Entrepreneurship Education Grade 12 | Term 1–3 LEARNER’S book Authors: Ria de Villiers Juliet Williamson Robert Eric Nelson Jens Dyring Christensen International Labour Office, Geneva International Training Centre of the ILO, Turin Copyright © International Labour Organization 2015 First published 2015 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected] The International Labour Office welcomes such applications. Libraries, institutions and other users registered with reproduction rights’ organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights’ organization in your country. 978-92-2-129415-3 (print) 978-92-2-129416-0 (web pdf) ILO Cataloguing in Publication Data The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications and electronic products can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: [email protected] Visit our web site: www.ilo.org/publns Cover Photo: Stephen Collet Design: Elizabeth Fincham Printed in South Africa Foreword Dear Grade 12 Learner, Welcome to the startUP&go programme! The startUP&go will take you on a journey over the next year through the world of entrepreneurship. During this journey we hope to build your entrepreneurial skills and competencies and make you better prepared to become an entrepreneur in the future, should you wish to be one! If you are reading this, then you are part of a special group of Business Studies learners in a Free State school, who have been selected to test the startUP&go programme during Grade 10,11 and 12. During the next year you will learn about characteristics of enterprising people and you will learn that entrepreneurship is an attitude towards life that you can use in many ways to identify opportunities in your personal life, in your family and in your community. You will practise entrepreneurship through games and creative exercises with your teachers and fellow students in class and we hope you will have fun! Practising and learning about entrepreneurship must be inspiring! This is what the startUP&go package is about. The book you hold in your hand will assist you in nurturing your entrepreneurial talent. If you think you can, you can! startUP&go | LEARNER’S book Table of contents TERM 1 General objectives/link to the CAPS Entrepreneurship focus 12 12 1 Session (Week 1–3) I mpact of recent legislation on business – response to demands for redress and equity 13 Viewing 1.1 Legislation 13 Activity 1.1 Applying legislation to real-life scenarios Case study 1–7 (Informal Assessment Portfolio) 14 Activity 1.2 Reflecting on legislation as an entrepreneur (Informal Assessment Portfolio) 15 Activity 1.3 Analysing the importance of legislation (Informal Assessment Portfolio) 15 Activity 1.4 Understanding and explaining legislation (Informal Assessment Portfolio) 15 Activity 1.5 Applying learning to business (Informal Assessment Portfolio) 16 Activity 1.6 Mini debate: Problems facing SMMEs (Informal Assessment Portfolio) 16 Reading 1.6 New Minister of Small Business Development, Ms Lindiwe Zulu 17 Journal Entry Session 17 2 (Week 4–5) Human resources function 18 Activity 2.1 View the video: HR functions (Informal Assessment Portfolio) 18 Viewing 2.1 HR functions 18 Activity 2.2 (Part 1) Reflecting on the video of HR Functions (Informal Assessment Portfolio) 19 Activity 2.2 (Part 2) Sipho gets a job (Informal Assessment Portfolio) 19 Reading 2.2 (1) Sipho needs a job … 19 Reading 2.2 (2) He applies and they phoned him back! 20 Reading 2.2 (3) He’s been invited for an interview! 20 Activity 2.3 Analysing Absa’s HR functions (Informal Assessment Portfolio) 21 Activity 2.4 Explain induction and recruitment (Informal Assessment Portfolio) 21 Viewing 2.5 Meet Mamoabi, HR specialist 21 Activity 2.5 View the video: Meet Mamoabi, HR specialist (Informal Assessment Portfolio) 21 Activity 2.6 Apply HR to business (Informal Assessment Portfolio) 23 23 Journal Entry Session 3 (Week 8–10) Devise strategies for business to use in its response to the challenges of the macro business environment 24 The Business Strategy Game 24 Activity 3.1 Play the Business Strategy Game (Informal Assessment Portfolio) 27 Activity 3.2 Reflect on the Business Strategy Game (Informal Assessment Portfolio) 27 Activity 3.3 Analyse the Business Strategy Game (Informal Assessment Portfolio) 28 Activity 3.4 Discuss business strategies (Informal Assessment Portfolio) 29 Activity 3.5 Apply business strategies to the real world (Informal Assessment Portfolio) 29 Activity 3.6 Case study: Strategies (Informal Assessment Portfolio) 29 Reading 3.6 Strategies 30 Activity 3.7 Meet Thato Kgatlhanye (Informal Assessment Portfolio) 30 Reading 3.7 Solving problems in Africa – The lack of opportunity 31 Game startUP&go | LEARNER’S book Table of contents TERM 2 General objectives/link to the CAPS Entrepreneurship focus 33 33 1 (Week 1–2) C oncept of corporate social responsibility 34 Nedbank CSR and CSI 34 Session Viewing 1.1 Activity 1.1Nedbank: Corporate Social Responsibility (CSR) and Corporate social Investment (CSI) (Informal Assessment Portfolio) 35 Activity 1.2 Reflect on CSR and CSI video (Informal Assessment Portfolio) 35 Activity 1.3 Analyse CSI projects (Informal Assessment Portfolio) 36 Activity 1.4 Understand CSR and CSI and social responsibility (Informal Assessment Portfolio) 36 Activity 1.5 Apply CSR to real world (Informal Assessment Portfolio) 37 Reading 1.5 Social or Business entrepreneur? 37 Journal Entry Session 37 2 Activity 2.1 Game (Week 5) Management and leadership 38 The leadership game (Informal Assessment Portfolio) 38 The Leadership Game 38 Reading 2.1 Team Instruction Sheet 40 Reading 2.2 Leadership Styles 42 Reflect on the leadership game (Informal Assessment Portfolio) 43 Activity 2.2 Activity 2.3 Analyse the leadership game (Informal Assessment Portfolio) 44 Activity 2.4 Differentiate between leaders and managers (Informal Assessment Portfolio) 44 Activity 2.5 Applying leadership to business (Informal Assessment Portfolio) 45 45 Journal Entry Session 3 (Week 6) Q uality of performance with business functions 46 Activity 3.1 Quality control and the eight business functions (Informal Assessment Portfolio) 46 Viewing 3.1 Sedibeng Water, Quality Control 46 Activity 3.2 Reflect on Quality Control video (Informal Assessment Portfolio) 47 Activity 3.3 Analyse the eight business functions and quality control (Informal Assessment Portfolio) 47 Activity 3.4 Implementing quality control and continuous improvement cycle (Informal Assessment Portfolio) 48 Activity 3.5 Apply quality control to business (Informal Assessment Portfolio) 48 (Week 7–8) Revision 49 Revision: Business Strategies Corporate Social Responsibility and Corporate Social Investment Leadership (Informal Assessment Portfolio) 49 Session 4 Activity 4.1 startUP&go | LEARNER’S book Table of contents TERM 3 General objectives/link to the CAPS Entrepreneurship focus 51 51 1 (Week 3) Forms of ownership and their impact on business operations 52 Forms of ownership 52 Activity 1.1 Business scenarios 1-6 (Informal Assessment Portfolio) 52 Activity 1.2 Reflect on forms of ownership (Informal Assessment Portfolio) 53 Activity 1.3 Analyse the forms of ownership (Informal Assessment Portfolio) 54 Activity 1.4 Understand forms of ownership (Informal Assessment Portfolio) 54 Activity 1.5 Apply forms of ownership to business (Informal Assessment Portfolio) 54 (Week 4–5) Presentation of information and data response 55 Meet Tumi, presenter 55 Activity 2.1 View video: Meet Tumi, presenter (Informal Assessment Portfolio) 55 Activity 2.2 The use of audio-visual aids in presentations (Informal Assessment Portfolio) 56 Activity 2.3 Help Lebo present her business plan (Informal Assessment Portfolio) 57 Activity 2.4 Differentiate between types of presentation documents (Informal Assessment Portfolio) 57 Activity 2.5 Applying presentation skills to business (Informal Assessment Portfolio) 57 Session Viewing 1.1 Session Viewing 2.1 2 Session 3 (Week 6–7) Revision 58 The Envelope Factory Game 58 Activity 3.1 Play the envelope factory game (Informal Assessment Portfolio) 58 Activity 3.2 Reflect on the envelope factory game (Informal Assessment Portfolio) 61 Activity 3.3 Analyse the envelope factory game (Informal Assessment Portfolio) 61 Activity 3.4 Understand economic sectors (Informal Assessment Portfolio) 62 Activity 3.5 Apply the envelope factory game to business (Informal Assessment Portfolio) 62 Viewing 3.6 Quiz 62 Revision: Whole year’s work Quiz Term 1 Quiz Term 2 Quiz Term 3 (Informal Assessment Portfolio) 62 Game Activity 3.6 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 General objectives/link to the CAPS The objectives for the startUP&go material for term 1 are to: •Consider the macro environment with a particular focus on the recent legislation, which was developed in response to demands for redress and equity, on small and large business operations •Understand and know how to apply the relevant legislation and the following aspects of the Human Resources function: recruitment and selection; employee contracts; induction and placement; salary administration; employee benefits; skills development •Devise and formulate strategies a business could use in response to the challenges of the macro business environment; critically evaluate such strategies and make recommendations as required. Entrepreneurship focus Session 1–3: Week 1–10 TERM 1 For Term 1 in Grade 12, the main focus of the startUP&go package is on key entrepreneurial activities relating to the operations of a business. Entrepreneurs are often faced with basic business problems regarding legal concerns as well as human resource issues. It’s not always clear how to solve these pressing problems with the limited resources available to most entrepreneurs. 12 Entrepreneurship education isn’t just about learning the basics of law and human relations. It’s about encouraging ethical behaviour and creativity in resolving problems related to law and human relations; this is the hallmark of entrepreneurial thinking. When you begin finding new ways to solve problems, some solutions may fail. But this isn’t failure in the traditional sense. It’s simply trial and error. It teaches new entrepreneurs to be resilient and persevere, and in doing so, won’t block the creative process just because some potential solutions don’t work. Entrepreneurs bring new products and services to the world that never existed before. They see a need that others have missed. It is important that they not only have a vision of how their product will meet the need, but also use various business strategies to promote the new products and services, as well as how to react to problems. They need to formulate strategies which could respond to the challenges of the macro business environment and to critically evaluate such strategies and make recommendations. A defining trait of entrepreneurship is the ability to spot an opportunity and create a strategy that takes into account the most favourable macro business environment to bring that opportunity to the market place. Entrepreneurs have a curiosity that identifies overlooked business opportunities and puts them at the forefront of innovation and emerging fields. They have the ability to communicate that strategy effectively to investors, staff and other stakeholders. LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 1: Week 1–3 SESSION 1 Week 1–3 Impact of recent legislation on business – response to demands for redress and equity 3–4 hours Session focus: Through the knowledge you gained in Grades 10 and 11 you learned that there are a number of factors in the Macro environment – of which the business has no control – which affect businesses. The legal environment is one of the environments that a business has no control of and has to comply with. Since 1994, a number of Acts have been introduced in South Africa which businesses have to adhere to. These Acts were brought in to redress the inequalities of the past. The responsibility lies with management to ensure these Acts are adhered to and implemented in the businesses because non-compliance with these Acts is punishable by law. You will view a documentary video which sums up the legislation on businesses in South Africa today and, by doing various related activities, you will grow in your understanding of the legislation as response to demands for redress and inequity. STAGE 1: DOING Viewing 1.1: Legislation View the video, make notes and then complete the following questions in writing in your Informal Assessment Portfolio. 