Start up a business

 What is startup?
A startup is a new business that's usually started by an entrepreneur. Startups are often associated with risk, but
they can also be rewarding if successful. Startups often aim to bring a unique product or service to the market and
may operate in various industries, including technology, healthcare, finance, and more. These businesses are known
for their agility, adaptability, and a focus on growth.

Preliminary Steps of a Startup

3 steps in startup a business

Part One: Evaluating the Business

1. Deciding on a Business: Identify your passion, skills, and market opportunities, decide whether you really want to
be in a business, what kind of business and where, full-time or moonlight.

2. The Business Plan: A business plan is written document for business to start up which should have vision
statement, people and business profile. A well-structured business plan serves as a roadmap for your startup

3. Home-Based Business: In this stage, you have to review the do’s and don’ts of operating a home based business
and will state the case for not quitting your job at all.

Part Two: Before You Start

4. Financing the Business: You should locate, negotiate and maintain the source of money to get you started and
help you expand your business. (source of money example)

5. Business Organization: Choose a legal structure for your business, such as sole proprietorship,

partnership, LLC, or corporation. Also what professional advisor to select.

6. Licenses and Permits: Choose a stable name for your business and find out what license and permit you need and
how to get it.

7. Business Insurance: Consider various types of business insurance to protect your startup from potential risks,
including liability insurance, property insurance, and business interruption insurance, worker and life insurance.

8. Communication Tools: Communication can be formal or informal, external or internal, horizontal or vertical,
written or oral. Set up essential communication tools for your business, such as email, cell phones, online chat box,
video conference, fax etc.
9. Buying a Business or Franchise: Have to learn how to make objective decision while purchasing a franchise and
how to evaluate how much you should pay. Also have to consider the pro’s and con’s.

Part Three: Operating Pitfalls

10. Location and Leasing: Learn how to create your own site model and the important aspects of a lease agreement.

11. Accounting and Cash Flow: Need to learn how to keep score (accounts) and how to maintain cash in your bank
account (cash flow control).

12. E-commerce: Is the fastest growing segment of our economy. It allows even the smallest business to reach a
global audience with its product or message with minimal cost

13. Opening and Marketing: Plan a strong opening and marketing campaign to create awareness

about your startup. Utilize both traditional and digital marketing channels.

14. Managing Employees: It recommend to maintain on going access to a labor lawyer to keep the current on labor
matters including hiring and firing employees.
15. Expanding and Handling Problems: A growing business needs to have appropriate expansion policies in place,
plans to motive key employees and know how in handling common business problems.

 Top t10 do’s and don’ts for startup a business

Do’s:
1. Live frugally, save money for operating
2. Work in the same business first for someone to learn your business
3. Learn the benefit of a moonlight business
4. Learn the advantage of a family business
5. Measure skill, compete against competition
6. Contract with low cost supplier
7. Before starting test market of your product or service
8. Make a “For” and “Against” list for your business
9. Talk to lots of people for advice
10. Make comparative analysis of all opportunities.
Don’ts:
1. Don’t quit job before completing startup plans
2. Don’t operate a business in the field you don’t enjoy
3. Don’t risk all family assets. Limit your liabilities.
4. Don’t compete with your employer in a moonlight business
5. Don’t be in a hurry to select business
6. Don’t select a business with too high risk
7. Don’t operate a business with the lowest price to succeed
8. Don’t neglect to learn the negative aspect of your business
9. Don’t let your self-confidence overweigh your careful diligence
10. Don’t promise conceptual high promise.

