ENTREPRENEURSHIP
What Is This Module About?
What do you want to be in the future? Do you want to start
your own business?
If you do, then how should you go about it?
This module will tell you all about that and more. It will tell you
what you
should consider when planning the business you want to put
up. It will also tell you what you need to start that business as
well as everything you need to know when starting your own
business.
What Will You Learn From This Module?
After studying this module, you should be able to:
Describe the 4Ms (Manpower, Method, Machine, Materials) of operations in
relation to the business opportunity.
Decide what kind of business you are going to put up based on its
strengths, weaknesses, opportunities and threats;
Let’s See What You Already Know
Before you start studying this module, take this simple test
first to find out how
much you already know about the topics to be discussed.
Define the following terms.
1. Feasibility study
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2. Marketing plan
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3. Production plan
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4. Financial plan
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Let’s Learn
The 4Ms (Manpower, Method, Machine, and Materials) are key factors
that influence the operations of a business and are critical in evaluating and managing
the efficiency and success of business opportunities. Here’s how each of them can
relate to a business opportunity:
Manpower:
This refers to the human resources or labor force needed to implement the
business opportunity. It includes employees, managers, and skilled workers.
The right people must be in place with the required knowledge, skills, and
experience to carry out tasks effectively
Method:
Method refers to the processes, procedures, or strategies used to produce
goods or services. In relation to a business opportunity, the method includes
how operations will be carried out to achieve goals efficiently and effectively.
Machine:
Machine refers to the equipment, technology, and tools needed to produce the
product or service. In the context of a business opportunity, this includes
evaluating whether the company has access to the necessary machines,
technology, and infrastructure to support the production process.
Materials:
Materials are the raw materials, components, or supplies required to produce
the product or deliver the service. In terms of the business opportunity, it’s
crucial to assess whether the right materials are available in the right quantity
and quality, and at the right price.
The factors that one should consider when putting up a
business include the
following:
1.Availability of Raw Materials: You need to make sure the materials you need to
create your product or service are easily accessible. If they’re hard to get or
expensive, it could affect production and costs.
2.Power and Fuel: Ensure a reliable and affordable power supply for running your
operations. If your business requires a lot of energy or fuel, you need to consider how
to manage these resources to avoid disruptions.
3.Transportation: Think about how you will transport materials to your business and
products to customers. Good transportation options help keep costs down and ensure
timely deliveries.
4.Labor: You need to have access to a skilled workforce. Consider the availability of
workers in your area and whether they have the right skills to support your business.
5.Marketing: Effective marketing strategies are important for attracting customers
and making your business known. Think about how you’ll promote your products or
services and reach your target market.
6.Location: The location of your business can impact everything from costs (rent,
utilities) to accessibility for customers and suppliers. A good location makes it easier
to operate and attract customers.
These factors are all interconnected and contribute to how smoothly your business
will run. It’s important to plan for each to create a stable foundation for your business.
Wait!
The first things you should consider in putting up a business are the strengths,
weaknesses, opportunities and threats that you might face in the actual process.
You should think of all these in terms of what business you are planning to start.
Say, for example, that you want to put up a handicraft factory. You have to think of
what exact types of products you want your factory to make. Then you should
consider whether your proposed business can become successful or not.
Let us first define what the terms strengths, weaknesses, opportunities and threats
in relation to putting up a business.
A business’s strengths refer to its strong attributes or inherent assets. These are the
things that can make the business you are going to put up succeed. They can be
determined mostly by the wants and needs of a number of people. They are, in effect,
greatly affected by what the market demands at a certain point in time.
A business’s weaknesses, on the other hand, refer to its weak attributes or
inherent liabilities. These are the things that can hinder your business from
succeeding in the near future. They may have something to do with the factors that
can affect a business such as the location of a store or mismanagement.
Opportunities refer to good chances for advancement or progress. These may
include, inheriting a piece of land on a prime location for the business you want to put
up, for example. Threats, on the other hand, refer to factors that may adversely affect
your proposed business, such as intense competition from other already established
companies.
Let’s Review
Match the terms in Column A with those in Column B by writing the
letters of
the correct answers in the blanks.
COLUMN A
1. Manpower situated, affecting costs and
2. Method accessibility.
3. Machine D. The supply of workers with the
4. Materials necessary skills to perform tasks.
5. Location E. The equipment, technology, and tools
6. Power and Fuel needed for production.
7. Labor F. The raw materials, components, or
8. Marketing supplies required for creating products
9. Transportation or services.
10. Availability of Raw Materials G. The movement of materials or goods
between locations, impacting efficiency
COLUMN B. and costs.
A. The processes, procedures, or H. The resources required to operate
strategies used to produce goods or machinery and other business functions.
services efficiently. I. The actions taken to promote products
B. The human resources or labor force or services and attract customers.
needed to carry out business activities. J. Ensuring materials are available in the
C. The place where a business is right quantity and quality to avoid
production delays
.
Let’s See What You Have Learned
ACTIVITY 1.1
REFLECTION
1. Explain the importance of conducting a SWOT analysis when starting a business.
How can identifying strengths, weaknesses, opportunities, and threats help an
entrepreneur in decision-making and strategy formulation?
2. Why is it important for a new business to understand its strengths and weaknesses
before launching?
3. In your opinion, how does a SWOT analysis help in mitigating risks and
maximizing potential in a new business venture?
Let’s Remember
♦ When starting a business, knowing the strengths, weaknesses, opportunities and
threats that come with it can certainly help you determine whether it will succeed or
fail.
