do that, you have to think outside of the box. Tap into your imagination and bring forth that next big idea that will change the world. You have to give yourself permission to do so. Why? Your creativity is the key to unlocking your future. “You can’t use up creativity. The more you use the more you have” By Maya Angelou.

    Be a Dreamer: Dreams aren’t just images you see when you sleep. A real dream is a vision that births a passion that you cannot shake. Dreamers are individuals who make our world go round. Everything you see around you started off as a dream. It was inside somebody’s head before it manifested itself into our reality. Your dream has to be bigger than you. Therefore, when you do dream…dream BIG! “If you can Dream it, you can Achieve it.” By Walt Disney.

    Be a Strategist: Thinking that your business will automatically become a success is wishful and wrongful thinking. If you are going to be an entrepreneur, you have to be a strategist. Simply put, a strategist is an individual who establishes and applies a plan that points to the vision or dream. Not only is it imperative for you to know where you are going, but you also must know how you are going to get there. “All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.” By Sun Tzu.

    Be an Original: One of the worst things in the world for any entrepreneur to do is try to duplicate the look, brand, and success of another. You were created unique. Therefore, you and everything about you has to be unique. There has to be something, or maybe even a few things, that set you apart. So as you begin your entrepreneurial endeavors, find out what makes you different than the competition. Be the one that everyone wants to imitate. “It is better to fail in originality than to succeed in imitation.” By Herman Mellville.

    Be Inspired: There will be times where you will question what you do and why you are doing it. There will be times when discouragement will set in because your business is not doing what you expected and desired it to do. That is not the time for you to give up, but rather to find some sort of inspiration—whether it be through a story, testimony, a song, etc… Find a way to get your fire back even when things around you seem dim and dark. Business is difficult, and only those who are strong and persistent will endure will see success. “Inspiration is the rocket fuel that makes ordinary days into extraordinary!” By Gail Lynne Goodwyn.

    Be Passionate: You were placed here to solve a problem that only you can solve. This problem has to become your obsession. It should keep you awake at night. It should wake you up early in the morning. It should have you constantly writing down new ideas or new ways of accomplishing your goals. You shouldn’t truly rest until the thing that bothers you has been resolved. Some of the great business men and women before us worked long hours every day, sacrificing weekends, giving up vacations in pursuit of their passion to resolve that problem. Ultimately, that passion will become your paycheck. “Passion is the genesis of genius.” By Galileo Galilei.

    Be Mentored: For any person to think they know it all and that they don’t need help is simply idiotic and arrogant. The greatest asset a business person can have is a mentor….an individual or individuals who have been where you have been and done what you have done. Find someone that is doing what you desire to do or can at least give your insight on how to do things better. If you cannot have them physically present then read their materials, listen to their messages, and learn their history. Learn from their successes as well as their mistakes. Their ceiling very well may be your floor. “One of the greatest values of mentors is the ability to see ahead what others cannot see and to help them navigate a course to their destination.” By John C. Maxwell.

    Be Empowered: It is no accident that you are reading this e-Book. Do not be afraid of failing. Let your failures drive you to your success. Do not give up or give in but rather keep moving forward. You were placed on this planet on purpose, with a purpose, and for a purpose. You are more powerful than you know. You may be the next Steve Jobs, Magic Johnson, or Vera Wang. You have the potential within you that will change our world. There is greatness on the inside you to do amazing things. So do it…go be great and do great things. You have permission to do so! You have permission to be a BOSS. Just Do It. By Nike.

    Do you want to be a BOSS or own Business? so build your own way how to start? Where are you do it? How to carry full money for your business? The perfect IDEA for Your business.

  • Do You Really Want to your Own a Business?

    Do You Really Want to your Own a Business?

    If “Yes” So, this article of post little help you How to Start. “Hope springs eternal in the human breast,” said English poet and essayist Alexander Pope several centuries ago. He wasn’t describing people expanding or starting a business, but he may as well have been. Everyone who goes into business for themselves hopes to meet or surpass a set of personal goals.

    A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers. Businesses serve as a form of economic activity and are prevalent in capitalist economies, where most of them are privately owned and provide goods and services allocated through a market to consumers and customers in exchange for other goods, services, money, or other forms of exchange that hold intrinsic economic value. Businesses may also be social non-profit enterprises or state-owned public enterprises operated by governments with specific social and economic objectives. A business owned by multiple private individuals may form an incorporated company or jointly organize as a partnership. Countries have different laws that may ascribe different rights to the various business entities.

    The word “business” can refer to a particular organization or to an entire market sector (for example: “the financial sector”) or to the sum of all economic activity (“the business sector”). Compound forms such as “agribusiness” represent subsets of the concept’s broader meaning, which encompasses all activity by suppliers of goods and services.

    Sole Ownership: A sole proprietorship (ownership), also known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgments against the business. All assets of the business belong to a sole proprietor, including, for example, a computer infrastructure, any inventory, manufacturing equipment, or retail fixtures, as well as any real property owned by the sole proprietor.

    Do You Really Want to your Own a Business - Sole Ownership

    While your particular configuration is sure to be unique, perhaps you will agree with some of the ones I have compiled over the years from talking to hundreds of budding entrepreneurs.

    Independence: A search for freedom and independence is the driving force behind many businesspeople. Wasn’t it Johnny Paycheck who wrote the song “Take This Job and Shove It?”