 Business Road map

A business road map is a living document and a planning tool that outlines a company's goals and its
strategy for achieving them. It has a less formalized structure than a business plan, and might take the
form of a graphic, a website, a flowchart or a traditional document. Its emphasis is on activities and
decision-making, rather than on financial projections. When used effectively the road map not only helps
with planning for the future, but also becomes a tool used to measure progress and to train employees on
making decisions that are in line with company strategy.
For example, launching a new product may involve research, design, development, and marketing phases.
The roadmap provides a clear, organized overview, including dependencies, required resources, and
performance metrics, guiding the team through each stage of the project. Regular communication and
updates ensure alignment and progress tracking. Management should review the roadmap periodically
perhaps monthly or quarterly in order to assess the comapany’s progress against its goals.
To start a business, it is wise to set the road map. Road map is the steps that one needs to identify;
charting the steps and sequences that are expected to follow to reach the target and objectives with
efficiency and effectiveness, the road map in general may be as follows:
Phase 1: Find and develop your business ides, build a solid foundation
1. Direction: Choose your business topic and define your audience
2. Connection: Leverage community tools for support, friendship and accountability
3. Planning: Define the problem and create a smart plan for your business
4. Set Up: Name, establish and launch your business
Phase 2: Launch your business, earn through to support your self
5. Audience: Choose an audience channel and grow your audience base
6. Product: Plan and build your first small product to test your audience's interest
7. Money: Launch your product and grow revenue to support yourself
Phase 3: Optimize and grow to increased profitability and sustainability
8. Growth: A growth cycle to increase reach and revenue
9. Scale: Rapidly accelerate your business growth, make it last

 How to start small business

All it takes to start a small business is:
1.Experience
2.Capital
3.Location
4.Inventory Management
5.Customers Demographics
6.Competiton
7.Record Keeping
8.Condition of business (if purchased)

Problems of small business are:

1. Lack of experience
2. Lack of management skills
3.Inadequate finance
4.Flaws in planning

 Define business plan? Why the businessman prepares a business plan?

Business plan is a formal, written expression of the entrepreneur’s vision for converting ideas into
profitable, going business. It is the roadmap for a successful enterprise. The primary value in learning how
to write a business plan will be a written outline that evaluates all aspect of economic viability of your
business venture including description and analysis of your business prospect.
It is essential for any size of business.

A business plan is needed for many reasons, such as

1. To define and focus objective using proper information and analysis.
2. To use it as selling tools and dealing with important relationship such as lender and investors
3. To use the plan to solicit opinions and advice from the people in your intended field of business.
4. Business plan uncover omission and weaknesses

Some factors that are needed to be avoid in business plans:

1. Long term plan. Use only short term

2. Avoid optimism as plans can’t correctly anticipate how much money and time will be required
3. Always use simple language for better understanding

Components of a business plan

1. Executive summary
2. Mission statement of business
3. Company background
4. Description of product or service
5. Market analysis and strategy
6. Competitor analysis
7. SWOT analysis
8. Operations
9. Financial planning
10. Timeline

 Difference between business plan and business roadmap

Aspect Business Plan Business Roadmap

Definition A formal, written document A living document or tool

outlining the entrepreneur’s outlining a company’s goals
vision, goals, and strategy for and the steps to achieve
success. them.

Purpose Evaluates the economic viability Focuses on activities,

of a business venture. decision-making, and
achieving specific goals.

Focus Financial viability, market Activities, resource planning,

analysis, and business strategy. decision-making, and
progress tracking.

Nature Static document; updated Dynamic document; updated

occasionally. regularly (e.g., monthly or
quarterly).

Components Executive summary, mission Phases of business

statement, company background, development: foundation,
product/service description, launch, optimization, and
market and competitor analysis, scaling.
SWOT analysis, operations,
financial planning, timeline.

Key Benefits - Defines and focuses objectives. - Provides clear guidance for
- Serves as a selling tool for teams.
investors and lenders. - Tracks progress and ensures
- Uncovers weaknesses and alignment.
omissions.

Best Use Cases Required when seeking funding, Ideal for internal team
partnerships, or defining long- alignment, project
term viability. management, and short- to
medium-term goal tracking.

Avoidances - Long-term plans (focus on short- - Neglecting regular updates

term). and communication.

- Optimism without realistic data.

- Overly complex language.

Key Characteristics - Comprehensive analysis of - Emphasizes tasks,

financials and market conditions. dependencies, resources,
and performance metrics.

Examples of Usage Used to secure loans, attract Guides activities like product
investors, or plan for expansion. launches, marketing
campaigns, and operational
efficiency.

