Introduction to Enterprises And Entrepreneurs

• You will remember that there are four factors of production namely:
  • Land
  • Labour
  • Capital
  • Enterprise/Entrepreneurship
• While the first three are often made up of tangible resources such as a piece of land, the company’s labour force or a tractor for example
• The fourth resource (another name for a factor of production) is special
• It involves a person or group of persons taking the risk to combine the other three factors
• This person or group of persons will be taking a risk to start an enterprise (business)
• As noted above enterprise is another name for a business
• An entrepreneur therefore is someone who is willing to take the risk to start a new business or project
• The word enterprise is also used to refer to the skill of combining the other factors of production
• An entrepreneur is an opportunist, they see the resources that are available and see an opportunity to combine these resources to make goods and services (products)
• Entrepreneurs create new businesses
• Examples of well-known entrepreneurs in Zimbabwe include:
• Strive Masiiyiwa the founder of the Ecocash group, Philiph Chiyangwa, Shingi Munyeza of African Sun and the late Same Levy
• In defining what an entrepreneur is we mentioned the word risk
• Whoever starts an enterprise (business) is taking a risk that the their enterprise may fail and make losses
• In return if their business succeeds the entrepreneur makes profit
• The word risk here refers to the fact that there is a probability (chance) that this business may fail
• It is also important to note that enterprises are known by other names
• These include:
  • Business
  • Organisation
  • Entity
  • Proprietorship
  • Firm
  • Concern or going concern
  • Venture
  • Undertaking

To access more topics go to the Commerce Notes page