    Personal Fulfillment: For many people, owning a business is a genuinely fulfilling experience, one that lifetime employees never know.

    Lifestyle Change: many people find that while they can make a good income working for other people, they are missing some of life’s precious moments. With the flexibility of small business ownership, you can take time to stop and smell the roses.

    Respect: Successful small business owners are respected, both by themselves and their peers.

    Money: You can get rich in a small business, or at least do very well financially. most entrepreneurs don’t get wealthy, but some do. If money is your motivator, admit it.

    Power: When it is your business, you can have your employees do it your way. There is a little Ghengis Khan in us all, so don’t be surprised if power is one of your goals. If it is, think about how to use this goal in a constructive way.

    Right Livelihood: From natural foods to solar power to many types of service businesses, a great many cause-driven small businesses have done very well by doing good.

    If owning a small business can help a person accomplish these goals, it’s small wonder that so many are started. Unfortunately, while the potential for great success exists, so do many risks. Running a small business may require that you sacrifice some short-term comforts for long-term benefits. It is hard, demanding work that requires a wide variety of skills few people are born with. But even if you possess (or more likely acquire) the skills and determination you need to successfully run a business, your business will need one more critical ingredient: money.

    You need money to start your business, money to keep it running, and money to make it grow. This is not the same thing as saying you can guarantee success in your small business if you begin with a fat wallet. now, let me confess to one major bias here. I believe that most small business owners and founders are better off starting small and borrowing, or otherwise raising, as little money as possible. Put another way, there is no such thing as “raising plenty of capital to ensure success.” Unless you, as the prospective business founder, learn to get the most mileage out of every dollar, you may go broke and will surely spend more than you need to. But that doesn’t mean that you should try to save money by selling cheap merchandise or providing marginal services. In today’s competitive economy, your customers want the best you can give them at the best price. They will remember the quality of what they get from you long after they have forgotten how much they paid.

    In practical terms, that means you must buy only the best goods for your customers. Anything that affects the image your business has in your customer’s mind should be first-rate. It also means that you shouldn’t spend money on things that don’t affect the customer. For example, unless you’re a real estate broker your customers probably won’t care if you drive an old, beat-up car to an office in a converted broom closet, as long as you provide them an honest product or service for an honest price. Save the nice car, fancy office, and mobile telephone until after your business is a success.

    Self-Evaluation Exercises

    Here’s a question to ponder: Are you the right person for your business? Because running a business is a very demanding endeavor that can take most of your time and energy, your business probably will suffer if you’re unhappy. Your business can become an albatross around your neck if you don’t have the skills and temperament to run it. Simply put, I’ve learned that no business, whether or not it has sound financial backing, is likely to succeed unless you, as the prospective owner, make two decisions correctly:

    • You must honestly evaluate yourself to decide whether you possess the skills and personality needed to succeed in a small business.
    • You must choose the right business.

    A small business is a very personal endeavor. It will honestly reflect your opinions and attitudes, whether or not you design it that way. Think of it this way: The shadow your business casts will be your shadow. If you are sloppy, rude, crafty, or naively trusting, your business will mirror these attributes. If your personal characteristics are more positive than those, your business will be more positive, too. To put this concretely, suppose you go out for the Sunday paper and are met by a newsie who is groggy from a hangover and badmouths his girlfriend in front of you. chances are that next Sunday will find you at a different newsstand.

    I’m not saying you need to be psychologically perfect to run a small business. But to succeed, you must ask people for their money every day and convince a substantial number of them to give it to you. By providing your goods or services, you will create intimate personal relationships with a number of people. It makes no difference whether you refer to people who give you money as clients, customers, patients, members, students, or disciples. It makes a great deal of difference to your chances of ultimate success if you understand that these people are exchanging their money for the conviction that you are giving them their money’s worth.

    The following self-evaluation exercises will help you assess whether you have what it takes to successfully run a small business. Take out a blank sheet of paper or open a computer file.

    Your Strong and Weak Points

    Take a few minutes to list your personal and business strengths and weaknesses. Include everything you can think of, even if it doesn’t appear to be related to your business. For instance, your strong points may include the mastery of a hobby, your positive personality traits, and your sexual charisma, as well as your specific business skills. Take your time and be generous.

    To provide you with a little help, I include a sample list for Antoinette Gorzak, a personal friend who has what she hopes is a good business idea: a slightly different approach to selling women’s clothing. You’ll get to know her better as we go along. Her strengths, weaknesses, fantasies, and fears are surely different from yours. So, too, almost certainly, is the business she wants to start. So be sure to make your own lists—don’t copy Antoinette’s.

    Your list of strong and weak points will help you see any obvious conflicts between your personality and the business you’re in or want to start. For example, if you don’t like being around people but plan to start a life insurance agency with you as the primary salesperson, you may have a personality clash with your business. The solution might be to find another part of the insurance business that doesn’t require as much people contact.

    Unfortunately, many people don’t realize that their personalities will have a direct bearing on their business success. An example close to the experience of folks at nolo involves bookstores. In the years since nolo began publishing, they have seen all sorts of people, from retired librarians to unemployed Ph.D.’s, open bookstores. A large percentage of these stores have failed because the skills needed to run a successful bookstore involve more than a love of books.