Update Frequency Occasional, as needed. Regularly, often monthly or

quarterly.
Starting Point Begins with a structured outline Begins with identifying steps
evaluating economic viability. and sequences to reach
objectives efficiently.

Source of finance
Act governing business in BD

Functional areas of business

1. Define functional areas of business

> Functional areas can be described as the method of dividing an organization into different segments
where the respective segments that are thus divided will serve as fully functional units that perform stated
functions.
Such areas are: accounting, marketing, manufacturing, financing, administrations etc.
each of these tasks is described as being a function of business

2. Purpose of functional areas

> The main purpose is all important business activities are carried out efficiently. Specific areas will be
responsible for supporting specific types of aim and objective such as:
1. Marketing and sales involves in achieving target related to developing new market and increase sales
2.HR in staff training activity
3. Finance in low cost and improve profitability.

3. Areas in business
> A. sales and marketing: Selling or making sales consists of interpersonal interaction the one on one
meeting, telephone calls, networking that you engage is with prospects and customers./
B. Finance and accounting: BY properly accounting for your company’s income and expenses, you can
manage the flow of money and thereby direct the course of your business
C. HR: responsibilities includes payroll, benefits, hiring, firing and keeping up to date with state and federal
tax law.
D. R&D: Involves researching your market and your customer needs and developing new and improved
products and services to fit these needs.
E. Production and Operations: (POM) Is about the transformation of production and operational inputs
that , when distributed , meet the needs of customers. Its called the conversion process.
F. Customers services in business: Service provided to customers before, during and after purchasing and
using food and services.
G. IT and support: in which a business organization is able to use information technology effectively to
achieve business objectives.

4. The administration function

> Administration is support function required by all businesses and does not mean only keeping files. In a
small business, an administrator is the “jack of all trades”. And in a larger business firm administration may
be carried out in every department.
the works of this function
a) collecting, distributing, dispatching mail
b) storing and retrieving papers and records
c) organizing meeting and the documents
d) researching information
e) sending and receiving messages
f) making arrangements for visitors
g) making travel arrangements
h) purchasing supplies of office
i) making arrangements for events

5. Difference between administration and management

>

Administration Management

Administration thinks Management does

Administration plans executes

Administration performs at top level Performs at top,mid,low level

Mental function Physical function

They are planners They are doers and actors

Administration before management Management comes after Administration

6. Relationship between different functional areas

> Some of the reasons why departmental links are essential are shown in the table below:

Functional areas Links

Sales and production -Sales must know production schedule and agree
delivery dates of order.
-Production must tell sales about production
problems.

Sales and finance - Finance must know about customer eunquires to

check their credit rating before sales are made.
-Finance will be involved when discounts are
agreed or when there are problems with customer
payments.

Distribution and finance -Finance must know when goods have been
dispatched so that invoices can be sent out.

Distribution and sales -Sales must be able to inform customers when

deliveries are due and be aware of any problems.
Sales and marketing -Must liaise over sales promotions and adverts so
that sales staff can expect/handle enquiries.

Finance and all other departments Finance monitors departmental spending and the
achievement of financial targets.

Human resources and finance Will liaise over salary increases and bonuses.

Customers service, sales and marketing Customer Service must pass on customer feedback
that could affect future product developments or
future sales.

R&D and production Liaise over new product developments and

methods of production.

Human resources and other functional areas HR handles job vacancies, promotion
opportunities, training courses and CPD
for all areas/staff

Finance function
HR function
Marketing function

Forms of business

Definition of business organization:

> To achieve an objective we need some economic factor and proper co-ordinance of all these factors is
called business organization.
forms of business organizations are: sole, partnership, public ltd company, private ltd company, state
enterprise, cooperative etc

Factors influencing choosing a business

> The factors are
a.nature of business direct service for sole. If requires pooling of skills and fund then partnership.
Manufacturing organization for company
b. Size: Small and medium for sole and partnership. Large for company
C. Level of control: Direct control for sole. Others separate controls
d. Amount of capital
e. volume of risk
f. Comparative tax risks:

1. SOLE PROPRIETORSHIPS

A sole proprietorship is a business owned and managed by one individual. The capital (money) needed to
start and operate the business is normally provided by the owner through personal wealth or borrowed
money. The sole proprietor is usually an active manager, working in the shop every day. He or she controls
the operations, supervises the employees, and makes the decisions. The managerial ability of the owner
usually accounts for the success or failure of the business. Example of this kind of business a small service
or retail operation, such as a roadside produce stand, hardware store, bakery, or restaurant.
Advantages of a Sole Proprietorship
> a. Ease of starting: Sole proprietorship is the easiest way to start a business. It involves a minimum
number of problems.
b. Control: owner’s decision is the final decision
c. Sole participation in profits and losses: one person to own a corporation, ownership of profits and losses
in such cases compares to that in the sole proprietorship.
d. Use of owner’s abilities: Full credit for success or blame for failure belongs to the owner.
e. Tax breaks: A major advantage of the proprietorship is that the business pays no income tax. A
corporation pays taxes on profits; its owners, the shareholders, also pay taxes on their dividends.
f. Secrecy: No information need to make available for public.
g. Ease of dissolving: There are no complications.

Disadvantages of a Sole Proprietorship

> a. Unlimited liability: The law provides that owner’s total wealth may be used to satisfy the claims of the
company. This is called unlimited liability.
b. Difficulty in raising capital: owner’s investment in the company is limited to personal wealth.
c. Limitations in managerial ability: many of skills can be bought by hiring staff.
d. Lack of stability: Death, illness, bankruptcy, or retirement of the owner terminates the proprietorship.
e. Demands on time: Owners often work 60 to 80 hours a week, especially when the business is new.
f. Difficulty in hiring and keeping high-achievement employees: Workers with their own visions and goals
and a high drive to succeed often have to quit the one-person business to find opportunities for personal
growth.

2. Partnership

A business owned by two or more people. A partnership can be based on a written contract or a voluntary
and legal oral agreement.

Types off Partnerships

> General Partnership: A partnership in which at least one partner has unlimited liability; a general partner has
authority to act and make binding decisions as an owner. With the authority to act as an owner, each general
partner can engage the partnership in binding agreements. Unless a partnership agreement prevents a general
partner from making such agreements, the partnership is responsible for all actions of each owner.

Limited Partnership: A partnership with at least one general partner, and one or more limited partners who are
liable for loss only up to the amount of their investment. A limited partner has limited liability, being liable for loss
only up to the amount of capital invested.

Master Limited Partnership (MLP) A partnership that sells units traded on a recognized stock exchange

Joint venture: Sometimes a number of individuals and businesses join to¬ gether in order to accomplish a specific
purpose or objective or to complete a single transaction.

The Partnership Contract

Sound business practice dictates that a partnership agreement be written and signed, although that is not a legal
requirement. Such a contractual agreement is called articles of partnership/ Partnership deed. Written articles of
partnership can prevent or lessen misunderstandings at a later date. Oral partnership agreements, though quite
legal, tend to be hard to recreate and are open to misunderstandings. Written articles of partnership provide proof
of an agreement.
A written partnership agreement includes the following main features:
• Name of the business partnership.
• Type of business.
• Location of the business.
• Expected life of the partnership.
• Names of the partners and the amount of each one’s investment.
• Procedures for distributing profits and covering losses.
• Amounts that partners will withdraw for services.
• Procedure for withdrawal of funds.
• Duties of each partner.
• Procedures for dissolving the partnership.

