Forms of Business Ownership PDF

Forms of Business ownership © Kalasalingam Academy of Research and Education Learning Objectives At the end of this session, you will be able to: Forms of Business ownership Issues of Business ownership Environmental analysis Business plan Women en...

Forms of Business ownership © Kalasalingam Academy of Research and Education Learning Objectives At the end of this session, you will be able to: Forms of Business ownership Issues of Business ownership Environmental analysis Business plan Women entrepreneurship Family business Forms of business ownership Sole proprietorship or sole trade Joint Hindu family business/firm Partnership firm Limited liability partnership Joint stock company One person company Co operative society/ enterprises  Issues in the forms of Business ownership Cost of start-up Control Vs responsibility Profits to share or not to share Taxation Entrepreneurial ability Risk tolerance Financing Continuity and transferability Environmental analysis An environmental analysis is a strategic technique used to identify all internal and external factors that could affect a company’s success. Internal components reveal the strengths and shortcomings of a company, while external components represent the opportunities and risks. This exist outside of the company. Importance: Find opportunities Identify threats Create effective strategies Anticipate change Make informed decisions Business Idea A business idea is a concept or proposal for a potential business venture that addresses a specific market need, solves a problem, or fulfills a demand in the marketplace. It encompasses the fundamental concept or vision behind a business, outlining the product or service it aims to offer, the target market it intends to serve, and the value it seeks to deliver to customers. Business plan A business plan is a summary document that outlines how and why a new business is being created. New entrepreneurial ventures must prepare formal written documents to outline their long-term objectives and the means to be employed to reach said objectives. The business plan underlines the strategies that need to be adopted in order to reach organizational goals, identify potential problems, and devise custom solutions for them. Structure of Business Plan Cover page and table of contents Executive summary Mission statement Business description Business environment analysis SWOT analysis Industry Background Competitor analysis Market analysis Marketing plan Operations plan Management summary Financial plan Achievements and milestones Business Process A business process is an activity or set of activities that accomplish a specific organizational goal. Business processes should have purposeful goals, be as specific as possible and produce consistent outcomes. Business process management (BPM) is a systematic approach to improving those processes, which helps organizations achieve their business goals. If an organization is unable to perform certain business processes internally due to cost or resource constraints, the company might use business process outsourcing. Many organizations contract specific business tasks -- such as payroll, human resources (HR) or accounting -- to a third- party service provider. Importance They help organizations identify and understand the actual work required to keep the lights on and to achieve organizational objectives. They break that work into organized, repeatable steps that workers can follow to achieve consistent outcomes. Using repeatable steps to produce consistent outcomes helps organizations to more accurately predict the resources they need, thereby lowering the risk of over or under provisioning valuable resources. The consistent, repeatable nature of defined business outcomes helps lower the risk of employees introducing workarounds or individualized steps that can cause disruptions, slow work and increase error rates. Being able to better measure the efficiency and effectiveness of the individual steps within the process enables teams to identify and mitigate inefficiencies and bottlenecks to improve performance; this is the foundation of continuous improvement. Teams are better able to identify where technologies -- such as robotic process automation (RPA) -- can be used to further boost effectiveness or efficiencies. Business Process categories Operational processes. Also called primary processes, these processes deal with the core business and value chain and deliver value to the customer by helping to produce a product or service. Operational processes represent essential business activities that accomplish business objectives such as generating revenue. Examples of this include the following: taking customer orders processing product payments managing bank accounts Business Process categories Supporting processes. Also known as secondary processes, these involve back-office processes within the business functions that keep the organization running. One key difference between operational and supporting processes is that supporting processes do not directly provide value to customers. Examples of supporting processes include the following: accounting HR management workplace safety Business Process categories Management processes. These processes measure, monitor and control the activities related to business procedures and systems. Like supporting processes, management processes do not provide value directly to the customers. Some examples of management processes include the following: internal communications governance strategic planning budgeting infrastructure or capacity management Women entrepreneurship Women entrepreneurship is the process in which women initiate a business, gather all resources, undertake risks, face challenges, provides employment to others and manages the business independently. Categories Affluent entrepreneurs Pull factors Push factors Rural entrepreneurs Self-employed entrepreneurs Reasons for Growth of women entrepreneurship Growth in literacy level Industrial and economic growth Awareness of democratic values Organizations promoting women entrepreneurship Financial assistance and consultancy services provided by financial institutions  Issues in women entrepreneurship Corruption in government agencies Price and availability of raw materials High competitions in low technology products Financial problems Face technological obsolesce due to lack of support Mobility problems Family responsibility Exploitation by middle man Summary In this session, you have learned about: Forms of Business ownership Issues in business ownership Environmental analysis Business idea Business plan Women entrepreneurship