    General and Specific Skills Your Business Needs

    Businesses need two kinds of skills to survive and prosper: Skills for business in general and skills specific to the particular business. For example, every business needs someone to keep good financial records. on the other hand, the tender touch and manual dexterity needed by glassblowers are not skills needed by the average paving contractor. Next, take a few minutes and list the skills your business needs. don’t worry about making an exhaustively complete list, just jot down the first things that come to mind. make sure you have some general business skills as well as some of the more important skills specific to your particular business.

    If you don’t have all the skills your business needs, your backers will want to know how you will make up for the deficiency. For example, let’s say you want to start a trucking business. You have a good background in maintenance, truck repair, and long distance driving, and you know how to sell and get work. Sounds good so far—but, let’s say you don’t know the first thing about bookkeeping or cash flow management and the thought of using a computer makes you nervous. Because some trucking businesses work on large dollar volumes, small profit margins, and slow-paying customers, your backers will expect you to learn cash flow management or hire someone qualified to handle that part of the business.

    Your Likes and Dislikes

    Take a few minutes and make a list of the things you really like doing and those you don’t enjoy. Write this list without thinking about the business—simply concentrate on what makes you happy or unhappy.

    If you enjoy talking to new people, keeping books, or working with computers, be sure to include those. Put down all the activities you can think of that give you pleasure. Antoinette’s list is shown as an example.

    As a business owner, you will spend most of your waking hours in the business, and if it doesn’t make you happy, you probably won’t be very good at it. If this list creates doubts about whether you’re pursuing the right business, I suggest you let your unconscious mind work on the problem. most likely, you’ll know the answer after one or two good nights’ sleep.

    Specific Business Goals

    Finally, list your specific business goals. Exactly what do you want your business to accomplish for you? Freedom from 9 to 5? money—and if so, how much? more time with the children? making the world or your little part of it a better place? It’s your wish list, so be specific and enjoy writing it.

    How to Use the Self-evaluation Lists?

    After you’ve completed the four self-evaluation lists, spend some time reading them over. Take a moment to compare the skills needed in your business to the list of skills you have. do you have what it takes?

    Show them to your family and, if you’re brave, to your friends or anyone who knows you well and can be objective. of course, before showing the lists to anyone, you may choose to delete any private information that isn’t critical to your business. If you show your lists to someone who knows the tough realities of running a successful small business, so much the better. You may want to find a former teacher, a fellow employee, or someone else whose judgment you respect.

    What do they think? do they point out any obvious inconsistencies between your personality or skills and what you want to accomplish? If so, pay attention. Treat this exercise seriously and you will know yourself better. oh, and don’t destroy your lists. Assuming you go ahead with your business and write your business plan, the lists can serve as background material or even become part of the final plan.

    You have accomplished several things if you have followed these steps. You have looked inside and asked yourself some basic questions about who you are and what you are realistically qualified to do. As a result, you should now have a better idea of whether you are willing to pay the price required to be successful as a small businessperson. If you are still eager to have a business, you have said, “Yes, I am willing to make short-term sacrifices to achieve long-term benefits and to do whatever is necessary—no matter the inconvenience— to reach my goals.”

    Reality Check: Banker’s Analysis

    Banks and institutions that lend money have a lot of knowledge about the success rate of small businesses. Bankers are often overly cautious in making loans to small businesses. For that very reason it makes sense to study their approach, even though it may seem discouraging at first glance.

    Do You Really Want to your Own a Business - Bankers

    Banker’s Ideal

    Bankers look for an ideal loan applicant, who typically meets these requirements:

    • For an existing business, a cash flow sufficient to make the loan payments.
    • For a new business, an owner who has a track record of profitably owning and operating the same sort of business.
    • An owner with a sound, well-thought-out business plan.
    • An owner with financial reserves and personal collateral sufficient to solve the unexpected problems and fluctuations that affect all businesses.

    Why does such a person need a loan, you ask? He or she probably doesn’t, which, of course, is the point. People who lend money are most comfortable with people so close to their ideal loan candidate that they don’t need to borrow. However, to stay in business themselves, banks and other lenders must lend out the money deposited with them. To do this, they must lend to at least some people whose creditworthiness is less than perfect.

    Measuring Up to the Banker’s Ideal

    Who are these ordinary mortals who slip through bankers’ fine screens of approval? And more to the point, how can you qualify as one of them? Your job is to show how your situation is similar to the banker’s ideal.

    A good bet is the person who has worked for, or preferably managed, a successful business in the same field as the proposed new business. For example, if you have profitably run a clothing store for an absentee owner for a year or two, a lender may believe you are ready to do it on your own. All you need is a good location, a sound business plan, and a little capital. Then, watch out Neiman-Marcus!

    Further away from a lender’s ideal is the person who has sound experience managing one type of business, but proposes to start one in a different field. let’s say you ran the most profitable hot dog stand in the Squaw valley ski resort, and now you want to market computer software in the Silicon Valley of California. In your favor is your experience running a successful business. on the negative side is the fact that computer software marketing has

    no relationship to hot dog selling. In this situation, you might be able to get a loan if you hire people who make up for your lack of experience. At the very least, you would need someone with a strong software marketing background, as well as a person with experience managing retail sales and service businesses. naturally, both of those people are most desirable if they have many years of successful experience in the software marketing business, preferably in California.