Advantages of a Partnership
a. More capital: A person with a good idea but little capital can look for a partner with the capital and/or credit
standing to develop and market the idea.
b. Combined managerial skills: In a partnership, people with different talents and skills may join together.
c. Ease of starting: Because it involves a private contractual arrangement, a partnership is fairly easy to start. It is
nearly as free from government regulation as a sole proprietorship.
d. Clear legal status: Over the years, legal precedents for partnerships have been established through court cases.
The questions of rights, responsibilities, liabilities, and partner duties have been covered. Thus the legal status of the
partnership is clearly understood.
e. Tax advantages: The partnership has some potential tax advantages over a corporation. In a partnership, as in a
sole proprietorship, the owners pay taxes on their business earnings. But the partnership, as a business, does not
pay income tax

Disadvantages of a Partnership
a. Unlimited liability: Each general partner is liable for a partnership’s debts.
b. Potential disagreements: Power and authority are divided, and the partners will not always agree with each other.
As a result, poor decisions may be made. Also, decision making becomes more timeconsuming.
c. Investment withdrawal difficulty: A person who invests money in a partnership may have a hard time withdrawing
the investment
d. Limited capital availability: The amount of capital a partnership can raise depends on the personal wealth of the
partners and their credit ratings. It also depends on how much they are willing to invest in the partnership.
e. Instability If a partner dies or withdraws from the business, the partnership is dissolved.

There are other business form but only corporation is more highlighted
Corporation A business that is a legal entity separate from its owners.

Types of partners
a. Active partner: Active in management
b. sleeping partner: dormant. Contribute share and shares profits and lose. Doesn’t work
c. Nominal partner: have no interest but share his name or reputation and liable to outsider
d. Holding out partner: person who is hold out to other that he is a partner. Debt to third party
e. partner is profits: only shares profit but not liable to losses. Liable to third party
f.minor as partner:with the consent of all partner when a minor join the company.

Cooperative society
> A business activity without having any profit. The main purpose of this business is the benefits of its members.

Documents and Facilitating agencies of business

Documents used in business

Trade license
factory inspection license
VAT
TIN
Copyrights

Facilitating agencies of business

Chamber of commerce and industries

> is form of business network. A local organization of businesses whose goal is to add the interest of
businesses. Business owners in towns and cities from local societies to advocate on behalf of the business
community.
5 chamber model> i) local and regional chambers ii) state chamber, iii) compulsory/public law chambers,
iv) continental/private law chamber, v) multilateral chambers
in bd there are 2 chambers Dhaka chamber of commerce & industries DCCI and Chittagong chamber if
commerce and industries CCCI
Trade association
TCB
BOI
EPB
BSCIC
CSE
BEPZA
EPZ
C&F
Port authority
BGMEA

Trade practice

1. Define trade policy

> The regulations and policies that determine how a country conducts trade with other countries is called
trade policy. It uses tariffs and barriers such as what good can be imported or exported, which country are
allowed to. Trade policy involves various complex action such as elimination of quantitative restrictions or
the reduction of tariffs.

2. Objectives of trade policy

> a. to appreciate trade with other nation
b. to protect domestic market
c. to increase export to expand domestic market
d. to decrease import to protect infant and key industries and to save foreign exchange
e. to encourage the import of capital goods for the development of economy in the country
f. to restrict import of products that create unfavorable balance of payment
g. to assist or prevent import or export of goods for achieving desired rate of exchange
h. to enter into trade agreements with foreign countries to stabilize foreign trade

3. Trade agreements and arrangements

> A trade agreement is a legally binding agreement between governments that sets rules for trade in goods
and services. The trade agreements done by Bangladesh are.
a. SAFTA- south Asian free trade area
b. APTA- asia-pacific trade agreement
c. BIMSTEC
d. member of WTO as LCD( Least developed country)

4. Industrial policy
> In order to accelerate the pace of industrialization in the country, The government announced the
national industrial policy-2010. Objectives of these policies included generation of productive employment,
mainstreaming women in the industrialization process and poverty alleviation.
5. Competition policy
> The theory of competition policy includes measures that remove restrictions upon and barriers to
competitive transaction within national market

International business

1. Definition of Globalizations
> It means growing inter-dependence over the countries. Globalization refers to the increasing integration
of economics around the world, particularly through trade and finance flows.
it has been influenced by technological developments, increase in incomes, liberalization of cross-border
movements.
Globalization can be broken into 2 forms:
a) globalization of market: refers to integrating separate national markets into one marketplace that is
global market place. For reaching the different types of customers with different taste around the word
market globalization is essential.
b) globalization of production: refers to the inclination of firms sourcing of goods and services from
location around the globe for intriguing benefit of national variations in the cost and quality of factors of
production.