13 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 1: Week 1–3 ACTIVITY 1.1 Applying legislation to real-life scenarios Case study 1–7 Case study 1: a) Which Act is applicable in the above scenario? b)How would Vincent go about claiming damages from the business for the incident that took place? Case study 2: c) Which Act is applicable in the above scenario? d)What are the consequences of non-compliance to this Act for businesses? Case study 3: e) Which Act is applicable in the above scenario? f)Mention two errors this micro lender has made. Case study 4: g) Which Act is applicable in the above scenario? h)Name two rights for employees in this Act. Case study 5: i)Which Act stipulates that the business would receive a better rating if Jabulani gets the job? j)Name the seven elements included in a scorecard associated with this Act. Case study 6: k) Which act is applicable in the above scenario? l)What is an advantage of this Act? 14 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 1: Week 1–3 Case study 7: m)Which two Acts are most applicable in the above scenario? n)When is it illegal to strike? o)How much should they be paid for overtime or work on Sundays/Public holidays? STAGE 2: SHARING – HOW DID IT GO? ACTIVITY 1.2 Reflecting on legislation as an entrepreneur You have almost finished with school and may soon start working, or starting a small business. a) How do you feel about the Acts as an entrepreneur, or as a worker? b) How did the video make things clearer? STAGE 3: ANALYSING/PROCESSING ACTIVITY 1.3 Analysing the importance of legislation a)Describe whether you feel the Acts have been successful in their implementation and whether they have achieved their initial purpose. b) Name one advantage and one disadvantage of the new Acts for start-up businesses STAGE 4: LINKING THE THEORY TO THE CAPS ACTIVITY 1.4 Understanding and explaining legislation a) The Labour Relations Act, 1995 (Act 66 of 1995) provides for the establishment of trade unions and employer organisations. Distinguish between these two types of organisations. 15 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 1: Week 1–3 b) Evaluate the impact of the Basic Conditions of Employment Act, 1997 (Act 75 of 1997) on business operations. c) The Labour Relations Act (LRA), Act no. 66 of 1995, prescribes procedures for the different types of labour actions. Name and discuss any THREE types of labour procedures that workers can participate in. d) According to the Employment Equity Act no. 55 of 1998, it is expected of all employers to take steps in ending all unreasonable discrimination and to prevent it. Discuss any steps that an employer could incorporate to prevent unreasonable discrimination. e) Name and explain any two elements of a BBBEE scorecard. STAGE 5: APPLYING LEARNING TO THE REAL WORLD ACTIVITY 1.5 Applying learning to business a) Why do you think it is necessary for businesses to adhere to all these Acts? b) Do you think BBBEE is “reverse Apartheid?” Explain why/why not. ACTIVITY 1.6 Apply HR to business Ms Lindiwe Zulu was recently appointed as the Minister of Small Business Development. Do you think this is the answer to the problems facing SMMEs (Small and Medium Enterprises)? The class will be divided into two halves: Team A: This is definitely the answer to the problems, particularly of too much admin, facing small businesses Team B: It’s just another government department – nothing’s going to change. a)Individually read the excerpt from a newspaper article (Reading 1.6) quoting the new minister and make notes to support your argument. b) 16 Regroup yourselves into teams (A and B). You now have 20 minutes to prepare for the debate by - selecting your 2 best speakers to present your team’s point of view - organising all the information you wrote down in a) into an argument. LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 1: Week 1–3 c) Your teacher will organise the mini-debate as follows: - Speaker 1 (Team A) - Speaker 1 (Team B) - Speaker 2 (Team A) - Speaker 2 (Team B) - A vote by a show of hands to see which side was the more convincing. Reading 1.6: New Minister of Small Business Development, Ms Lindiwe Zulu “We will focus on providing effective support for small businesses to ease the regulatory and compliance burden on small businesses. “That does not mean that people must no longer comply. “We need people to understand that compliance is important for stability. “But we are saying we must not make it difficult for small businesses to comply. “We must make it easy for them and understand the circumstances under which they operate. Sunday Independent, 22 June 2014 (Photo: Mogomotsi Magome) “We must understand the constraints they deal with on a daily basis. The ultimate goal is to reduce the difficulty in doing business, and this includes improving access to finance and the markets,” she said. Having crisscrossed the world travelling with Zuma as his international relations adviser, Zulu this week warned about the change of mindset necessary if small businesses in the country were to grow and compete on the continent and across the world. Learner’s Journal: A blogger wrote this after reading the above article: “Red tape and over-regulating, even though well-intentioned, add stupid admin burdens to small businesses! However, the access to finance must be on merit and not colour otherwise it will fall short.” In your journal react to the blogger stating whether red tape and affirmative action with respect to finance will hamper your entrepreneurial dream. 17 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 2: Week 4–5 SESSION 2 Week 4–5 Human resources function 2–3 hours Session focus: The most important resource in a business is their human resources – the employees. In South Africa there is a shortage of skilled workers, and the human resource function, if correctly managed, can assist in this problem. In Grades 10 and 11 you gained valuable information regarding various aspects of the human resource function and the legalities involved. In Grade 12, this information will be refreshed, as well as learning about key activities that the human resource function of a business must perform, such as recruitment, selection, induction, placement, skills development, salary administration and employee benefits. You will view a video in which you take a journey with a young person who experiences all these functions so that you can truly understand the value of each step in a “real-life situation”. STAGE 1: DOING ACTIVITY 2.1 View the video: HR functions View the video: HR functions View the video which shows the various roles and responsibilities of the human resource function. Take short notes and try to create a rough mind-map of these roles and responsibilities. 18 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 2: Week 4–5 STAGE 2: SHARING – HOW DID IT GO? ACTIVITY 2.2 (PART 1) Reflecting on the video of HR Functions Discuss in pairs: a) Why do you think the human resource function is important to the overall success of a business? b) What do you think prospective employees can do to make themselves more appealing to business? ACTIVITY 2.2 (PART 2) Sipho gets a job Reading 2.2 (1): Sipho needs a job … Sipho Tshabalala would like to study, but he has no funds. He got a distinction for Accounting in Matric, and spent a lot of time coaching his friends before tests and exams. He even became the accounting teacher for the Matric class for two terms when the school’s accounting teacher was taken ill and they could not find a replacement. He lives, eats and breathes accounting, so he decides to look for work in the field of accounting so that he can learn and earn. Perhaps one day, he can become a teacher or maybe even a professor in Accounting! He goes into town one morning and at the taxi rank, he buys a newspaper. He goes to a coffee shop, orders a cool drink and starts paging through the Jobs Vacant section. He cannot believe his luck. The first advertisement that catches his eye is the vacancy for a training facilitator in the new basic accounting course for Qualitas Career Academy. The application form can be downloaded from a given website address. He knows he has no formal qualifications but perhaps his teaching and mentoring experiences and his high accounting marks will pull him through! a) What is the first thing Sipho has to do? b) What documents should he attach to the application? c) What should he do while waiting for a response from Qualitas Career Academy? 19 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 2: Week 4–5 Reading 2.2 (2): He applies and they phoned him back! A week later, the phone rings. Sipho answers and a professional-sounding lady introduces herself as Mary, from Qualitas Career Academy. Sipho responds politely, but he is very nervous. Mary asks him a few questions about his experience as an Accounting teacher and says, that although they were hoping for a qualified person, they are struggling to find one. Would Sipho be prepared to visit them for an interview? The course will be presented to Grade 10 level students so Sipho could manage the job if he is selected. Of course he’ll go for an interview … He puts the phone down and takes a deep breath! d) What should Sipho do now? e) How else should he prepare himself? Reading 2.2 (3): He’s been invited for an interview! The first interview is in two days’ time. He wears his smart trousers, a collar and tie and goes to the first interview, dressed to impress! He has a good conversation with Mary and a day later Mary phones him again to say he is on “the short list” – he is one of two applicants who are being considered! The final interview goes very well – by now his confidence has grown, although he feels very young. Mary, however, reassures him that his has “an old soul” – his experience teaching his fellow students and his responsible way of dealing with the school’s crisis when the accounting teacher was on sick leave, are all evidence that he will be fine. She tells him that she has phoned the principal and the other referees and that they all say the same thing: Sipho worked hard, he is responsible, give him a chance! And Qualitas Career Academy decided to do just that. They are even prepared to support his further studies in Accounting! 