    Use the Banker’s Ideal

    It’s helpful to use the bankers’ model in your decision-making process. Use a skeptical attitude as a counterweight to your optimism to get a balanced view of your prospects. What is it that makes you think you will be one of the minority of small business owners who will succeed? If you don’t have some specific answers, you are in trouble. most new businesses fail, and the large majority of survivors do not genuinely prosper.

    Many people start their own business because they can’t stand working for others. They don’t have a choice. They must be either boss or bum. They are more than willing to trade security for the chance to call the shots. They meet a good chunk of their goals when they leave their paycheck behind. This is fine as far as it goes, but in my experience, the more successful small business owners have other goals as well.

    A small distributor we know has a well thought-out business and a sound business plan for the future. Still, he believes that his own personal commitment is the most important thing he has going for him. He puts it this way: “I break my tail to live up to the commitments I make to my customers. If a supplier doesn’t perform for me, I’ll still do everything I can to keep my promise to my customer, even if it costs me money.” This sort of personal commitment enables this successful business owner to make short-term adjustments to meet his long-range goals. And while it would be an exaggeration to say he pays this price gladly, he does pay it.

    Note: This article of “Do You Really Want to your Own a Business?” from Internet and book of How to Write a Business Plan, only for share knowledge with help.

  • What is a Business Plan?

    What Is a Business Plan?

    A business plan is a written statement that describes and analyzes your business and gives detailed projections about its future. A business plan also covers the financial aspects of starting or expanding your business—how much money you need and how you’ll pay it back.

    Writing a business plan is a lot of work. So why take the time to write one? The best answer is the wisdom gained by literally millions of business owners just like you. Almost without exception, each business owner with a plan is pleased she has one, and each owner without a plan wishes he had written one.

    Why Write a Business Plan?

    Why Write a Business Plan?
    Why Write a Business Plan?

    Here are some of the specific and immediate benefits you will derive from writing your business plan.

    Helps You Get Money

    most lenders or investors require a written business plan before they will consider your proposal seriously. Even some landlords require a sound business plan before they will lease you space. Before making a commitment to you, they want to see that you have thought through critical issues facing you as a business owner and that you really understand your business. They also want to make sure your business has a good chance of succeeding.

    In my experience, about 35% to 40% of the people currently in business do not know how money flows through their business. Writing a business plan with this book teaches you where money comes from and where it goes. Is it any wonder that your backers want to see your plan before they consider your financial request?

    There are as many potential lenders and investors as there are prospective business owners. If you have a thoroughly thought-out business and financial plan that demonstrates a good likelihood of success and you are persistent, you will find the money you need. of course, it may take longer than you expect and require more work than you expect, but you will ultimately be successful if you believe in your business.

    Helps You Decide to Proceed or Stop

    one major theme of the book may surprise you. It’s as simple as it is important. You, as the prospective business owner, are the most important person you must convince of the soundness of your proposal. Therefore, much of the work you are asked to do here serves a dual purpose. It is designed to provide answers to all the questions that prospective lenders and investors will ask.

    But it will also teach you how money flows through your business, what the strengths and weaknesses in your business concept are, and what your realistic chances of success are.

    The detailed planning process described in this book is not infallible—nothing is in a small business—but it should help you uncover and correct flaws in your business concept. If this analysis demonstrates that your idea won’t work, you’ll be able to avoid starting or expanding your business. This is extremely important. It should go without saying that a great many businesspeople owe their ultimate success to an earlier decision not to start a business with built-in problems.

    Let’s You Improve Your Business Concept

    Writing a plan allows you to see how changing parts of the plan increases profits or accomplishes other goals. You can tinker with individual parts of your business with no cash outlay. If you’re using a computer spreadsheet to make financial projections, you can try out different alternatives even more quickly. This ability to fine-tune your plans and business design increases your chances of success.

    For example, let’s say that your idea is to start a business importing Korean leather jackets. Everything looks great on the first pass through your plan. Then you read an article about the declining exchange ratio of U.S. dollars to Korean currency. After doing some homework about exchange rate fluctuations, you decide to increase your profit margin on the jackets to cover anticipated declines in dollar purchasing power. This change shows you that your prices are still competitive with other jackets and that your average profits will increase. And you are now covered for any likely decline in exchange rates.

    Improves Your Odds of Success

    one way of looking at business is that it’s a gamble. You open or expand a business and gamble you’re and the bank’s or investor’s money. If you’re right, you make a profit and pay back the loans and everyone’s happy. But if your estimate is wrong, you and the bank or investors can lose money and experience the discomfort that comes from failure. (of course, a bank probably is protected because it has title to the collateral you put up to get the loan.)

    Writing a business plan helps beat the odds. most new, small businesses don’t last very long. And, most small businesses don’t have a business plan. Is that only a coincidence, or is there a connection between these two seemingly unconnected facts? my suggestion is this: let someone else prove the connection wrong. Why not be prudent and improve your odds by writing a plan?

    Helps You Keep on Track

    many business owners spend countless hours handling emergencies, simply because they haven’t learned how to plan ahead. This book helps you anticipate problems and solve them before they become disasters.

