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ECONOMIC AND MANAGEMENT SCIENCES

Grade 4

HOW PEOPLE MAKE A LIVING

Module 3

THE ENTREPRENEUR

Entrepreneurship

We saw in the first two modules that all people try to achieve the highest standard of living that is possible for them. To be able to do this, they have to earn money by working for it. Some people know from childhood what work they want to do, but others only make this important decision once they have left school. Do you know what you would like to do one day?

Here are some examples of what you might become:

If you like working with your hands and are interested in machinery, you could consider becoming one of the following:

engineer

car mechanic

Perhaps you like plants and could become a:

florist

manager of your own nursery

farm manager

botanist

If you like working with numbers:

bank teller

clerk

actuary

accountant

If science fascinates you: scientist

laboratory assistant

pharmacist

medical practitioner

There also are many more possibilities.

All people, as we have mentioned before, do not work for large firms. Many decide to start their own businesses. They are called entrepreneurs.

The entrepreneur

We need entrepreneurs in our country. The government and the owners of larger businesses are not able to provide enough work for everyone. People need to create their own work and use their own talents to create job opportunities for themselves and also for other people.

Being self-employed (working for yourself) has many advantages. Can you think of some of these advantages? (First discuss it in small groups).

That’s right! As an entrepreneur you can:

  • work for yourself;
  • work when you want to;
  • use your talents and skills to your own advantage;
  • gain experience in the field in which you have an interest;
  • earn good money if you manage your business properly;

You must be willing to work hard and manage your business properly to be able to make a success of what you do.

An example of an entrepreneur

Activity 1

To learn how to make a profit [LO 4.2, 4.3]

Sonja is a Grade 4 learner who likes to make her own fancy paper. She sells it at the school’s market day and makes specific kinds of paper to order. She has borrowed money from her mother to buy the equipment she needs to start.

Let’s try to help her find our whether her “business” will be worthwhile. Will she earn enough money from it?

To make 100 sheets of paper, she will need:

6 rolls of toilet paper @ ± R1, 45 per roll

2 filter cloths @ ± R0, 60 per cloth

water

½ cup bleach (Jik) @ ± R0, 50

She parcels the paper in packets of 10 sheets with envelopes that are also made from her own paper. She ties the packets with a ribbon (50c) and prices them at R5 each.

  1. What does it cost her to make 100 sheets of paper with envelopes to match and to parcel them in packets of 10?
  1. How much will she receive if she sells all the packets?
  1. Will she have any money left over after she has paid her mother for what she borrowed from her at the beginning? How much?

It seems as if sonja’s business could be quite profitable if she plans well. wouldn’t you also like to become an entrepreneur?

Competition

Business people aim to provide products and services that are needed by consumers. Because of this, we have a baker who provides bread, a chain store that sells food, a clothing shop where we can get the clothing we need, etc. But what will happen when there is more than one baker, chain store or clothing shop? From whom will you as a consumer be buying?

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Source:  OpenStax, Economic and management sciences grade 4. OpenStax CNX. Sep 17, 2009 Download for free at http://cnx.org/content/col11086/1.1
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