2. International business
> IB refers to a board series of activities involved in conducting business across national boundaries.
International business gives promise of large scale of profits if the organization can run the business
successfully. It helps to find out the best raw materials in cheap price, available labor with few wages,
create the customer worldwide, create new markets, can innovate new idea and new product and so on.

3. Objectives of international business

> > a.Higher rate of profit: When domestic market don’t promise higher rate organization seek to
international business
b.expanding production capacity: If local production is more than enough, organizations try to expand their
business beyond the nation
c.Burtal competition in home country: if there is enough competition on the country, weak organization
search for new market in foreign.
d.too little home market
e.political instability: if the political environment is unstable
f. technological advancement:
g.high cost transportation
h.Nearness of raw metarials
i.liberatization
j.to increase the market share
k.traffi and import quota: U
l.Comptetent human resources
4. Importance/advantages of international business
> a. optimum and proper uses of world resources: IB make available for the stream of raw materials
natural, human and non human resources from the country where they are in excess supply to those
country where they are in short.
b.Open market: it opens the door to provide quality services and goods in the global market for the global
customer.
c. economic growth of the world at large: there is national boundaries for the IB
d. Increasing standard of life: by analyzing comparative advantage theory, the business organization in the
international sector can increase the living standard of people.
e. Increased socio-economic welfare: Every international firm has CSR.
f.provide opportuinity for domestic business:
g. reduce risk:
h.large scale of economy
i.cultural transformation
5. Difference between international and domestic business
> There are similarities in both business such as:
a. generating profits, b.building corporate image ,3. Brand building, 4.capturing market, 5.forming
emoplyee opportunity
Despite all these similarities there are also differences
these are:
6. The challenges or barriers of international business
> A. Management myopia: the business has to take the opportunity knocking the door. Successful global
business depends on the farsightedness of the people at the top level management.
B. Political obstacle :
i. incompetent governance: corruption, incompetence, lack of appropriate institution
ii.lack of civil society: Not all the country is civilized
iii. Political populism: To get support of the mass of the populace by rising expectations of greater benefits
from the government is the notable objective of populism.
iv. Inadequate community of interest: A community of interest is required for unity of any nation
v.power and security: The threats of terrorism are one of the important obstacle in IB.
C. National Control: Every country protects local enterprises by controlling market access and entry in
both low and high tech industries. They levy trade barriers like tax which affect global integration.
D. High investment required
E. Economic obstables:
i)Inadequate distribution of benefits and burdans
ii) Inadequate date,info and transparency
iii) restriction imposed by regional associations
iv) Increase risk
v) Inadequate infrastructure and energy
F. Social obstacles
i) Corruption in public, private and international organization
ii) ethical behavior
iii) Migration of people
iv) Fundamental values

7. Three approaches to international business management

> A. Ethnocentric approach: refers to a conviction that one’s own cultural group is superior to others. A
tendency to use management style practiced in the business of home country. Risk with bad result
B. Polycentric approach: A focus on building a workforce of locals based on the belief that locals best know
the regions culture and language and workstyle /
C. Geocentric approach: Business challengers are viewed as universal, no matter where business is being
conducted. Highly qualified individuals, regardless of country of origin are place in the management. They
apply business knowledge to solve problems

Business ethics

CSR
1. Define CSR
> refers to a company's commitment to operate in an ethical and sustainable manner by considering the
social, environmental, and economic impacts of its business activities. CSR involves going beyond profit-
making to contribute positively to society, the environment, and various stakeholders, including
employees, customers, communities, and shareholders.
What does CSR involve?

 Integrating social and environmental concerns: Companies consider the impact of their actions on
society and the environment when making decisions

 Following the law: Companies comply with laws and regulations

 Adopting ethical and sustainable practices: Companies voluntarily adopt practices that are
beneficial to society and the environment

 Giving back to the community: Companies donate to charitable causes, match contributions, and
encourage volunteerism

Why is CSR important?