    A written business plan gives you a clear course toward the future and makes your decision making easier. Some problems and opportunities may represent a change of direction worth following, while others may be distractions that referring to your business plan will enable you to avoid. The black and white of your written business plan will help you face facts if things don’t work out as expected. For example, if you planned to be making a living three months after start-up, and six months later you’re going into the hole at the rate of $100 per day, your business plan should help you see that changes are necessary. It’s all too easy to delude yourself into keeping a business going that will never meet its goals if you approach things with a “just another month or two and I’ll be there” attitude, rather than comparing your results to your goals.

    Issues Beyond the Plan

    I have written this book to provide you with an overview of the issues that determine success or failure in a small business. Experienced lenders, investors, and entrepreneurs want a plan that takes these issues into account. of course, this book can’t cover everything. Here are some of the key business components that are left out of this initial planning process.

    Bookkeeping and Accounting

    This book discusses the numbers and concepts you as the business owner need to open and manage your small business. You have the responsibility to create bookkeeping and accounting systems and make sure they function adequately. One of the items generated by your

    accounting system will be a balance sheet. A balance sheet is a snapshot at a particular moment in time that lists the money value of everything you own and everything you owe to someone else.

    Taxes

    While there are a few mentions of tax issues throughout the book, most of the planning information doesn’t discuss how taxes will be calculated or paid. The book focuses its efforts on making a profit and a positive cash flow. If you make a profit, you’ll pay taxes and if you don’t make a profit, you’ll pay fewer taxes. A cPA or tax advisor can help you with tax strategies.

    Securities Laws

    If you plan to raise money by selling shares in a corporation or limited partnership, you’ll fall under state or federal securities regulations. You can, however, borrow money or take in a general partner without being affected by securities laws. A complete discussion of these issues is beyond the scope of this book. For now, take note that you must comply with securities regulations after you complete your plan and before you take any money into your business from selling shares or partnership interests.

    Your Management Skill

    This book shows you how to write a very good business plan and loan application. However, your ultimate success rests on your ability to implement your plans—on your management skills. If you have any doubts about your management ability, check out the resources other article. Also see another posts for a thought-stimulating discussion of management.

    Issues Specific to Your Business

    How successfully your business relates to the market, the business environment, and the competition may be affected by patents, franchises, foreign competition, location, and the like. of necessity, this book focuses on principles common to all businesses and does not discuss the specific items that distinguish your business from other businesses. For example, this post doesn’t discuss how to price your products to meet your competition; I assume that you have enough knowledge about your chosen business to answer that question.

  • What is CSR?

    What is CSR (Corporate Social Responsibility)?

    Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society. A business’s CSR can encompass a wide variety of tactics, from giving away a portion of a company’s proceeds to charity, to implementing “greener” business operations.

    Definition of Corporate Social Responsibility (CSR)

    The movement aimed at encouraging companies to be more aware of the impact of their business on the rest of society, including their own stakeholders and the environment. Corporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.

    CSR is a concept with many definitions and practices. The way it is understood and implemented differs greatly from each company and country. Moreover, CSR is a very broad concept that addresses many and various topics such as human rights, corporate governance, health and safety, environmental effects, working conditions and contribution to economic development. Whatever the definition is, the purpose of CSR is to drive change towards sustainability.

    Although some companies may achieve remarkable efforts with unique CSR initiatives, it is difficult to be on the forefront on all aspects of CSR. Considering this, the example below provides good practices on one aspect of CSR environmental sustainability.

    Corporate Social Responsibility
    Corporate Social Responsibility

    Example; Unilever is a multinational corporation, in the food and beverage sector, with a comprehensive CSR strategy. The company has been ranked “Food Industry leader’ in the Dow Jones Sustainability World Indexes for the 11 consecutive years and ranked 7th in the ‘Global 100 Most Sustainable Corporations in the World.”

    One of the major and unique initiatives is the ‘sustainable tea’ program.  On a partnership-based model with the Rainforest Alliance (an NGO), Unilever aims to source all of its Lipton and PG Tips tea bags from Rainforest Alliance Certified™ farms by 2015.  The Rainforest Alliance Certification offers farms a way to differentiate their products as being social, economically and environmentally sustainable.

    Other Definitions

    The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts used the following definition:

    Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large The same report gave some evidence of the different perceptions of what this should mean for a number of different societies across the world. Definitions as different as CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government of Ghana, through to CSR is about business giving back to society from the Philippines.

    Traditionally in the United States, CSR has been defined much more in terms of a philanthropist model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving.

    What is the Social Responsibility of Business?

    Ever since Milton Friedman famously proclaimed “The Social Responsibility of Business is to Increase its Profits” (NYTimes 1970), pundits have pondered whether his purist interpretation was really the only way.

    Profit is certainly a lot easier to quantify than something like ‘happiness’, but the intangible benefits of good, honest business clearly go way beyond pure finance Must the word ‘profit’ always refer to money in the strictest sense?

    Collected on this page are various interpretations of the idea of “social responsibility” and the responsibility of business to take an active, passive or indifferent role in building a more sustainable world.

    There are a few broad categories of social responsibility that many of today’s businesses are practicing:

    I) Environmental efforts: One primary focus of corporate social responsibility is the environment. Businesses regardless of size have a large carbon footprint. Any steps they can take to reduce those footprints are considered both good for the company and society as a whole.