20 f) Sipho has got the job. What is the next discussion about? g) He arrives at work on the first day of the next month. What will happen today? LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 2: Week 4–5 STAGE 3: ANALYSING/PROCESSING ACTIVITY 2.3 Analysing Absa’s HR functions “A post for the regional manager at ABSA Bank in Bloemfontein has opened up.” a)Differentiate between internal and external sources of recruitment that ABSA could use to recruit people to fill this vacancy. b) What would the role of ABSA be as the interviewer? STAGE 4: LINKING THE THEORY TO THE CAPS ACTIVITY 2.4 Explain induction and recruitment a) ABC Limited has employed a new sales person. The human resources manager has decided to draw up an induction programme for the new employees. Indicate the benefits ABC Limited could gain from an induction programme. b) Provide three advantages and three disadvantages of the internal recruitment of prospective candidates. Viewing: 2.5 Meet Mamoabi, HR specialist View the video in which Mamoabi Matsie, HR consultant is interviewed. Try to answer these questions based on her interview and on knowledge you have already acquired in Session 1. ACTIVITY 2.5 View the video: Meet Mamoabi HR specialist a)How does big business recruit potential employees? Name the methods Mamoabi has listed. b)How are employees screened? 21 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 2: Week 4–5 c)How are applicants selected for the initial list and then the short list? d)What is an employee contract? Describe in your own words. e)Apart from personal details, list another 5 items that would appear on most employee contracts. f)What is the difference between a salary and wages? g)What typical fringe benefits offered by the corporate sector does Mamoabi mention? h)Mamoabi mentions the induction programme at her last corporate job. Describe what new employees do in week 1 of their new job after they have been placed in the advertised position. i)Should an employee wish to end her employment at a company: -Which Act would help the employee in following the right procedures? -What would the notice period be if the employee has worked for 6 months? -What would the notice period be if the employee has worked for a year or more? j)Should an employee be dissatisfied with the employer who has, in her opinion, acted unfairly: -What is her first step? -Which Act would help the employee in following the right procedures? -Where does she go if she feels that her dispute is not being solved at work? Recruit: a strategy for looking for the right person for a job Screen: a way of evaluating job applicants to create a short list Select: choose the best applicant for the vacancy advertised Salary: fixed payment usually paid once a month Wages: daily, weekly or monthly payment to employees usually calculated per hour Remuneration: any money paid to workers (salary or wages) Fringe Benefits/Perks: extra benefits employees enjoy in addition to their salary Induction: introduction of employee to people s/he will be working with. Also a site visit Placement: successful applicants are placed into the vacancy or job they applied for k)Describe/define each of the following terms to show that you understand the meaning of each: -Termination of an employee -Retrenchment -Retirement l)Why is some knowledge of HR valuable for you -as a person? -as an employee? -as an entrepreneur? 22 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 2: Week 4–5 STAGE 5: APPLYING LEARNING TO THE REAL WORLD ACTIVITY 2.6 Apply HR to business a) What have you learned about the importance of the human resource function in a business? b)How would you apply the human resource function in starting a business of your own? Make short notes that you could use in an essay if necessary. Learner’s Journal: What have you learned about yourself in this session? Would you prefer to work for somebody else? Or are you ready to start up a small business? In your journal write a 250-word essay about how ready you are to start a business. 23 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 3: Week 8–10 SESSION 3 Week 8–10 Devise strategies for business to use in its response to the challenges of the macro business environment 3–4 hours Session focus: In Grades 10 and 11 you learned about the various elements in the micro, market and macro environments, and the interrelationships of these elements as well as the challenges faced by businesses in this environment. In Grade 12, we will turn our attention to developing strategies that businesses can use to deal with the challenges in these environments. The strategy a business develops should be in line with its mission and vision, and the strategy must be measurable in order to ascertain whether the strategy was successful or not. You will play a game to explore these strategies and to decide in teams which strategies to use to deal with the business problems presented in the game. Play the Business Strategy Game Purpose: In this game learners will test their understanding of problems and relevant solutions in a business scenario by matching or aligning 3 cards for each of 12 given business scenarios: the scenario card (card 1) must be matched to the best strategy or solution (card 2) and the best opportunity card (card 3) must be aligned to the scenario. The purpose of the game is to see whether learners can not only solve business problems, but also recognise that the solution may present a business opportunity. Objectives: 1. You will be able to identify the twelve strategies that entrepreneurs use in response to a variety of business scenarios. 2. You will identify opportunities that will probably result when using a particular business strategy for a given scenario. 24 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 3: Week 8–10 Procedure 1.Divide into teams of 5 – 7. Each group chooses a team name. 2.Your teacher will appoint an Observer for each group and explain their role which will be to: a)Record the interaction amongst the team members when playing the game using the Observer Feedback form (see Activity 3.3) b)Report to the teacher the minute the team has finished so that she can note the team’s position in terms of speed. c)Score the team as your teacher gives the correct answers. d)Give feedback using the Observer’s Feedback form. 3.Your teacher will give each group the following sets (on colour cardboard printing cards). Each set is on a different colour cardboard: - A set of 12 business scenarios (name them from 1 – 12 to avoid confusion) - A set of business strategy cards comprising the 12 strategies and a short description of each - A set of short descriptions on the SWOT opportunity presented by each strategy - A sheet of flipchart paper, a koki pen and presstick. 4. Your teacher will demonstrate a sample grid she has drawn up on a sheet of flipchart paper. 5. Groups now draw the following grid (which your teacher has just demonstrated). Business Scenario Business Strategy Opportunity Score 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 25 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 3: Week 8–10 How to play the game: 1.Use the presstick to stick the scenario cards, in correct numerical order, in column 1 of the flipchart grid under the heading “scenario”. 2.Underline the key words in the scenario descriptions to help you focus. 3.Then find a business strategy card to solve the problem described in the scenario card in column 1. Stick it in column 2 next to the relevant scenario. 4.Finally, find a relevant opportunity to align with the scenario and strategy and stick the opportunity card in column 3. There is only one possible way to align all 36 cards correctly. 5.The observer makes notes according to the criteria given on the observer sheet. 6.The groups gather around a table where they can work without having their completed answers and table seen by the other groups. 7.As soon as the group is satisfied that they have aligned all 36 cards correctly, the observer reports to the teacher who makes a note of how long the team took to finish the game. 8.Groups keep their finished grids on their tables until all the groups have finished. 9.The observer checks that no more shifting of cards is done while the group waits for all the groups to finish. 10.When all the groups have finished, they put their flipchart posters on the wall. The group observer stands at his/her group’s poster. 11.The teacher now reads out the correct alignment and the observer scores the group’s answers. Scoring: 1.The teacher gives the correct answers for all 12 scenarios. The teacher has a table with the correct alignment. 2.The observer allocates 1 point for each correct answer in Column 4 (the score column). All three cards must be correctly aligned for 1 point. 26 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 3: Week 8–10 3.Should it happen that more than one team gets the same top score, the teacher will make the final decision by checking on his/her notes to see how long each team took to complete the game. 4.The team with the highest score (or if there are more than one top score, the team with the best score and who finished first) wins the game. Feedback and debriefing: 1.The observer gives feedback on the team activity using the notes recorded on the Observer Feedback form. 2. Your teacher leads the discussion and encourages contributions from both the observer and the class. 3.Your teacher ties up the lesson by reinforcing the importance of problem-solving skills in business and in life generally. STAGE 1: DOING ACTIVITY 3.1 Play the Business Strategy Game Play the game. While you are playing: -the Observer will take notes using the Observer Feedback form (see Activity 3.3) -glance at the Observer Feedback form and make notes as ideas about your team’s performance occur to you. STAGE 2: SHARING – HOW DID IT GO? ACTIVITY 3.2 Reflect on the Business Strategy Game After you have finished playing the game, in groups discuss the following orally and then complete the activity in writing in your Informal Assessment Portfolio: a) How did your group perform during the game? - What went well? - What obstacles did you encounter? 