DESCRIPTION OF BUSINESS

Chic Creativity will be a sole trader enterprise with the legal status unlimited liability. The main

affair of the business is making and selling natural paper from recycled materials. Products will

also be developed from the paper made and other skills such as graphics will be incorporated.

OBJECTIVES OF THE BUSINESS

To provide quality products to keep customers happy and coming back.

To make a profit of 20% in the first two years.

To increase the business market share in the first five years.

To produce environmentally friendly products.

To help the local economy by lowering its import bill on commercially produced paper.

MISSION STATEMENT

To create a sustainable business by producing a unique paper for every customer using

environmentally friendly materials. We aim to keep our customers happy and satisfied as we

exhibit our talents to the outside world.

JUSTIFICATION OF LOCATION

Chic Creativity will be located in Anse Ger, Desruisseaux next to the Anse Ger Rural Service

Centre. Three reasons for this location are:

Availability of raw materials: Since the business main raw material will be agriculture

based e.g. banana stalk, it will be close to the source.

Availability of land: There is the availability of sufficient land, at an economically

viable price.

Easy transport access: The business will be about five minutes away from the main

road which saves distribution cost and movement of raw materials. Also there is easy

access of the business by customers.

ROLES OF THE ENTREPRENEUR

An entrepreneur is a person in charge of constituting and governing a new business or process or

act of managing a business. This person takes responsibility for all risks incorporated in running

a business. The entrepreneur at Chic Creativity will be:

Inventing and commercialising new goods and services: This entails looking for other

raw materials and recycled items that can be used and incorporated in the paper

production and incorporating new services such as making arrangements for tours for

tourists and people who wish to view the paper making process, thus creating

advertisement for the business and the country.

Looking for ways to improve the production of goods and services: This would entail

looking for machines which will quicken and better the production of paper, as well as

other services maybe eventually implementing delivery services.

Planning, developing and marketing ideas: This entails planning and developing new

ideas for the business like the delivery services.

USE OF TECHNOLOGY

Chic Creativity will be using the following forms of technology:

The Hollander Beater: The main equipment needed in the production of paper is the

Hollander Beater. It replaces the stamp mill used in commercial paper making, which

takes eight days to prepare the pulp, whereas the Hollander Beater takes one day. It also

creates longer, hydrated paper fibre. This would help enhance the efficiency of the

business as more paper will be produced quicker and stronger.

Online Ordering: It will be quicker and easier for customers. In a world where technology

is becoming very dominant, the business would fit in perfectly with this technological

factor as customers are more technology literate, thus attracting customers regionally and

internationally who just have to use the internet to order.

POTENTIAL FOR GROWTH

INTERNALLY

The business can experience internal growth by increasing its level of sales through better use of

assets. A Hollander Beater would allow the business to save money by making bulk purchase

since this machine allows a greater amount of raw material at one time. Also, profits can be

reinvested in the business to buy more equipment and employ more workers.

EXTERNALLY

Internal growth must be monitored to ensure assets are not strained beyond their capabilities.

External growth strategies can be used when there is no more room for internal growth, such as a

merger or an alliance with a similar business in order to share resources and sales. Therefore, in

the next ten years after commencement of the business, the business will seek a loan from the

credit union to open a new branch in another community to service more customers.

SELECTION OF APPROPRIATE LABOUR

Chic Creativity will be using labour intensive production as its most appropriate form of labour

because eight persons will be employed. This type of labour is necessary because it requires

human effort and skills to actually make the paper even with the use of machines to prepare the

pulp.

POSITION

NUMBER OF

WORKERS DUTIES QUALIFICATIONS

LEVEL OF

SKILLS

Production Workers

6Making paper and other products.

Basic primary school education.

Skilled

Manager 1Management functions.

Post Grad diploma in gender and development studies.

Project management certificate.

Certificate in Agro-Eco Business Development.

Skilled

Secretary 1Processing orders and handling enquires from potential customers.

Diploma in Business Studies.

Diploma in Office Administration

Good literacy skills.

Basic computer skills

Skilled

SOURCES OF FIXED AND WORKING CAPITAL

FIXED CAPITAL

In order to finance the business, capital is needed to purchase anything of value that provides

services to the business. Capital of $80,000 will be introduced into the business. The source of

financing will be from loans from banks and credit unions. This money will be used to purchase

fixed assets. Fixed capital at Chic Creativity will include machinery, computers, and vehicles.

Some of these will be bought on hire purchase.

WORKING CAPITAL

The money that remains after fixed assets are purchased will be used as working capital.

Working capital refers to the short term assets that the business will have available to operate the

business on a day to day basis. Personal savings of the owner will also be used as working

capital. After business operation the money and profits made will be re invested in the business

as working capital.

TYPES OF PRODUCTION

Chic Creativity will be involved in secondary production. Secondary production deals with the

manufacturing and construction industries. The business will be using raw materials obtained

from extracting industry and will change them into finished products such as paper.

LEVEL OF PRODUCTION

Chic Creativity will operate within the domestic level of production since quantity produced will

be sold and consumed in the country of production. Chic Creativity is looking forward to

catering to at least five persons on a daily basis given that at least the order for one day is about

one thousand five hundred sheets of paper. This production will involve no exports or imports

but will be used to satisfy domestic needs.

QUALITY CONTROL MEASURES

Quality control measures are these activities a business undertake to ensure the company’s

product meet the standard the firm has set, for the maximum legal requirement. Two quality

control measures the business should adhere to are:

Teamwork: Members of the production team will watch the quality of work of the other

member and correct them if they are doing something wrong. They will also take turns

doing the work of others. They are also able to take up duty of a colleague in one’s

absence.

Statistical Process Control: This is applied in order to monitor and control the process.

Monitoring and controlling the process ensures that it operates to its full potential. A

machine operator or employees will check that the machines are in proper working

conditions prior to new working shifts.

LINKAGES

Chic Creativity will have a backward linkage. This is because the output of another business

or industry will be the input or raw materials at chic Creativity. The business will use

shredded paper from another business and also banana stalk from farmers and old thick

clothing material from different suppliers. Linkages will not only encourage growth and

development but also the business in particular. The business will benefit greatly if raw

materials are not imported but is obtained locally, hence, the business will not have to pay for

importation. As a result the business will have more profits to work with.

Diagram Depicting Linkage Mentioned Above

(Backward Linkage)

GOVERNMENT REGULATIONS

Banana stalk (From local farmers)

Old jeans and clothes

(From different local suppliers)

Chic Creativity

(Paper Producer)

Shredded paper (From local businesses)

Government regulations will have a great impact on the expenses and operation of the business

such as legality or operations, location etc. a business is not considered to be legal unless it is

registered with the relevant government agencies. Government agencies also help the business to

provide better quality products by ensuring certain standards are adhered to.

Regulations related to Chic Creativity are:

1. The business must pay a portion of its profit to the government as taxes.

2. Business place should be inspected by safety officials.

Not abiding to these regulations, the business cab be charged or face a possible law suit if

anything happens as a result of not having the business inspected by safety officials.

ETHICAL ISSUES

The word ‘ethics’ refers to things considered to be right or wrong. The business has a social

responsibility to the population it will serve and also has to make ethical decisions in the way

business should be conducted.

One ethical issue the business may face is:

The disposal of waste products after production: After production the waste products or material

must be disposed or appropriately to prevent pollution. Not adhering to proper disposal is

breaking the law since government regulations are put in place to protect the environment. If the

business is caught disposing its garbage inappropriately, the business can be charged a large sum

of money. This can impact on the business negatively in that profit will decrease as it will be

used to pay the debt, hence the business will have less capital to work with.