    II) Philanthropy: Businesses also practice social responsibility by donating to national and local charities. Businesses have a lot of resources that can benefit charities and local community programs.

    III) Ethical labor practices: By treating employees fairly and ethically, companies can also demonstrate their corporate social responsibility. This is especially true of businesses that operate in international locations with labor laws that differ from those in the United States.

    IV) Volunteering: Attending volunteer events says a lot about a company’s sincerity. By doing good deeds without expecting anything in return, companies are able to express their concern for specific issues and support for certain organizations.

    Examples of Corporate Social Responsibility

    Corporate Social Responsibility (CSR)

    While many companies now practice some form of social responsibility, some are making it a core of their operations. Ben and Jerry’s, for instance, uses only fair trade ingredients and has developed a sustainability program for dairy farms in its home state of Vermont. Starbucks has created its C.A.F.E. Practices guidelines, which are designed to ensure the company sources sustainably grown and processed coffee by evaluating the economic, social and environmental aspects of coffee production. Tom’s Shoes, another notable example of a company with CSR at its core, donates one pair of shoes to a child in need for every pair a customer purchases.

    However, Stevens said companies need to really understand what their core social purpose is and how that aligns with their stated mission, to create a cohesive CSR strategy.

    For example, Stevens said that Kashi, a Kellogg’s brand, wants to increase organic farming and is one of the few certified organic kinds of cereal. Since only 1 percent of U.S. farmland is actually organic, the breakfast brand worked with Quality Insurance International to help certify new organic farmers across the nation.

  • Social Responsibility

    What is Meant by Social Responsibility?

    Social responsibility is an ethical framework and suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems. A trade-off may exist between economic development, in the material sense, and the welfare of the society and environment, though this has been challenged by many reports over the past decade. Social responsibility means sustaining the equilibrium between the two. It pertains not only to business organizations but also to everyone whose any action impacts the environment. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals.

    Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. For instance, if a company follows the United States Environmental Protection Agency (EPA) guidelines for emissions of dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have; they would be less likely to have the EPA investigate them for environmental concerns. “A significant element of current thinking about privacy, however, stresses “self-regulation” rather than market or government mechanisms for protecting personal information”. According to some experts, most rules and regulations are formed due to public outcry, which threatens profit maximization and therefore the well-being of the shareholder, and that if there is not outcry there often will be limited regulation.

    Social responsibility means that the government (including public corporations), NGOs, business organizations, and individuals have a responsibility to society to eliminate corruption and irresponsible or unethical behavior that might harm its people or the environment.

    Corporate social responsibility, therefore, refers to a business’s obligation to set policies, make decisions, and follow courses of action that are desirable in terms of the values and objectives of society — its customers, employees, and people in the community.

    Businesses accept social responsibilities when they take their objectives beyond what the business, the economy, and the law require and do what they feel are ethically and socially desirable. For example, such ethical and desirable actions might include raising the safety standards of product and continuously striving to care for the well-being of workers and their customers.

    These ethical and desirable actions that businesses may choose to undertake may be well above the legally required standards.

    Look at the following examples of Namibian businesses fulfilling their social responsibility towards the Namibian society:

    Many companies are increasingly working on cultivating a social responsibility, whatever their actual practices. They are eager to prove that you can save the planet, help the poor and make money at the same time.

    As an entrepreneur how can you behave in an ethically social responsible way towards the following?

    Employees Responsibility

    The main responsibility of any business is towards its employees. It is imperative that a business always looks for ways to support and empower its employees. A happy workforce, a well-motivated and a loyal workforce, leads to improvements in productivity and quality. Your responsibility towards your workers goes beyond just paying them salaries. A socially responsible business tries to ensure that its working environment is free from sexual harassment and discrimination.

    Customers Responsibility

    Customers Social Responsibility

    Even if you are an entrepreneur, you are also a customer at a business where you buy your products. It is, therefore, important that you live and practice the notion, “Do unto others as you would have them do unto you”. That means that you should treat your customers in the same way as you expect to be treated as a customer by other businesses. A business’s social responsibility actions towards its customers are rewarded by loyal customers and by their word-of-mouth advertising.

    Government Responsibility

    The acceptance of social responsibility has increased in the government because through policies, the government is forcing businesses to act responsibly. When a firm act in a socially responsible manner, it sets policies, makes decisions and follows courses of action that are desirable in terms of the values and objectives of its different stakeholders. To pay tax is a business’ responsibility towards the Government of a country.

    Society/Community Responsibility

    Social investment looks at what a business is doing for a community. Businesses can engage in social responsibility programs to help the community fight their social problems, such as drug addiction in impoverished areas or providing recreation activities for the youth. These programs normally aim to improve standards of living and create more stable and peaceful communities.

    Corporate Responsibility

    Corporate Social Responsibility
    Corporate Social Responsibility

    Corporate social responsibility or CSR has been defined by Lord Holme and Richard Watts of the World Business Council for Sustainable Development’s publication “Making Good Business Sense” as ” the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.” CSR is one of the newest management strategies where companies try to create a positive impact on society while doing business. Evidence suggests that CSR taken on voluntarily by companies will be much more effective than CSR mandated by governments. There is no clear-cut definition of what CSR comprises. Every company has different CSR objectives through the main motive is the same. All companies have a two-point agenda to improve qualitatively (the management of people and processes) and quantitatively (the impact on society). The second is as important as the first and stakeholders of every company are increasingly taking an interest in “the outer circle”-the activities of the company and how these are impacting the environment and society. The other motive behind this is that the companies should not be focused only on the maximization of profits.