27 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 3: Week 8–10 b) What did you learn from this game - about yourself? - about business? STAGE 3: ANALYSING/PROCESSING ACTIVITY 3.3 Analyse the Business Strategy Game a)Why is it important to know what strategies are available for businesses to pursue? b)Using the Observer Feedback form below, and the notes you pencilled in while playing the game, think about your team’s performance and pencil in your view of the team’s performance. Tick your decision in the correct block. Give a reason for your decision in each case. c)Listen to the observer analyse your team’s performance by reading the table below as feedback is given. d)Your teacher will lead a class discussion: -Why did the winning team do well? What was the reason for their success? -Why did the other teams not perform as well? What could they improve on? -What skills does a successful business need in times of crisis? -What behaviour could be considered negative in times of crisis? Observer Feedback Form Excellent Team performance quality Identifying correct strategies Teamwork and cohesion (“tightness”) Leadership skills Effective use of time 28 Fair Under-performed Reason/s – identify areas for improvement if any LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 3: Week 8–10 STAGE 4: LINKING THE THEORY TO THE CAPS ACTIVITY 3.4 Discuss business strategies a)Differentiate between following types of strategies and make use of examples to explain the strategy. -Backward integration -Market development -Concentric diversification -Liquidation b) Link a description from COLUMN B that matches an item in COLUMN A: Column A Column B 1. Micro environment A. PESTLE 2. Market environment B. SWOT 3. Macro environment C. Porter’s Five Forces STAGE 5: APPLYING LEARNING TO THE REAL WORLD ACTIVITY 3.5 Apply business strategies to the real world a)How does what happened in the Business Strategy Game mirror what happens in the business world? b)What did you learn in the game that will help you be a better entrepreneur or an enterprising employee once you are operating in the “real world”? ACTIVITY 3.6 Case Studies: Strategies In pairs, read the text in Reading 3.6, discuss the questions orally and then complete the activity in writing in your Informal Assessment Portfolio for homework. 29 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 3: Week 8–10 Reading 3.6: Strategies The word “strategy” may be interpreted in various ways. In Business Studies textbooks and the curriculum, when you see the word “strategy” you will immediately think of using the word academically to describe the strategic management process to solve business-related problems in the macro environment. In other words, Business Studies in term 2 focuses on how businesses can respond to challenges, in other words, to react to problems in a manner that will be best for the business (Reactive). See Activity 3.4 above. However, strategies can also be proactive, i.e. they can be used to generate business ideas for services and products which address community needs. They can be used to solve problems. How do dictionaries define strategy? The online Business Dictionary defines a strategy a little less formally as: 1.A method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem. 2.The art and science of planning and marshalling resources for their most efficient and effective use. The term is derived from the Greek word for generalship or leading an army. (Read more: http://www.businessdictionary.com/definition/strategy.html#ixzz3JynqdIyR) On your own: a) What is a strategy? Define the term in your own words. b) What is the difference between reactive and proactive strategies? c) Why is it interesting that the word originated from the Greek word for “Military General”? ACTIVITY 3.7 Meet Thato Kgatlhanye Now read the story of Thato Kgatlhanye in groups and answer the questions by preparing a poster on flipchart paper to present in the feedback session. 30 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 3: Week 8–10 Reading 3.7: Solving problems in Africa – The lack of opportunity Meet Thato Kgatlhanye, a 21-year-old entrepreneur with a purpose Thato Kgatlhanye is a 21 year-old South African, co-founder of Repurpose Schoolbags, an innovative company which designs school bags made from up-cycled plastic that integrate solar technology, charging up during the day and transforming into a table lamp at night. The bags enable pupils living in poorer neighbourhoods, where electricity is scarce, to study at night time at no cost to their households. They also help prevent traffic injuries which take place when car drivers run over school children crossing poorly lit streets. South African roadside fatality rates are estimated to be double the world average… Thato’s bags are eco-friendly. They are made of recycled materials and produce solar energy and they are life-saving as they help prevent roadside fatalities. They are also “empowering”. They help unprivileged children living in households without electricity to read, write, and study for up to 12 hours. The need for such a product is real and huge in many developing and emerging countries, and Thato is confident that her project will raise interest outside South Africa in the future. “I am a struggling billionaire. I’m rich, but my bank just doesn’t know it yet,” she said. TEXT AND PHOTOS BY MIORA RAJAONARY (EDITED AND SUMMARISED VERSION) The original article and pictures were written and taken by Miora Rajaonary for Emerging Innovation, a new magazine of creative ideas and management practices in the Global South. 31 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 1 - Session 3: Week 8–10 a)Which definition of “strategy” does Thato illustrate? b)Clearly, Thato is a problem solver. What four problems in her community does she solve? c)Thato is confident that her project will raise interest outside South Africa in the future. “I am a struggling billionaire. I’m rich, but my bank account just doesn’t know it yet,” she said. - What entrepreneurial attitudes does Thato reveal in the quote? - Why do you think Thato’s attitude is part of her success story? 32 General objectives/link to the CAPS The objectives for the startUP&go material for term 2 are to: •Understand the concept of Social Responsibility and Corporate Social Responsibility and implications for both business and communities •Explore and assess the extent to which a business venture addresses issues such as human rights, inclusivity and environmental issues •Differentiate between management and leadership styles and approaches and appreciate the role of personal attitude in success and leadership •Understand the concept of quality and explore the relation between quality and the various business functions and the impact of quality on different business structures (e.g. sole traders versus large businesses), using the elements of Total Quality Management (TQM). Entrepreneurship focus Session 1–4: Week 1–8 TERM 2 For Term 2 in Grade 12, the main focus of the startUP&go package is also on key factors that affect the day-to-day operations of a business. Due to limited resources available to small business entrepreneurs, they encounter difficulties in responding to general environmental and social issues that affect their businesses. On the other hand, large corporations are expected to have a more socially responsible role in their communities and take the lead in resolving local and regional environmental issues. Entrepreneurs often encounter problems regarding their leadership and management styles. Entrepreneurs need to be team leaders and ready to resolve conflicts, both internally and externally when they occur. Being creative as a leader is key to resolving such problems. Entrepreneurship is a key factor in obtaining quality results by personnel within the firm. An entrepreneur has to be both a great leader as well as a great manager. A great manager maintains quality performance within the following eight functional areas of a business: a) Human Resources, b) Sales and Marketing, c) Public Relations, d) Purchasing, e) Finance and Accounts, f) Production/Operations, g) Administration and IT and h) General Management. As a leader, the entrepreneur is able to delegate responsibility for achieving outstanding performance in these eight business functions to managers and subordinates within the business. 33 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 1: Week 1–2 SESSION 1 Week 1–2 Concept of corporate social responsibility 2–3 hours Session focus: Henry Ford once said that, “A business that makes nothing but money is a poor business.” The concept of corporate social responsibility encompasses this view. In Grade 11 you learned about the concept of social responsibility – a responsibility of every individual to take care of the community and environment in which they live. In Grade 12 the focus will be on the concept of corporate social responsibility as well as what are then benefits and drawbacks of corporate social responsibility for a business and a community. You will view a video interview with the Corporate Social Responsibility (CSR) representative of a large commercial bank so that you are clear about CSR and Corporate Social Investment (CSI) and why CSR and CSI are important to the business and the community. STAGE 1: DOING Viewing 1.1: Nedbank CSR and CSI View the video, make notes and then answer the questions in groups, first orally, and then for homework in writing in your Informal Assessment Portfolio. 34 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 1: Week 1–2 ACTIVITY 1.1 Nedbank: Corporate Social Responsibility (CSR) and Corporate social Investment (CSI) a) How are CSR and CSI implemented at Nedbank? b) Why is Nedbank involved in CSI? c) Discuss education as a strategic focus area in Nedbank’s CSI programme. d) Discuss health as a strategic focus area in Nedbank’s CSI programme. e) Discuss skills development as a strategic focus area in Nedbank’s CSI programme. f) Discuss community development as a strategic focus area in Nedbank’s CSI programme. g) Discuss staff voluntarism as a strategic focus area in Nedbank’s CSI programme. h) How does Nedbank decide on which projects or cause-worthy organisations to support as part of their CSI programme? i) What is the difference between Marketing and CSI? STAGE 2: SHARING – HOW DID IT GO? ACTIVITY 1.2 Reflect on CSR and CSI video a)In pairs name three companies that you associate with very good Corporate Social Responsibility and state why. b)Mention four Corporate Social Investment projects in South Africa that you think are very worthy projects. Explain why. 35 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 1: Week 1–2 STAGE 3: ANALYSING/PROCESSING ACTIVITY 1.3 Analyse CSI projects In groups, discuss CSI projects that you know about. Redraw the table below onto flipchart paper and prepare to give feedback after you have completed it. a)Name four types of socio-economic issues that CSI projects can address. b)Complete the following table by referring to CSI projects that are regularly advertised or which you know about. Company CSI Project Socio-economic issue addressed One benefit for the community One benefit for the business 1. 2. 3. 