 CSR can help companies build trust with their stakeholders, customers, and employees

 CSR can help companies reduce their negative impact on people, the environment, and the
economy

 CSR can help companies create long-term value for their shareholders

Business Ethics
> Business ethics refers to the set of moral principles and values that guide a company's decision-making
and behavior, ensuring that its actions are considered ethical and socially responsible, going beyond
legal requirements to treat customers, employees, and stakeholders fairly in all business
practices; essentially, it's about doing what is morally right in the business world.

Key points about business ethics:

 Focus on moral principles: Business ethics are based on established ethical principles like
honesty, integrity, fairness, and accountability.

 Applies to all aspects of business: It encompasses everything from product quality and marketing
to employee treatment and environmental impact.

 Beyond legal compliance: While adhering to laws is important, business ethics often go further by
considering the broader societal impact of decisions.

 Benefits for companies: Practicing good business ethics can lead to improved reputation,
customer loyalty, employee morale, and overall sustainability

Contemporary issues in business

1. Social Business
> Is a company created for social benefit rather than profit. First defined by prof Muhammad yunus. So its
known as YSB. Its sole purpose is to create a world without poverty. This new kind of capitalism serves
humanity’s most pressing needs.
YSB is a non-loss, non-dividend company with social objective. All the net profit remains in the company
for further expansion of business.
key to success of this approach are education, institution and market place.
YSB is a cause driven business. In this business an owner gradually recoup the money invested but cant
take more than dividend.
2. Seven principles of YSB
> a. objective is not profit maximization but to overcome poverty and one or more problems which
threaten people and society.
b. Financial and economic sustainability
c. investor get back their invested money but not beyond that
d. when investment are paid the profit with the company for expansion
e.work force get market wage with better working condition
f. do it with joy
3. Green/sustainable business
> is an enterprise to be that has minimal negative impact on the global or local environment, community,
society or economy a business that strives to meet the triple line. Business is described as green if it
matches the following four criteria:
i. it incorporates principles of sustainability into each of its business decisions.
ii. Supplies product and service that replace demand for no green product
iii. It is greener than traditional competition
iv. It has made and enduring commitment to environmental principles in its business operations.
overall any organization that participates in environmentally friendly or green activities is a green business.
4.E-Business
> Defined as the application of information and communication technologies (ICT) in support of all the
activities of business. E-commerce focuses on the use of ICT to enable the external activities and
relationship of the business with individuals, groups and other business.
it is defined as the conduct of industry, trade and commerce using computer network. EB first introduced
by IBM’s marketing team in1996. More private and secure networking for better management is the key to
EB.
e-com is a subset of an overall EB strategy.
5. Virtual business
> Employs electronic means to business transection opposite to traditional business where they use face to
face transection with physical currency.
Some virtual business operate solely virtual world.
VB has 2 sectors:
i. Virtual corporation: VC means a groups of people can assemble online and enter into an agreement to
work together toward for profit goal without physical presence
ii. Virtual enterprise: is a network of independent companies suppliers, customers, comptetitors, linked by
information technology to share skills, costs and access to one another’s markets.
6. Boundary less organization
> An association where management has largely succeeded in breaking down barriers between internal
levels, job functions and departments, as well as reducing external barriers between the association and
those with who it does business.
Few characteristics of BLG
a. eliminate the chain of command, have limitless span of control and replaces departments with
empowered teams.
b. relies heavily on information technology thus called T-form oragnisation
c. remove vertical boundaries, management flattens the hierarchy
d. creates horizontal boundaries
e. breaks down barriers to external constituencies and barriers created by geography
7. Globalization and development
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10. PPP
> Is a govt service pr private business venture which is funded and operated through a partnership of govt
and one or more private sector companies. It is also known as PPP,P3 .
the government of bd issued the policy and strategy for ppp to facilitate the development of core sector
public infrastructure and services vital for the people of bd.
The govt realies that it alone cant provide huge amount of resources but will team up with private sector
investors to invest alongside govt.