    Social responsibility, therefore, is about holding a group, organization or company accountable for the effects it has on the people within the company, people working with the company, the community in which the company operates and those who buy from the company.

    How Does an Individual Become Socially Responsible?

    The Workshop for Civic Initiatives Foundation (WCIF), Bulgaria, describes ISR in its position statement on Social Responsibility as, “The individual social responsibility includes the engagement of each person towards the community where he lives, which can be expressed as an interest towards what’s happening in the community, as well as in the active participation in the solving of some of the local problems. Under community, we understand the village, the small town or the residential complex in the big city, where lives every one of us. Each community lives its own life that undergoes a process of development all the time. And every one of us could take part in that development in different ways, for example by taking part in cleaning of the street on which he lives, by taking part in organization of an event, connected with the history of the town or the village or by rendering social services to children without parents or elderly people. The individual social responsibility also could be expressed in making donations for significant for the society causes – social, cultural or ecological. There are many ways of donating, as for example donating of goods or donating money through a bank account or online”

    Social Responsibility can be “negative,” in that it is a responsibility to refrain from acting (resistance stance) or it can be “positive,” meaning there is a responsibility to act (proactive stance). Being socially responsible not only requires participating in socially responsible activities like recycling, volunteering and mentoring, but to actually make it a lifestyle. Only through a commitment to embrace and embed social responsibility into your personal value and belief system can you truly become socially responsible in all you do.

    What is a Social Entrepreneur?

    Entrepreneur Social Responsibility
    Entrepreneur Social Responsibility

    Social entrepreneurs work to solve critical social problems and address basic unmet needs through entrepreneurship. Their innovations create system change, improving the lives of underserved or marginalized groups.

    Despite the increased attention that social entrepreneurship has received in recent years, there is no precise definition. Various organizations describe social entrepreneurship differently:

    Ashoka defines social entrepreneurs as “individuals with innovative solutions to society’s most pressing social problems” who “find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to move in different directions.”

    The Skoll Foundation calls social entrepreneurs “society’s change agents, creators of innovations that disrupt the status quo and transform our world.”

    In the Stanford Social Innovation Review, Roger L. Martin and Sally Osberg offer a more rigorous definition. A social entrepreneur is “someone who targets an unfortunate but stable equilibrium that causes the neglect, marginalization, or suffering of a segment of humanity; who brings to bear on this situation his or her inspiration, direct action, creativity, courage, and fortitude; and who aims for and ultimately affects the establishment of a new stable equilibrium that secures permanent benefit for the targeted group and society at large.”

  • Who Changing Demographics of Entrepreneurs?

    Who Changing Demographics of Entrepreneurs?

    Demographics of Entrepreneurs; Entrepreneurship traditionally defines as the process of designing, launching and running a new business, which typically begins as a small business, such as a startup company, offering a product, process or service for sale or hire. It defines as the “capacity and willingness to develop, organize, and manage a business venture along with any of its risks to make a profit”.

    Here are explain common questions in Corporate, Who Changing Demographics of Entrepreneurs?

    While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risk involves in launching a start-up, a significant proportion of businesses have to close, due to a “Lack of funding, bad business decisions, an economic crisis or a combination of all of these” or due to lack of market demand. In the 2000s, the definition of “Entrepreneurship” has expand to explain how and why some individuals (or teams) identify opportunities, evaluate them as viable, and then decide to exploit them, whereas others do not, and, in turn, how entrepreneurs use these opportunities to develop new products or services, launch new firms or even new industries and create wealth.

    Definitions of Entrepreneurs:

    Traditionally, an entrepreneur defines as;

    “A person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.” “Rather than working as an employee, an entrepreneur runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur commonly sees as a business leader and innovator of new ideas and business processes.”

    Entrepreneurs tend to be good at perceiving new business opportunities and they often exhibit positive biases in their perception (i.e., a bias towards finding new possibilities and seeing unmet market needs) and a pro-risk-taking attitude that makes them more likely to exploit the opportunity.

    “Entrepreneurial spirit characterizes by innovation and risk-taking.”

    While entrepreneurship often associates with new, small, for-profit start-ups, entrepreneurial behavior can see in small, medium and large-sized firms, new and established firms and in for-profit and not-for-profit organizations, including voluntary sector groups, charitable organizations, and government.

    For example, in the 2000s, the field of social entrepreneurship identified, in which entrepreneurs combine business activities with humanitarian, environmental or community goals.

    Now, Here is Who Changing Demographics of Entrepreneurs:

    The following demographics of entrepreneurs how to changing below explains;

    Over the past 10 years, the demographic makeup of entrepreneurial firms has changed in the United States and around the world. Of the 27.5 million businesses in the United States, women, minorities, seniors, and young people own an increasingly larger number of them. This is an exciting development for the entrepreneurial sector of the U.S economy.

    Women Entrepreneurs:

    While men are still more likely to start businesses than women, the number of women-owned businesses is increasing. According to the U.S. Census Bureau, there were 6.5 million privately-held women-owned firms in the United States in 2002, the most recent year the U.S. Census Bureau collected ownership data. These firms generated an estimated $940 billion in sales and employed 7.1 million people. The number of women-owned firms increased by 19.8 percent from 1997 to 2002, compared with a growth rate of 10.3 percent for United States firms overall.