4. c) Now discuss discuss a few of these well-known projects and how they are perceived by Grade 12 learners STAGE 4: LINKING THE THEORY TO THE CAPS ACTIVITY 1.4 Understand CSR and CSI and social responsibility a)Distinguish between corporate social investment and corporate social responsibility. b)Differentiate between benefits of CSR for businesses and for the community. c)Why do you think it should be a strategic management decision that a business should contribute to the community? d)Name and explain 5 ways in which a business can act in a socially responsible way towards its employees. e)How can a business’s social responsibility have a positive impact on the triple bottom line? 36 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 1: Week 1–2 STAGE 5: APPLYING LEARNING TO THE REAL WORLD ACTIVITY 1.5 Apply CSR to real world Reading 1.5: Social or Business Entrepreneur? Social entrepreneurs create innovative solutions to social problems. More specifically, social entrepreneurs create and try to sustain social value. They usually operate and think both like NGOs and business and draw upon the experiences of both the business and non-profit worlds. To sum up, social entrepreneurs run their social enterprises as sustainable businesses, in other words, making money is also important because they know that without money, their social contribution may not last. Business entrepreneurs typically measure performance in profit and return while social entrepreneurs also take into account a positive return to society. a) Why do you think it is important for individuals and businesses to give back to the community? b) Can you make money as a “socially entrepreneurial” person? Explain how. c) What is the defining difference between a social entrepreneur and a business entrepreneur? Learner’s Journal: Write a short reflection of whether or not you feel you are a social entrepreneur. Begin with the following words: “I am/am not a social entrepreneur because …” 37 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 2: Week 5 SESSION 2 Week 5 Management and leadership 3–4 hours Session focus: In Grades 10 and 11 management and leadership were explored in terms of challenges in the micro environment. However, management and leadership are two unique concepts, and in Grade 12 a distinction between these two concepts will be made. Different circumstances sometimes demand leaders to use different approaches to succeed. It is thus important to understand and distinguish between the various leadership theories and styles at a leader’s disposal. You will play a game in which two different leadership styles will be experienced first-hand. STAGE 1: DOING ACTIVITY 2.1 The leadership game Play the Leadership Game Make notes on how your leader performs. Objective The objective of the leadership game is to demonstrate: • the differences between leadership styles • the roles of leaders as opposed to followers and managers. A description of the game In this game, leaders will be selected by your teacher and each leader will be given a card on which a leadership style is described. You will then have to enact the leadership style given in your group which has to solve a fairly complicated problem. An observer, who is also 38 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 2: Week 5 nominated by your teacher, analyses the leader’s verbal and nonverbal communication as well as your group’s reactions according to a prescribed set of criteria. After the game, a debriefing session is held in which the answer to the problem is given. Each group explains how they got to the answer. Finally, the observer gives feedback on the leader and the group’s behaviour. How to play the game 1.Divide into teams of 4 learners. Remember that observers and leaders have already been selected by your teacher. 2.One observer and one leader are assigned to each team so that there are now teams of 6 learners. 3.Each team will receive a Team Instruction Sheet (Reading 2.1) and five minutes to read the instructions and to ask any questions regarding the problem. 4.While the teams are reading the instructions your teacher will make sure the Observers understand that they will be expected to complete their feedback forms while the game is being played. 5.To observe the interaction among the team members, the leader should ensure that the Observer(s) stand behind each of the teams. 6.The team leader starts the problem-solving process – s/he enacts the role assigned throughout the process. The role he/she is assigned is captured on the card handed out prior to the game. 7.The observer takes notes of the behaviours of the leader and the followers according to the criteria on the Observer Feedback Sheet below the reading. 8.Once your team has completed the task, put up your hands, so that your teacher can jot down your time and the sequence of team completion. If you have finished ahead of time, start answering the questions below the activity in your Informal Assessment Portfolios. 9.A class discussion follows: •The team that finished the game first and had the correct answer give the strategy they used and the specific steps to solve the problem. •Other teams, who solved the problem in a different way, are also given the chance to share their strategy. 10.Observers come to the front of the class and stand in front of the blackboard or a flipchart. •They have to say what type of leadership style they observed. •If correct, they give the features of the leadership style while the leadership traits are summed on the board by the teacher as the observers give feedback. 39 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 2: Week 5 Reading 2.1: Team Instruction Sheet The ancient city of Mapungubwe is located in South Africa. In the main square of the city, there is a monument in the form of a rectangular obelisk. The people started to build the monument on the first day of January to honour the founding of the city. The actual structure was built in less than two weeks. Obelisk: a tall, four-sided narrow monument which becomes narrower at the top. Your team wants to determine on which day of the week the monument was completed so that the dedication of the monument can be celebrated each year in the future. Information has been discovered that the building of the monument actually began on 1 January. To help solve this problem, the team will be given information that is related to the building of the monument. This information should be shared among the team members. The first task is to choose a member of your team to serve as a “team leader.” The leader will then receive instructions from the teacher. Information Regarding the Task TIP: Separate each piece of the following information so that the information can be categorised. 1.Day four in the week is called Thursday. 2.Day five in the week is called Friday. 3. Day six in the week is called Saturday. 4. There are six days in the Mapungubwe week. 5. The total working day has nine periods. 6. The team rests for two periods during the working day. 7. The team works for seven periods during the working day. 8. Workers each lay 150 blocks per period. 9.When work is taking place on building the monument, there is only one team of ten workers on site. 10. One member of each team is a supervisor and does not lay blocks. 11. The basic measurement of time in Mapungubwe is a day. 12. A work day in Mapungubwe is divided into work periods and rest periods. 13. The height of the monument is one hundred meters. 40 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 2: Week 5 14.The length of the monument is fifty meters. 15. The width of the monument is ten meters. 16. The monument is built of stone blocks. 17. Each block is one cubic meter. 18. Day one in the week is Monday. 19. Day two in the week is called Tuesday. 20. Day three in the week is called Wednesday. 21. One member of each team makes sure the bricks are the right size and does not lay blocks. 22. The government decreed that no work takes place on Friday. 23. Because of the religion no work takes place by the teams on Saturday. 24. The height of the monument is greater than its length or its width. 25. Only one team of workers at a time can work on the construction of the monument. 26. Length X width X height = area. Observer Feedback Report Criteria 1 (Not at all) 2 (Fair) 3 (Good) 4 (Excellent) Additional notes 1 (Not at all) 2 (Fair) 3 (Good) 4 (Excellent) Additional notes The Team … …thought creatively to solve the problem …members were all involved in solving the problem …members influenced each other in the team work Criteria The Leader … ...categorised the information to solve the problem …used a definite strategy to solve the problem …inspired and motivated others on the team …was willing to give orders and direction to the team What strategy did s/he use? How? What was the effect? Good? Bad? 41 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 2: Week 5 …communicated effectively …encouraged teamwork …took responsibility for the result of the task …was task-oriented as opposed to people-oriented Explain How did time affect the leadership style? …was influenced by time a) Who made the final decision as to the day the final brick was laid? What does this tell you about the person? b) What leadership style was shown in your group? Explain how you know this, using Reading 2.2 below to help you. STAGE 2: SHARING – HOW DID IT GO? Read through these styles of leadership before moving to Activity 2.2. Reading 2.2: Leadership styles Democratic leadership style Autocratic/Authoritarian leadership style This leader will use language like this in leading the group: This leader will use language like this in leading the group: “Everybody must say how they feel – we are all equal.” “There is only one person who will be making the final decision – and that’s me” “Let me quickly sum up so that we all understand…” “If you have anything to say, ask for my permission by putting your hand up” “Hmm… I hear what you say – that’s a great idea!” “Stop right there…I am in charge and I will not allow you to continue on that topic – it’s wasting our time” “We seem to be disagreeing … let’s get back to that point later and discuss it as a group…” “Let’s vote – all our opinions are important!” Body language: friendly, generous, eye contact with group, leaning forward to explain, open palms to strengthen what you say, etc. 42 “Let’s go back to the point I was making…” “We will solve the problem in this way….we are wasting time by thinking of other ways” Body language: assertive hand movements (no! be careful = finger pointing), lack of real eye contact, pen in hand, unfriendly or at least neutral. LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 2: Week 5 Laissez-faire/Delegated/Free Rein leadership style Bureaucratic leadership style This leader will use language like this in leading the group: This leader will use language like this in leading the group: “Thabo, will you take charge? I am going away for the week. Sort it out! You don’t need my help!” “Here are the rules. Let’s move around the group… Does anyone have anything to add? Dikonelo? Sechaba?...” “No, Thabo. I think Mpho should be in charge now!” (goes back to texting) “Please do not interrupt, Peter! It’s not your turn yet! Rules are rules…” “Go well, guys! Make a good decision. Bye!” “No speaking out of turn!” Body language: clearly not interested in the process of solving the problem, e.g. texts on his/her phone while meeting is continuing or has a whispered cell phone conversation while the meeting is on, keeps looking at his watch. “Let’s keep to the agenda!” Body language: often looks at watch and agenda, irritated if someone speaks out of turn, points at the agenda, points to each person to give them a turn to speak. ACTIVITY 2.2 Reflect on the leadership game After the game, teams of six break up into pairs and read the above text to discuss orally. They then answer the following questions in writing in the Informal Assessment Portfolios. a) Did you feel the role you played (as leader, observer, or team member) suited you? Explain why. b) If you would have preferred another role, explain which role and why. c) If you were a team member, how did you react to the leader’s approach? d) Do you think your leader was a good manager? 