business

2. DESCRIPTION OF BUSINESS
The entrepreneur will commence a sole proprietorship business venture “Mike’s
tasty retreat”. The intended business will be engaged in the production of ice-cream.
The main objectives of the intended business would be to create a tasty treat
for everyone, help the members of the community and earn a high profit for
himself.
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3. ROLE OF THE ENTREPRENEUR
The entrepreneur is the one who organizes, manages and assumes the risks of
establishing a business or enterprise.
Three (3) functions of the entrepreneur:
 Planning-the entrepreneur will decide exactly what type of business to set
up, where to set it up and what kind of equipment and labour he/she will use.
 Organizing-the entrepreneur starts operation of the business and see how
they should produce and what they produce.
 Operating the business-the entrepreneur is planning on how to keep the
business functional and on how to expand his/her business.
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4. USE OF TECHNOLOGY
Two (2) technologies to be implemented in business production are Ice-cream
machine (Maker) and computer(s).
Ice-cream machine (Maker)
-these machines will produce the Ice-cream faster and at a cost effective rate;
rather than doing it manually which will prove to be more costly.
Computer
-these will help to keep track of business transaction, provide accurate calculation
and forecasting and produce a fast receipt for customers in ensuring efficiency.
This will allow the retention of customers.
3.

5. POTENTIAL FOR GROWTH
The entrepreneur foresees potential growth in the future both Internally and
Externally.
 Internal
-the business will be taking on a few more skilled labours to accommodate
the modernized business environment (machinery and computers) which
will improve efficiency.
4.

7. JUSTIFICATION OF LOCATION
The proposed business will be located at 50 Helena, Mahaica South which is
approximately 25 miles, east of the capital city Georgetown.
The location of the proposed business is chosen for numerous reasons which
includes, there is limited competition within the specified region due to the fact
that there is no other Ice-cream producing businesses in the region, land space is
immediately available due to the fact it is owned by the entrepreneur and
immediate access to the raw materials.
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8. SOURCES OF FIXED AND WORKING CAPITAL
Sources of Fixed capital
Fixed capital is that portion of the total capital outlay that is invested in fixed assets
(such as land, buildings, vehicles, plant and equipment), that stay in the business
almost permanently.
Fixed capital will be obtained from personal savings and money donated from
family members.
Examples of fixed capital are: building, machinery, etc.
Sources of Working capital
Working capital is the money needed to fund the normal, day to day operations of
your business.
Working capital will be obtained from personal savings of the entrepreneur.
Examples of working capital are: cash in hand, bank balances, etc.
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9. SELECTION OF APPPROPRIATE LABOUR
The proposed business will be using a combination of both skilled and unskilled
labour force for the effective functioning of the business.
Skilled
-is necessary for the efficient functioning of the technical aspects of the business
and a requirement 3 skilled workers will be needed which includes the
entrepreneur himself and their functions will be to operate the machineries and
handle transaction for the business and also maintenances of purposes.
Unskilled
-is necessary for sanitary purposes in the business and a requirement of 2 unskilled
workers will be needed and their functions are to maintain a clean and customers
friendly environment.
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10. TYPE OF PRODUCTION
The proposed business will be doing a secondary type of production, because the
business will be engaged in the production of Ice-cream for the purpose of resale.
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11. LEVEL OF PRODUCTION
The intended business will be operating at a domestic level of production, which
includes producing goods locally; the Ice-cream will be sold within the country.
9.

12. QUALITY CONTROL MEASURES
The proposed business “Mike’s tasty retreat” has many measures that are put in
place that the quality of the product being provided meets the demand of the
customers. Some of these measures are:
 The materials are from reputable suppliers.
 Proper storage facilities for the product such as cold storage.
 Equipment and utensils are properly clean and sterilized.
10.

13. LINKAGES
Backward linkage
-is the obtaining of raw materials from suppliers for the business operation.
Forward linkage
-is the selling of the finished product to other businesses for resale to consumers.
The business will be benefiting from both backward and forward linkages in that it
will be buying raw materials from suppliers and supplying the finished product to
other businesses for resale, thus earning revenue making the business viable. This
will allow for the supplier to reach deadlines and maintain customers.
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15. POTENTIAL FOR GROWTH
 External
-the entrepreneur has ownership of land at which he plans to establish other
branches of the said business. This will end in economies of scale for the
business.
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16. GOVERNMENT REGULATIONS
The government regulations that will be needed for the business is the T.I.N (Tax
payer Identification Number)which will show that the business is legal and
registered under the tax code of the country and the business permit (license)
which will show the business is permitted by law to carry out it’s daily operations.
The license will be renewed every year.
13.

17. ETHICAL ISSUES
The ethical issues that the intended business will adhere to for the prosperity of it
are:
 Maintaining a pollution free environment, thus disposing of waste properly.
 Keeping customer’s loyalty, always giving what customers ordered and
providing quality.
 Refund customers if not satisfied or if any misunderstanding.
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