Assessment - Introduction To Business - ثاني ثانوي

Chapter 8 Review Business Concepts 8.1 Developing Start-up Ideas Assessment New market ideas are concerned with products or services that exist but are not present in all markets. New technology ideas involve new or relatively new knowledge breakthroughs. New benefit ideas are based on new and improved products or services or better ways of performing old functions. • Research shows that entrepreneurs claim prior work experience is the leading source of inspiration for start-up ideas. Personal experience leads many aspiring entrepreneurs to the start-up decision. Some entrepreneurs start their new ventures based on their hobbies and personal interests, which can add passion and energy to the enterprise. Personal contacts, trade shows, current trends, and trade publications are among other idea leads for start-ups. 8.2 An Overview of the Business Plan A business plan is a document that sets out the basic idea underlying a business and describes related start-up considerations. It should explain where the entrepreneur is presently, indicate where he or she wants to go, and outline how he or she proposes to get there. • A business plan has three key elements: (1) a logical statement of a problem and its solution, (2) a significant amount of hard evidence, and (3) candor about the risks, gaps, and assumptions that might be proved wrong. • Two important groups are users of business plans: company insiders, who use the plan as a framework to focus on important issues and activities, and outsiders, who use it to determine whether they will partner with the firm. • A range of sources of financing are available to new businesses, including personal savings, friends and family, bank loans, crowdfunding, angel investors, venture capital, and supplier credit. Each option has its own advantages and disadvantages. Frequently, an entrepreneur is given 15 to 20 minutes to make a presentation to spark investor interest in the new business. What most investors want to know is relatively straightforward, as is the order in which they want to see the topics in the pitch. Entrepreneurs must think like investors in order secure investment. P254 Chapter 8 | Starting a Small Business Ministry of Education 2024-1446

Think Critically About Business 1. Do you think being an entrepreneur is a skill that can be learned or must you be born with that character trait? Give reasons for your answer. 2. If you were a banker reviewing a business plan to determine if you will provide financing, what information would be most important in determining if you would support the small business or not?. 3. What are the advantages and disadvantages of hiring another, more experienced person to develop and write the business plan for the owner of a new business? 4. Suppose that you are pitching an innovative and high-tech new product idea to investors. Explain how you might integrate technology into your pitch in order to highlight your expertise in this field. 5. Abdullah needs money to launch his start-up. Suggest some of the options available to him to secure the funds he needs. 6. Explain what is meant by opportunity recognition, using an example to illustrate your answer. 7. "The most successful start-ups stem from original ideas that no-one else had already thought of." Do you agree with this statement? Give reasons for your answer. وزارة التعليم Ministry of Education 2024-1446 Assessment | 255

Develop Your Business Language Match the terms listed with the definitions. Term Your Choice Definition 8. Business Plan 9. New Benefit Ideas 10. New Market Ideas C. 11. New Technology Ideas 12. Opportunity Recognition e. 13. Pitch 14. Pivot g. 15. Business Model h. a. b. Identification of potential new products or services that may lead to promising businesses. Refocusing a start-up as it develops or completely recreating it if the initial concept turns out to be seriously flawed. New business ventures created "from scratch." d. Explains in a systematic and clear way how a business will generate profits and cash flows. f. Start-up ideas centered around providing customers with new or improved products and services or better ways of performing old functions. Start-up ideas centered around providing customers with an existing product or service not available in their market. An oral or video presentation of the business idea to investors. Start-up ideas involving new or relatively new technology, centered around providing customers with a new product or service. 16. Start-ups 17. Venture Capital i. A document that outlines the basic concept underlying a business and describes how that concept will be realized. j. Money provided by investors to finance new products and new businesses that have a good chance to be very profitable. Make Academic Connections 18. Technology Look at some of the key technological advances over the last 10 years. With reference to the types of ideas outlined in Figure 8-1, explain some of the new benefits or applications that these technologies provide. ليم 256 Chapter 8 | Starting a Small Business Ministry of Education 2024-1446

19. Geography Choose three geographical regions around the world, each with a different climate and landscape. Suggest how the three types of ideas for new start-ups could be applied to the needs of markets in these different environments. Make Your Case Nora is setting up her own online marketing consulting business, using an innovative new app to help other businesses get instant support directly from their smartphones. Nora will need a considerable amount of money to develop her app. She is confident she could secure a loan from a bank or funds from investors. However, she also has friends and family who could help her out. 20. List some of the key advantages and disadvantages of borrowing money from friends and family, as opposed to getting a loan from a bank. 21. If Nora decides to borrow money from family rather than a bank, does she still need to bother creating a business plan? Why? 22. Which of the three types of ideas outlined in Figure 8-1 is Nora's start-up idea an example of? Interactions and Connections 23. Survey at least 10 people in your community about their experiences as consumers with small businesses and large businesses. Ask them to describe the reasons they prefer to buy from small businesses and the reasons they prefer to buy from large businesses. Then ask them to describe the disadvantages of each. Summarize the results of your discussions in a chart or short written report. وزارة التعليم Ministry of Education 2024-1446 Assessment | 257