43 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 2: Week 5 STAGE 3: ANALYSING/PROCESSING ACTIVITY 2.3 Analyse the leadership game In pairs, discuss the following orally and then complete in your Informal Assessment Portfolio. a) List three things that the leader did well. b) What could the leader have done to improve the team’s performance? c) Which leadership style do you think would have solved the problem most efficiently? Explain why. d) Did other natural leaders emerge within the team while the game was being played? e) Did somebody in the team try to manage the process? Who? Was it successful? STAGE 4: LINKING THE THEORY TO THE CAPS ACTIVITY 2.4 Differentiate between leaders and managers You now have a fair idea of what leadership is. Go back to Reading 2.2 to refresh your memory. a) Define leadership and discuss five differences between leaders and managers. b)Read the descriptions below and then answer “true” or “false” next to each description in the appropriate column. If the answer is false, write the “true” answer in the last column Description 44 1. Some people can be leaders and managers. 2. A manager is usually “born” but a leader is usually “made”. 3. A leader carries out decisions. 4. Leaders are more important to the success of a business than managers. 5. People follow a leader out of their own choice. 6. A leader sets the new vision, while a manager carries it out. T/F Correct statement LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 2: Week 5 7. A manager is a good administrator and managers are usually people-oriented. 8. Leaders control people by setting rules and processes which staff has to follow to reach the company's vision. 9. There are probably more inspirational leaders than inspirational managers. 10. A manager’s role could change to a leadership role. 11. Leaders are motivators, innovators and clear communicators. 12. Managers have the important task of obtaining acceptance or getting “buy in” after a change has been made. 13. A manager is finally accountable for the success or failure of the organisation. 14. A manager focuses on systems and structures. 15. Power in leadership refers to the leader’s ability to hire and fire people. c)Jerry is the owner of XYZ suppliers. He explains work procedures, rewards employees for excellence and punishes them if targets are not met. • Identify the leadership style describe above • Evaluate the impact of this leadership style on business operations. STAGE 5: APPLYING LEARNING TO THE REAL WORLD ACTIVITY 2.5 Applying leadership to business Answer the following questions on your own: a)What have you learned about yourself that is a positive entrepreneurial step? I am _________, _________ and _________. b)What do you still need to learn to be successful after school? Explain your answer. Learner’s Journal: Write a short reflection of your own talents by using the following opening sentence: “After this game I have discovered that I am more of a leader/follower than a leader/follower, because…” 45 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 3: Week 6 SESSION 3 Week 6 Quality of performance with business functions 2–3 hours Session focus: The quality of a product or a service gives an indication of how effective the product or service is in satisfying a specific want or need. Throughout this section, the concepts of quality, quality control, quality assurance, quality performance and quality management will be refreshed and discussed in more depth. Total Quality Management (TQM) ensures that all eight business functions remain focused on producing to the best of their abilities. This concept, and the impact it has on businesses, will be discussed in depth. STAGE 1: DOING ACTIVITY 3.1 Quality control and the eight business functions View the video: Sedibeng Water, Quality Control In pairs, view the following documentary then draw a mind-map summing up the eight business functions as well as mentioning ways customers perceive quality. 46 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 3: Week 6 STAGE 2: SHARING – HOW DID IT GO? ACTIVITY 3.2 Reflect on Quality Control video After doing this, pairs form small groups to discuss orally, and then answer the following questions in writing in their Informal Assessment Portfolios. a) Why is quality assurance and quality control important for a business? b) Why do businesses focus on total quality management? c) How does an organisational culture fit in with total quality management? STAGE 3: ANALYSING/PROCESSING ACTIVITY 3.3 Analyse the eight business functions and quality control In pairs, identify the eight business functions and give two examples of how a business can ensure quality control of each function, by completing the following table: Business function Example 1 Example 2 47 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 3: Week 6 STAGE 4: LINKING THE THEORY TO THE CAPS ACTIVITY 3.4 Implementing quality control and continuous improvement cycle a)Explain the impact of a total quality management system on small and large businesses with reference to continuous skills development. ABC Stationery ABC Stationery buys their stationery directly from John’s Factory. A day after delivery ABC Stationery discovered that some of the stationery was faulty. ABC Stationery immediately informed John’s Factory about the situation but nothing was done. John’s Factory lost many customers as a result of this challenge. b)Advise John’s Factory on how to implement a continuous improvement cycle to improve the quality of their product. c) Briefly state the benefits of implementing a good quality control system in a business. STAGE 5: APPLYING LEARNING TO THE REAL WORLD ACTIVITY 3.5 Apply quality control to business If you open up your own business, mention three ways/policies (using total quality management) that you would put into place to ensure your customers are always satisfied. 48 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 4: Week 7–8 SESSION 4 Week 7–8 Revision 1–2 hours ACTIVITY 4.1 Revision: Business Strategies Identify a specific business strategy to address the problem and describe the process in each of the scenarios that follow: a)The Anesti Group gains ownership of Anesti Sports Centre (sports industry), Anesti Independent School (education industry) and Anesti Restaurant (food industry). b)8ta, a South African cell-phone brand, has decided to enter the cell-phone market in Indonesia. c)Giovanni’s Pizza has decided to purchase Cheddar Chaps, a well-established cheese factory. d)TOPS suppliers are on the verge of bankruptcy and the owners, in an attempt to save the business, have decided to sell shares in the business to a local investor. e)Samsung embarks on a new promotional campaign using social media such as Facebook and Twitter to market their products in order to increase their market presence dramatically. f)Coffee King and a large hotel franchise come to an agreement that Coffee King will replace all the coffee shops at the Hotel group sites. g)Van Zyl’s Biltong is not showing growth by selling biltong alone, so they decide to start selling soft drinks and pancakes as well. h)In an effort to try and increase profit margins, a national bank has decided to let go of two employees at each branch. 49 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 2 - Session 4: Week 7–8 Corporate Social Responsibility and Corporate Social Investment Sharks Couriers is a courier company situated in Bothaville. Describe how Sharks Couriers can engage in corporate social investment programmes to improve on the long-term challenges given below, which are facing both the local community and the company. Use examples to motivate your answer. i) Education j) Crime k) Housing Leadership The following statements represent a certain leadership style. Identify the different leadership styles. l) This leader considers the needs and input of followers and encourages group involvement. m) This leadership style relies on organisational rules and policies. n)This leader tells employees what to do, but isn’t prescriptive in how they should carry out these tasks. 50 General objectives/link to the CAPS The objectives for the startUP&go material for term 3 are to: •Determine the extent to which a particular form of ownership can contribute to the success or failure of a business •Examine the accurate and concise verbal and non-verbal presentation of a variety of business-related information (including graphs), respond professionally to questions and feedback, and amend information as necessary •Describe the criteria for a logical and effective presentation of information, know how to handle feedback and assess presentations in order to identify areas for improvement. Entrepreneurship focus Session 1–3: Week 1–7 TERM 3 For Term 3 in Grade 12, a main focus of the startUP&go package is on starting a business as well as the advantages and disadvantages of various forms of business ownership and their impact on business operations. Practical examples of the characteristics of entrepreneurs who use various forms of business ownership will be highlighted. Examples of making presentations to obtain funding to start a business will also be highlighted. Convincing others that the business will succeed is a critical part of becoming a business owner. A practical way for you to understand the opportunities as well as the disadvantages of owning a business, is to practise business operations within the safe environment of the classroom. Not all of us are capable of being an entrepreneur, but we are all able to be entrepreneurial in the way which we interact with others in various learning situations. A business simulation in manufacturing will help you understand how employees interact to practise the eight business functions to produce and sell envelopes. This is revision of work done earlier in the year. One of the most distinguishing characteristics of successful entrepreneurs is their ability to present their dreams both verbally and audio-visually. In term 3 you will explore ways in which you can improve your presentational skills and grow your confidence and flair in presentations. 