Ems Term 3 Worksheet

ECONOMIC AND MANAGEMENT SCIENCE
Entrepreneurs: Characteristics and skills

Case Study 1: The characteristics of a successful entrepreneur
Starting small, growing big Anthony Delport likes to try out new ideas and
opportunities, especially those that involve new technology. In 1990, Anthony and
some friends started a company that is today known as ‘Incredible Connection’. The
company was listed in 1997 and is probably one of the biggest computer retailers in
South Africa. Anthony says that he has become successful because he always
learns from his mistakes. He believes that every entrepreneur is unique, but that
there are certain characteristics that are common to all successful entrepreneurs.
According to Anthony, entrepreneurs should be enthusiastic and love what they do.
However, they also need to be committed to achieving the goals of the business.
To do this, they need to be determined, energetic and have an ability to complete
tasks. One of an entrepreneur’s most difficult problems is that you usually have to try
new ideas more than once and experience failure before you reach success. This
takes up a lot of time.
Entrepreneurs need to develop ideas that excite them. One of the hardest things an
entrepreneur has to do, is never to give up. Once the entrepreneur has developed
the idea, the next problem is finding the money to get the business going. Anthony
believes that you shouldn’t think that a big business is better than a small business.
It is very important to keep doing research.
According to Anthony, you should concentrate on cash, not profits, when you start
your business. You should focus on achieving your goals, but always be looking out
for new business ideas and opportunities.
Finally, when you are successful, don’t forget the team who helped you create your
business.
Activity 2: Characteristics of a successful entrepreneur
1. In the case study above, Anthony Delport mentions many different characteristics
that entrepreneurs need. Make a list of the characteristics of successful
entrepreneurs.
2. Explain what is meant by each of the following statements in the case study:
a) Learn from your mistakes.
b) Experience failure before you reach success.
c) Find the money to get the business going and keep the business going.
d) Keep doing research.
e) Concentrate on cash, not profits.
3. Find pictures of any items sold in this store by looking through your local
newspaper.
1
Activity 3 Read Case studies 2 and 3 to answer the questions below.
1. An important characteristic of production is specializing. In what does Asanda
specialize and why?
2. Asanda cuts costs by not throwing away the old bread that she did not sell. What
does she do?
3. Explain what the word “surplus” means and how Asanda uses it to make a profit.
4. Explain what the entrepreneurial action of “making a profit” is and why it is
essential in starting a business.
5. Explain how an entrepreneur like Olwethu would use the factors of production to
make a profit by buying and selling.
6. What does Olwethu do, to ensure that she makes a profit?
CASE STUDY 2
Asanda is an entrepreneur who lives in Etwatwa. She makes a living by baking bread and
vetkoek for her neighbours and the local spaza shops. She started out when her previous
employer lent her money to buy a stove with an oven. To pay back the loan faster, Asanda
decided to bake some extra bread and sell it to her neighbours. These days, it is her full-time
occupation, and she starts as early at 5am so that the first batch is ready for breakfast time.
Asanda works out what to charge for the bread based on what it costs her to produce a loaf.
This is known as the unit cost. Asanda only bakes bread and vetkoek as they always sell
well and she does not have to worry about large quantities being left over at the end of the
day, which will mean losing money. If she does have bread left over, she makes crumbs and
sells it in bags to the spaza shops. Customers who are making meatballs or crumbed fish or
meat buy the breadcrumbs. 10 GM 2018 Lesson 4: Starting a business Starting a business
requires careful thought and planning. A business cannot survive if it does not make a profit.
It will not be able to pay for goods and services that it needs to function. It will also not be
able to pay any wages and salaries. For a business to make a profit, it must fulfil the needs
and wants of customers. Business people must set goals with timelines and aim to achieve
these with a careful plan of action. If this is not done, the business will fail.
CASE STUDY 3
Olwethu is a street vendor who trades in various goods near Benoni Railway Station. She
buys and sells whatever she can find, at a good price. Early in the morning, her goods
include cold drinks and packets of chips for workers to take to the workplace. Towards
evenings, she puts out vegetables, fruit, bread and milk as people head home to their
families. Olwethu visits the markets in the early morning and the wholesalers on the
weekends to buy her goods at a good price and in bulk. She then repackages the items with
the help of her children and adds her profit before selling the goods. To make enough money
to live, Olwethu only keeps the profit. The rest of what she makes is used to buy more goods
every day. She does her research and knows what the various items sell for, all over town.
She keeps a record in her little book. She always makes sure that she offers better prices
than her competitors and has many regular customers because of her friendly and efficient
service. Together with a few other retailers, she hires a local man and his bakkie to transport
her goods to town.

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ECONOMIC AND MANAGEMENT SCIENCE

Entrepreneurs: Characteristics and skills

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