ZIMSEC O Level Commerce Notes: 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

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