51 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 1: Week 3 SESSION 1 Week 3 Forms of ownership and their impact on business operations 2–3 hours Session focus: In Grades 10 and 11 the focus was on learning about the various forms of ownership. In Grade 12, a revision of these concepts – characteristics, advantages and disadvantages of forms of ownership – will be done but the emphasis will now shift to a more in-depth comparison on the various forms of ownership. An analysis will also be done to ascertain how the selection of a form of ownership can contribute to the success or failure of a business, and how this selection impacts business operations. STAGE 1: DOING Viewing: 1.1: Forms of ownership a) View the video, make notes and then complete the following questions in writing in your Informal Assessment Portfolio. ACTIVITY 1.1 Business scenarios 1-6 Business scenario 1: - - 52 Identify the form of ownership applicable here. Name one advantage of this business. LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 1: Week 3 Business scenario 2: - - Identify the form of ownership applicable here. What is implied by the business as “having no legal personality?” Business scenario 3: - - Identify the form of ownership applicable here. What is a disadvantage of this form of ownership? Business scenario 4: - - Identify the form of ownership applicable here. What is implied by the business having “unlimited continuity”? Business scenario 5: - - Identify the form of ownership applicable here. Name two requirements of this form of ownership. Business scenario 6: - - Identify the form of ownership applicable here. Name three legal structures commonly used by these types of businesses. b) After answering the questions, complete the following on a flipchart page: - Draw a mind-map summing up the different forms of business ownership. Try to sort them into a meaningful summary. - Stick your poster onto a wall. One person in your group remains at the poster to answer questions from other groups. STAGE 2: SHARING – HOW DID IT GO? ACTIVITY 1.2 Reflect on forms of ownership Groups now walk around from poster to poster and make comments in which they share ways of improving posters and what was successful in each poster. Using a different coloured koki pen, they “mark” the poster. The group representative is there to answer questions. 53 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 1: Week 3 STAGE 3: ANALYSING/PROCESSING ACTIVITY 1.3 Analyse the forms of ownership a) Which group presented the best summary of the information on the video? b) Why was it so clear and well-organised? STAGE 4: LINKING THE THEORY TO THE CAPS ACTIVITY 1.4 Understand forms of ownership 1. Distinguish between limited liability and unlimited liability. 2. Compare the success or failure of a personal-liability company and a partnership in terms of: a) Capacity b) Legislation c) Management STAGE 5: APPLYING LEARNING TO THE REAL WORLD ACTIVITY 1.5 Apply forms of ownership to business Which form of ownership is the most attractive to you? If you were to open your own business, what entity would you register it under, and why? 54 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 2: Week 4–5 SESSION 2 Week 4–5 Presentation of information and data response 2–3 hours Session focus: Communication is one of the key elements of a business’ success. How the business presents information – whether internal or external – to its stakeholders is critical to the success of the business. The emphasis in Grades 10 and 11 was to introduce verbal and non-verbal ways to present information, as well as responding professionally to feedback. In Grade 12 the focus shifts to mastering the art of presenting by using accurate information and linking it up with appropriate supporting materials to ensure professionalism. STAGE 1: DOING Viewing 2.1 Meet Tumi, presenter In pairs, view the video in which Tumi, an enterPrize Challenge winner, shares her trade secrets about successful presentations. Discuss the questions orally and then complete the questions in writing in your Informal Assessment Portfolio. ACTIVITY 2.1 View video: Meet Tumi, presenter a) What was the occasion of Tumi’s best business presentation? b) Is it difficult to make a good presentation? Explain Tumi’s viewpoint. c) How important is analysing your audience (age, educational level, language usage, etc.) when you prepare a presentation? d) How did Tumi structure the information in the presentation of her business plan? 55 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 2: Week 4–5 e) Did Tumi use any support materials? Explain which and why they were appropriate. f) How important is body language when you make a presentation? g) How should a presenter dress for the occasion? h) How should one deal with questions asked at the end of your presentation? i) What should you do if you are not able to answer a question? j) How do you handle a hostile audience? k) What tips does Tumi have for Grade 12 learners who would like to improve their business presentation skills? STAGE 2: SHARING – HOW DID IT GO? ACTIVITY 2.2 The use of audio-visual aids in presentations Tumi uses audio-visual aids in her presentations. How do you know when to use which aid? Complete the table by suggesting whether a specific graph or whether a table or diagram should be used for each scenario. Why is your choice appropriate? Scenario 56 a) You want to group information so that the audience gets a better picture. b) You need to explain how a certain new product looks. c) You wish to compare, year by year, the performance of two products over a period of 12 months clearly showing peaks. d) You want to see the whole as the proportions of its components, or wedges. e) You want to add reality and provide a visual record. Audio-visual aid (if a graph, specify the type) Why is this choice appropriate? LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 2: Week 4–5 STAGE 3: ANALYSING/PROCESSING ACTIVITY 2.3 Help Lebo present her business plan Your cousin, Lebo, has to prepare and present her business plan to a group of stakeholders and potential investors in two days’ time. Send her an e-mail and advise her on her presentation of the business plan so that it is of high quality and a successful presentation which meets its objectives. You must include the following aspects in your e-mail: • How should Lebo prepare for the presentation? • Evaluate any FOUR methods that she can use to present the information. • Propose ways to handle hostile feedback in a professional manner. • Recommend possible focus areas that will improve the quality of Lebo’s presentation. STAGE 4: LINKING THE THEORY TO THE CAPS ACTIVITY 2.4 Differentiate between types of presentation documents Name the type of presentation document described in each statement below: a) Printed copies of financial statements to support an electronic presentation on this year’s financial results. b) Production figures for 2013 and 2014 on a histogram. c) A short video explaining the steps to complete an application form. d) Drawings and pictures in the user manual of a fax machine. e) A flow chart explaining the steps in the production process. STAGE 5: APPLYING LEARNING TO THE REAL WORLD ACTIVITY 2.5 Applying presentation skills to business Name situations you may need to use your presentation skills in your life. Why do you think it is important to have good presentation skills? 57 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 3: Week 6–7 SESSION 3 Week 6–7 Revision 3–4 hours Session focus: Entrepreneurs face many challenges in the micro and market environments. In the micro environment this may be poor workmanship skills and low productivity of employees as well a lack of management and leadership skills of business owners themselves. In the market environment, challenges include shortages of supplies and raw materials for production, competition from other firms and changes in consumer buying behaviour. In this final session of startUP&go, you will play the Envelope Factory Game to revise production issues, conflict management, leadership styles and the three economic sectors. STAGE 1: DOING ACTIVITY 3.1 Play the envelope factory game Play the Envelope Factory Game Objective The objective of the envelope factory game is to expose you as factory owners and employees to some of the challenges of production, conflict management and leadership styles. You will have to buy production equipment and raw materials from suppliers, produce high quality envelopes and sell these to buyers. In the process you must demonstrate workmanship skills, leadership and management skills, as well as an understanding of the challenges and control factors in each business environment. Methodology of the game The following business scenario is simulated in this game: •Divide yourselves into groups according to your teacher’s instructions. •Each group of learners represents a newly established envelope factory. Currently a serious shortage in the supply of envelopes is being experienced in the market environment. 58 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 3: Week 6–7 •As a result, each new envelope factory wants to use this opportunity to establish their business as quickly as possible in the market. Therefore they have to buy the necessary material and produce as many envelopes as possible in a short space of time to meet market demand. Then they must sell their stock at the best prices possible to office supplies companies in need of envelopes. The methodology followed in the envelope factory game is as follows: •Each group starts with R300 in their bank account. •Teams must then decide how much production equipment they will buy such as the number of scissors and glue. A pair of scissors costs R30 and a Pritt glue stick costs R50. •Each team then buys raw materials to start the production process. Each sheet of A4 paper costs R40. •The teams must produce envelopes as quickly as possible with the material they have bought. •The teams have the option to produce two sizes of envelopes (see instruction on the video on how to fold an A4 sheet to get a large square piece of paper or two smaller square pieces of paper). •During the production process, the groups also start selling the manufactured envelopes to either of the two buyers. •Depending on the quality, selling prices can range from R60 to R80 for a large well-manufactured envelope as compared to R30 - R50 for a smaller specialty envelope. Each team must decide how many large envelopes and small envelopes to manufacture during the game to achieve the most profit by the end of the game. •Money received from the envelopes sold is used to buy more raw materials to manufacture more envelopes. How to play the game •Divide yourselves into groups of 5 to 7 members each. •Go through the above instructions to understand the game and clarify any questions. •Your teacher will appoint 2 learners as buyers of two different office supplies companies. The buyers’ place of business should be at a desk in the front of the room (on either side of the supplier’s place of business). •Another 2 learners will be chosen as observers of all the groups. The observers will make comments at the end of the game on how the different teams managed the production and selling process. •You will be given a few sheets of A4 paper and practise making large and small envelopes for about 10 minutes. •While the groups are practising making envelopes, the buyers of envelopes will be told about the range of prices at which they must be prepared to buy envelopes. They must be objective and focus solely on the quality of the envelopes in determining a buying price. (TIP: Make sure the envelopes made in the practice round are taken in before the game begins.) 