Entrepreneurship & How to Establish Your Own Business 6e

The vital importance and positive contribution of entrepreneurs, entrepreneurial businesses and an entrepreneurial culture in the economic and social development of countries cannot be overstated. Entrepreneurs create and bring to life new technologies, products and services. Entrepreneurs create new markets and provide more jobs. Entrepreneurs take calculated risks, they are innovative and creative and put these qualities into feasible and viable businesses. South Africa, like any emerging economy that aims to move forward, needs successful entrepreneurs to play an even bigger strategic role in contributing to economic growth.

The transformation of ideas into economic opportunities is the crux of entrepreneurship. History shows that pragmatic people who are entrepreneurial, creative and innovative, able to exploit opportunities and willing to take risks, have significantly advanced economic progress. For example, the USA gets more than half of its economic growth from industries that barely existed a decade ago. This is directly attributable to innovative entrepreneurs and their start-up businesses.

Entrepreneurs can produce new solutions to old problems, and they always challenge the status quo. Entrepreneurs are risk-takers who pursue opportunities that others may fail to recognise or may even view as problems or threats.

Entrepreneurs are closely associated with change, creativity, knowledge, innovation and flexibility, which are all factors that are increasingly important

sources of competitiveness in an increasingly globalised world economy. Therefore, fostering entrepreneurship means promoting the competitiveness

of businesses. At a macro-level private sector development and entrepreneurship development are essential ingredients for achieving the United Nations Millennium Development Goal of reducing poverty. While sound macroeconomic policies and providing market access are crucial, emerging markets need to nurture and develop entrepreneurs able to take advantage of opportunities created by globalisation.

At a national level, entrepreneurs can play a vital role in the economic development of the country and the social upliftment of its people. As the rest of the private sector, entrepreneurial development is a powerful engine of economic growth and wealth creation, and crucial for improving the quality, number and variety of employment opportunities for the poor. Economically, entrepreneurship invigorates markets. The formation of new business leads to job creation and has a multiplying effect on the economy. Socially, entrepreneurship empowers citizens, generates innovation and changesmindsets. These changes have the potential to integrate developing countries successfully into the global economy.

The aim of this book is to introduce the reader to entrepreneurship and to guide him or her through the establishment of an own business, from the identification and development of the business idea, through the feasibility and viability studies, the crafting of a well-structured business plan, the financing Entrepreneurship and implementation of the business plan, to the start and management of the business. In terms of setting up a business, the various business forms (ie sole proprietorship, partnership, private company, close corporation) and business function (ie marketing, public relations, information and record keeping, finance, human resources, purchasing, operations, and general management) are also addressed. The authors welcome you to Entrepreneurship and how to establish your own business.