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Economic and management sciences

Grade 9

Entrepreneurship

Module 12

An idea for an enterprise

Activity 1:

To discuss the value of entrepreneurship for the community, and generate business ideas by means of a SWOT analysis

[LO 4.5, 4.1]

Read the following report from Die Burger of 5 July 2003 about the efforts of an entrepreneur in Cape Town:

A LONG WIRE FROM POVERTY TO A BETTER LIFE

Nellie Brand

Mr Unite Chimbadzo has come a far way from the streets of Johannesburg and Cape Town to the showroom in a building in Kloof Street where interesting wire art can be seen through dusty windowpanes.

On Tuesday evening his wire art took pride of place at the dazzling rugby dinner of the new Springbok team in the Cape Town international conference centre that was held to raise money for injured rugby players.

It is in the showroom and workshop in 8 Kloof Street where Loxionwires , the close corporation which was established by him and five other artists, is run. Previously their wire ornaments were made and displayed in the city streets.

He made 60 wire balls for the Springbok dinner, and this is the kind of order that the close corporation would like to get more of.

According to him they established Loxionwires so that they would be able to get larger projects. “We want to give our clients the confidence to place orders with us. If we keep on working in the streets we will never get big orders,” he says.

He has an intense desire to train other unemployed people and to save them from the morass of poverty, crime and drugs – a commonplace phenomenon in Khayelitsha where he lives. He says that the decision to establish the close corporation was driven by this desire.

The name of the concern is pronounced in the way that the ordinary township people say “location” – “the dwelling-place of those for whom we want to create work,” he says.

At present Loxionwires employs 42 people.

He says unemployed people are trained to ensure that the day they get a big order, they will be able to produce high quality products which will satisfy their clients.

He expects that business will improve towards the end of the year when they will be making wire Christmas trees.

He talks about unemployed young people who turn to crime in order to survive.

“It isn’t safe for me to be the only one in my township who goes home at night with money in my pocket,” he says. “I know that I will encounter danger somewhere along the way.”

He hopes that his example will convince such people that there are other ways of earning an income. “If I can do it, others can too. All I use is my hands and my brains to make an ornament that will sell and on which I won’t make a loss,” he says.

It has taken him 10 years since he came to South Africa from Zimbabwe in search of a better life to earn a reasonably fixed stream of income from his craft.

As a 19-year-old who had passed matric with five distinctions – amongst others in maths and science – but who was unable to get a fixed job since 1993, he saw how people in Johannesburg were able to survive on their earnings from wire art.

Questions & Answers

differentiate between demand and supply giving examples
Lambiv Reply
differentiated between demand and supply using examples
Lambiv
what is labour ?
Lambiv
how will I do?
Venny Reply
how is the graph works?I don't fully understand
Rezat Reply
information
Eliyee
devaluation
Eliyee
t
WARKISA
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Lambiv
multiple choice question
Aster Reply
appreciation
Eliyee
explain perfect market
Lindiwe Reply
In economics, a perfect market refers to a theoretical construct where all participants have perfect information, goods are homogenous, there are no barriers to entry or exit, and prices are determined solely by supply and demand. It's an idealized model used for analysis,
Ezea
What is ceteris paribus?
Shukri Reply
other things being equal
AI-Robot
When MP₁ becomes negative, TP start to decline. Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of lab
Kelo
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of labour (APL) and marginal product of labour (MPL)
Kelo
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Shukri
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Shukri
what is monopoly mean?
Habtamu Reply
What is different between quantity demand and demand?
Shukri Reply
Quantity demanded refers to the specific amount of a good or service that consumers are willing and able to purchase at a give price and within a specific time period. Demand, on the other hand, is a broader concept that encompasses the entire relationship between price and quantity demanded
Ezea
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Shukri
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Lilia Reply
what is the difference between economic growth and development
Fiker Reply
Economic growth as an increase in the production and consumption of goods and services within an economy.but Economic development as a broader concept that encompasses not only economic growth but also social & human well being.
Shukri
production function means
Jabir
What do you think is more important to focus on when considering inequality ?
Abdisa Reply
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Awais Reply
sir...I just want to ask one question... Define the term contract curve? if you are free please help me to find this answer 🙏
Asui
it is a curve that we get after connecting the pareto optimal combinations of two consumers after their mutually beneficial trade offs
Awais
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Asui
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities, where neither p
Cornelius
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities,
Cornelius
Suppose a consumer consuming two commodities X and Y has The following utility function u=X0.4 Y0.6. If the price of the X and Y are 2 and 3 respectively and income Constraint is birr 50. A,Calculate quantities of x and y which maximize utility. B,Calculate value of Lagrange multiplier. C,Calculate quantities of X and Y consumed with a given price. D,alculate optimum level of output .
Feyisa Reply
Answer
Feyisa
c
Jabir
the market for lemon has 10 potential consumers, each having an individual demand curve p=101-10Qi, where p is price in dollar's per cup and Qi is the number of cups demanded per week by the i th consumer.Find the market demand curve using algebra. Draw an individual demand curve and the market dema
Gsbwnw Reply
suppose the production function is given by ( L, K)=L¼K¾.assuming capital is fixed find APL and MPL. consider the following short run production function:Q=6L²-0.4L³ a) find the value of L that maximizes output b)find the value of L that maximizes marginal product
Abdureman
types of unemployment
Yomi Reply
What is the difference between perfect competition and monopolistic competition?
Mohammed
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Source:  OpenStax, Economic and management sciences grade 9. OpenStax CNX. Sep 15, 2009 Download for free at http://cnx.org/content/col11074/1.1
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