59 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 3: Week 6–7 •The two observers will study the Observer Feedback Form below to observe the groups during the game with these questions in mind. •The supplier receives the necessary stock of scissors, glue and raw materials and the buyers enough money to purchase envelopes from the groups. •Each group is given the opportunity to select a learner who will act as a Sales Representative responsible for selling the envelopes to the buyers. •Each group receives the indicated amount of money and all groups buy the necessary materials from the supplier of raw materials. •Groups have only 30 minutes to produce and sell their envelopes. •During the game, record your purchases on the record form below. Start the game •Groups start manufacturing envelopes, selling their stock, buying more raw materials, etc. •At any point in time, the sales representatives of the various groups can approach the 2 buyers and negotiate the best selling price possible. •Income generated from the sale of the manufactured envelopes is then used to buy more material for the production of more envelopes. •When the 30 minutes are up, the game is over. The observers should check how much profit each team has generated from their original investment of R300. The team with the most money is declared the winner. •The observers then give feedback using the following Observer Feedback Form which then leads to a class discussion in preparation for the revision exercises in Activities 3.2 – 3.5 Observer Feedback Form Criteria 1 2 3 Any leadership style observed? 4 Other comments: Describe… Ability to work in a team as a business? 8 business functions displayed with division of labour? Quality control measures were in place Special negotiating techniques used by to convince the buyers to pay a higher price for the envelopes? Entrepreneurial characteristics of the business were obvious Total 4 = yes, very definitely 60 3 = yes 2 = on and off/inconsistent 1 = not at all LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 3: Week 6–7 STAGE 2: SHARING – HOW DID IT GO? ACTIVITY 3.2 Reflect on the envelope factory game a) Mention three typical types of conflict that did arise/could have arisen in your envelope business. b) How could difficult people in the group be dealt with in the game? c) Describe the leadership style which was apparent in your envelope business. Was this effective? If not, which style would have been more effective? STAGE 3: ANALYSING/PROCESSING ACTIVITY 3.3 Analyse the envelope factory game a) Apply the three economic sectors to your envelope business. Give an example of each economic sector as it was experienced in the game: Economic Sector How the game showed this Primary Sector Secondary Sector Tertiary Sector b) Which business environment will be affected by an increase in inflation? c) Describe the impact of an increase of inflation on your envelope business. d) Conduct a SWOT analysis of your envelope business (mention two examples of each component). 61 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 3: Week 6–7 STAGE 4: LINKING THE THEORY TO THE CAPS ACTIVITY 3.4 Understand economic sectors 1. In which sector of the economy would you categorise the following businesses? a) A dry cleaning business b) Cherry’s Wine Farm c) Goldfield’s Mine d) Free State Manufacturers e) Standard Bank 2. Briefly state the benefits of implementing a good quality control system in a business. STAGE 5: APPLYING LEARNING TO THE REAL WORLD ACTIVITY 3.5 Apply the envelope factory game to business What has the envelope game taught you about how businesses operate in the real world, paying special attention to the three economic sectors? Viewing 3.6: Quiz ACTIVITY 3.6 Revision: Whole year’s work Quiz Term 1 62 1. The ____________ ensures that the relationship between employees and their union and employers and their organisations is regulated. LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 3: Week 6–7 2. A board of representatives comprising both employers’ and employees’ organisations is known as a ____________. 3. Businesses who use BEE suppliers when buying goods or services instead of Non-BEE suppliers engage in ____________. 4. The ability to think creatively is also known as ____________ thinking. 5. The ____________ regulates the South African credit industry. 6. When a business looks for suitable candidates within the organisation this is known as ____________ sources of recruitment. 7. The problem-solving technique which makes use of experts is known as the ____________ technique. 8. Threat of new entrants is one of ____________ Five competitor’s forces model 9. The framework used to analyse opportunities and threats in the Macro/External environment is known as ____________. 10. If BMW decides to buy over Mercedes, they are making use of ___________integration. 11. The letter W in the acronym SWOT stands for internal ____________ in the business. 12. ____________ is one of the reasons an employment contract can be terminated. 13. When employees are paid based on the amount of work they produce they are paid ____________ rate. 14. Tax evasion is an example of ____________ behaviour. 15. The Act that ensures workers who are injured during the course of their employment are compensated is known as the ____________. 16. A ____________ benefit is a form of compensation over and above the regular salary or wage. 17. The ____________ assures employees, students and employers that learning outcomes are relevant. 18. The first step of the problem-solving process is to ____________. 19. The problem-solving technique whereby pros and cons are compared is known as ____________. 20. An increase in the tax rate is an example of a fluctuation in this category of the PESTLE framework. 63 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 3: Week 6–7 Quiz Term 2 1. ____________ is when a business improves the quality of lives of key stakeholders in the way that they conduct their business. 2. CSI stands for ____________. 3. An area that a business can focus on in their CSI programme is ____________. 4. The right to vote is an example of our basic ____________. 5. The organisation formed to promote the protection of human rights for all individuals is known as the ____________. 6. ____________ is working together to achieve a common purpose. 7. The final stage of team development is ____________. 8. Extracting raw materials for further development forms part of the ____________ sector. 9. A hotel forms part of the ____________ sector. 10. A business has limited control of its ____________ environment. 11. The purchasing function is associated with the ____________ environment 12. A ____________ tends to motivate and inspire others. 13. The leadership style where the individual in charge does not listen to any suggestions from his/ her employees ____________. 14. ____________ leadership style encourages participation and empowers employees. 15. The process of ensuring products/services meet specific standards is known as ____________. 16. ____________ provide the business with resources to produce products and services. 17. The business function responsible for recruitment, selection and induction is ____________. 18.TQM stands for ____________. 19. The ____________ leadership approach allows workers to make and be responsible for their own decisions. 20. ____________ refers to the inclusion of a diverse group of people and ensuring that no one is discriminated against in the workplace. 64 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 TERM 3 - Session 3: Week 6–7 Quiz Term 3 1. ____________ is an example of compulsory insurance. 2. The ____________ is a formal market in South Africa where public companies are listed. 3. The formula used to calculate Simple Interest is: ____________. 4. The form of ownership which no longer exists in South Africa is a ____________. 5. ____________ shares are standard shares with no restrictions. 6. ____________ shares are shares in a company that is performing very well. 7. The amount a company pays out to its shareholders is known as ____________. 8. If Jerry invests R10 000 at an interest rate of 10% compounded annually for five years, then the amount Jerry will receive at the end is ____________. 9. When the debts are not only limited to the business, but also to the owner and his/her possessions, the form of ownership is said to have ____________ liability. 10. Which form of ownership is categorised by the letters ‘Pty (Ltd)’ as part of its name? 11. The form of ownership which is ended when one of the partners passes away is known as ____________. 12. The form of ownership which is the easiest and cheapest to start and end is ____________. 13. The audio-visual aid which reflects an image onto a whiteboard is known as a ____________. 14. Insurance products that pay back money used for retirement are known as ____________. 15.____________ is a payment for an event which is guaranteed to happen. 16. The ____________ is the percentage that will be earned in an investment or that will have to be paid back on a loan. 17. The initial amount which was invested is known as the ____________. 18. An example of a non-insurable risk is ____________. 19.The program used to present a slideshow as an audio-visual aid is ____________. 20. The people responsible for managing a public company are known as ____________. 65 LEARNER’S book Entrepreneurship Education - Grade 12 | Term 1–3 NOTES 66 Dear Grade 12 Learner, Welcome to the startUP&go programme! The startUP&go will take you on a journey over the next year through the world of entrepreneurship. During this journey we hope to build your entrepreneurial skills and competencies and make you better prepared to become an entrepreneur in the future, should you wish to be one! If you read this, then you are part of a special group of Business Studies learners in a Free State school, who have been selected to test the startUP&go programme over the next year, in Grade 10, 11 and 12, in the Business Studies course. During the next year you will learn about characteristics of enterprising people and you will learn that entrepreneurship is an attitude towards life that you can use in many ways to identify opportunities in your personal life, in your family and in your community. You will practise entrepreneurship through games and fun exercises with your teachers and fellow students in class and we hope you will have fun! Practising and learning about entrepreneurship must be fun! This is what the startUP&go package is about. The book you hold in your hand will assist you in nurturing your entrepreneurial talent. If you think you can, you can!