    According to a survey of both women-owned and men-owned businesses in the United States, the average age of the individuals who lead women-owned firms is 44.7 years old. A total of 52.7 percent of women-owned firms are home-based, 31.9 percent are multi-owner firms, and 19.5 percent were started for less than $2,000. The top industry for women-owned businesses is retail (19 percent) followed by professional, management, and educational services (16.3 percent). Women-owned firms still trail male-owned businesses in terms of sales and profits. The average women-owned firm has annual sales of $60,264 and annual profits of $14,549, compared to annual sales of $118,987 and profits of $30,373 for male-owned businesses.

    There are a growing number of groups that support and advocate for women-owned businesses. An example is Count Me In (www.makemineamillion.org), which is the leading national not-for-profit provider of resources, business education, and community support for women entrepreneurs.

    Minority Entrepreneurs:

    There has been a substantial increase in minority entrepreneurs in the United States from 1996 to 2010. The biggest jump has come in Latino entrepreneurs, which increased from 11 percent to 23 percent from 1996 to 2010, followed by Asian entrepreneurs, which jumped from 4 percent to 6 percent during the same period. While these numbers are encouraging, in general, the firms created by minority entrepreneurs lag behind averages for all firms in terms of economic indicators. The Kauffman Foundation is one group that actively engages in research to not only track the growth in minority entrepreneurs but to better understand how to strengthen the infrastructures and networks to enable minority entrepreneurs to reach higher levels of financial success.

    Similar to women entrepreneurs, an important factor facilitating the growth of minority entrepreneurs is the number of organizations that promote and provide assistance. Examples include the Latin Business Association, Black Business Association, National Indian Business Association, The National Council of Asian American Business Associations, and the Minority Business Development Agency, which is part of the United States Department of Commerce.

    Senior Entrepreneurs:

    The increase in entrepreneurial activity among senior entrepreneurs, consisting of people 55 years and older, between 1996 and 2010 is substantial (from 14 percent to 23 percent). This increase attribute to several factors, including corporate downsizing, an increasing desire among older workers for more personal fulfillment in their lives, and growing worries among seniors that they need to earn additional income to pay for future health care services and other expenses. Many people in the 55 and older age range have substantial business experience, financial resources that they can draw upon, and excellent vigor and health.

    There are several interesting statistics associated with the increasing incidence of senior entrepreneurs. For example, 39 is now the average age of the founders of technology companies in the United States, with twice as many over age 50 as under age 25. Similarly, the steady increase in life expectancy means that Americans are not only living longer, but are living healthier longer, and are likely to remain engaged in either a job or an entrepreneurial venture longer in their lives than earlier generations.

    Young Entrepreneurs:

    Interestingly, a drop in new entrepreneurial activity for people in the 20 to 34 age range occurred between 1996 and 2010 (from 35 percent in 1996 to 26 percent in 2010); nonetheless, the number of young people interested in entrepreneurship remains strong. At the high school and younger level, according to a Harris Interactive survey of 2,438 individuals ages 8 to 21, 40 percent said they’d like to start their own business someday. A total of 59 percent of the 8- to 21-year-olds said they know someone who has started his or her own business. The teaching of entrepreneurship courses is becoming increasingly common in both public and private high schools. Not-for-profit agencies involving in these efforts too.

    The Network for Teaching Entrepreneurship (NFTE), for example, provides entrepreneurship education programs to young people from low-income communities. The organization’s largest annual event calls “Lemonade Day” and held each May. In 2011, over 120,000 kids attended one-day entrepreneurial training sessions in 31 cities. The program teaches children and teens how to borrow money and repay investors who help start their stands, and what to do with the profit, including donating some to nonprofit causes. Since its founding, the NFTE has reached more than 300,000 young people, and currently, has programs in 21 states and 10 foreign countries.

    In addition to the NFTE,

    A growing number of colleges and universities are offering entrepreneurship-focused programs for high school students. Babson College, for example, offers three Summer Study Programs for high school students. The first two programs, Babson Entrepreneur Development Experience and Babson Idea Generation Program, are resident programs for high school students entering their junior or senior year. Members of the Babson faculty teach in these programs; each program lasts seven weeks. The third program, Service Learning Experience, is a nonresident program for high school sophomores who are passionate about social outreach.

    On college campuses, interest in entrepreneurship education is at an all-time high, as will be described throughout this article. More than 2,000 colleges and universities in the United States, which is about two-thirds of the total, offer at least one course in entrepreneurship. Although the bulk of entrepreneurship education takes place within business schools, many other colleges and departments are offering entrepreneurship courses as well—including engineering, agriculture, theater, dance, education, law, and nursing.

    Who Changing Demographics of Entrepreneurs Bulletin board
    Who Changing Demographics of Entrepreneurs? Bulletin board image from Pixabay.

    Notes: Here are read it Who Changing Demographics of Entrepreneurs? Would you like more read it; What is an Entrepreneur?, and also read it What Is Entrepreneurship?, don’t forget read it; Why Become an Entrepreneur?, and Common Myths About Entrepreneurs.