Student 24/7 June 2014 | Page 19

STUDENT 911 profit. Many young people more especially students, think of starting their own businesses to earn an income while studying. Some of them want to do it because they do not want to work for someone else, while others need to do it because they have to earn some money to pay for their fees or provide for their families. m Sa M ng pe o oth Unemployment is a big problem for many South Africans. There seem to be too many individuals for too few jobs that are available. One of the best solutions to reducing unemployment is selfemployment. Self-employment is noble way to earn money where there are not enough jobs available. Thousands of people have become entrepreneurs by creating small businesses that are incredibly successful. What is an entrepreneur? An entrepreneur is a person who recognizes a business opportunity and takes initiatives, and risks to create a business venture of his or her own with an aim of making What is a business? A business, also known as an enterprise is an organisation involving the production of goods, the delivery of service, or both, in order to satisfy consumers’ needs. Small Businesses With very little allowances, every business starts off as a small business. Some of them stay small; others grow as time goes by. Small businesses are normally privately owned partnerships or sole proprietorship. you need evaluate whether you have the ability to handle personnel, merchandising, physical facilities, sales, accounting, advertising, finance, risk, and daily operations. If you do not have every one of these skills, you can always hire people who possess them. 2. Beware that insufficient capital is the major cause of small business failure. The smaller the capital you invest your business, as the owner, the higher the risk of your business failing. It is recommended that owners provide at least twothird of the required capital. 3. You must have a competitive edge! Special features must differentiate your business from bigger, older and experienced business. Some of this features are: good store layout, better advertising, higher quality at the same price, better service and more attractive packaging. The truth is that managing a small business demands the same process as managing a big business with less available resources. This can be a bit tough, but there are three ways to balance out the disadvantages of being small. 1. As an entrepreneur, Student 24/7 - 19