Entrepreneurship. Small business

МИНИСТЕРСТВО ОБРАЗОВАНИЯ РЕСПУБЛИКИ БЕЛАРУСЬ

УО «Белорусский государственный экономический университет»

Т.Ф. Солонович

 

 

ENTREPRENEURSHIP. SMALL BUSINESS

ПРЕДПРИНИМАТЕЛЬСТВО.

МАЛЫЙ БИЗНЕС

 

 

Электронное учебно-методическое пособие

по дисциплине «Иностранный язык (английский)»

 

 

Минск 2009

Рецензент: старший преподаватель кафедры теории и практики английской речи БГЭУ Т.Г. Корепанова

 

 

Рекомендовано кафедрой теории и практики английской речи БГЭУ

 

 

Солонович Т.Ф.

Предпринимательство. Мадый Бизнес = Entrepreneurship. Small Business: Электронное учеб.-метод. пособие / Т.Ф. Солонович. – Минск: БГЭУ, 2009. – 39 c.

 

Учебно-методическое пособие содержит лексический материал, тексты для чтения и комплекс упражнений и заданий для формирования англоязычных коммуникативных навыков студентов в рамках актуальной, профессионально значимой темы «Предпринимательство. Малый бизнес». Предназначена для студентов БГЭУ дневной формы обучения.

 

 

 

Entrepreneurship. Small Business

GETTING STARTED

Discuss the following issues in small groups and then report your findings:

- Would you like to be a business owner?

- What personal characteristics should a person possess to be a success in business?

- All big businesses used to be once small. Give the names of some companies that are locally or world famous; recall some facts from their success stories.

- What kind of environment for small business is there in your country?

 

USEFUL VOCABULARY

Make sure you know the following words and word combinations.

business n (U/C) syn venture/enterprise/ company start/set up a business own a, v owner n ownership entrepreneur n entrepreneurship n entrepreneurial a reward n, v rewarding a challenging a risk n, v risky a take/assume/recognize/ minimize/manage risk(s) risk-taker dream n pursue a dream earn a living creativity n opportunity n; syn. chance recognize opportunity

goal n syn. objective, target set/meet/achieve goals reasonable/obtainable goals willingness n strength n weakness n be aware of v awareness n familiar (with) a familiarity n success n successful a be a success succeed v syn. prosper/boom/ flourish/thrive v fail v syn be a flop/ go bust/ go bankrupt failure n

survive v assistance n syn aid n backer n syn sponsor n premises n outlet n account for v franchise n, v franchising franchiser/-or n franchisee n diversify v diversification n Idioms: be self-employed syn. be one's own boss keep one's head above water keep afloat start from scratch break even v syn to reach a break-even point/situation

 

READING

Text 1

1. Read the text and complete the outline of its contents given below; some items are suggested to you.

Small Business

Many people find the potential independence and financial rewards that can come from owning a small business very appealing. For some, owning their own business has been a lifelong dream. Many people, however, hesitate to pursue this dream because they don’t think they have enough education, experience or money – or are simply afraid they might fail. Others can’t accept the idea that they can change their lives – that people like them could ever own their own business. For still others, going into business for themselves is a financial necessity because they have lost their job and there are no other readily available ways to earn a living, or even survive.

Whatever the reason, owning your own business can be one of the most challenging, satisfying, demanding and rewarding things you do in your life. However, there are real risks and difficulties in starting any new business.

Entrepreneurs

Small business owners are also called entrepreneurs. One definition of an entrepreneur is someone who organizes, manages and assumes the risks of a business or enterprise. Other experts say an entrepreneur is a person who can “create out of nothing” a viable business.

There are a number of myths and misconceptions about what it takes to be an entrepreneur. One misconception is the people who go into business for themselves are naturally high risk-takers. Of course, there are risks in business, but real entrepreneurs aren’t gamblers who depend solely on chance to succeed.

In fact, just the opposite is true: successful entrepreneurs do everything possible to minimize the real risks associated with starting a company by studying, planning and organizing the information, people and materials they will need to succeed. They manage risk by setting reasonable and obtainable goals – then work to achieve them. In short, the successful small business owner works hard and intelligently.

Despite what many think, starting a successful small business does not always require a lot of formal education or prior management experience. Certain basic skills will be needed, plus some background in the business being contemplated. Just as important as formal education is the willingness to learn and improve the skills needed to succeed in business.

One of the biggest misconceptions about entrepreneurs is that they are only interested in making money. Entrepreneurs certainly like and respect money, but money is only a byproduct of an even bigger goal for many very successful entrepreneurs.

As one U.S. expert on entrepreneurial management observed:

Many businesses fail because their owners were only interested in money. Most really successful companies are founded by someone with an idea and a dream. Whatever money and wealth they accumulated is the result of them being willing to work night and day to make this dream a reality. If you want to be really successful, know what your dreams are before going into business.

There are also a number of common traits successful entrepreneurs share:

- a great deal of energy;

- ability to establish priorities and make decisions;

- ability to deal effectively with a wide variety of people, such as customers, employees, suppliers, possible investors and lenders;

- ability to communicate clearly and effectively;

- ability to work with numbers;

- familiarity with customers and with the products or services to be sold;

- ability to balance conflicts between business and personal goals;

- awareness of personal strengths and weaknesses.

Becoming an entrepreneur is a way of looking at the world, seeing opportunity where others see problems. It is also knowing how to use certain basic tools to achieve your goals.

 

Outline

1. Reasons for starting one's own business.

2....................................

3. Common misconceptions about entrepreneurs.

3.1..................................

3.2..................................

3.3..................................

4....................................

 

2. Read the text again and say if the following statements are true or false according to the information in the text.

1. People start their business for various reasons.

2. All the people starting their own business want to be independent.

3. Many people hesitate to set up their own business because they are afraid of failure.

4. Real entrepreneurs are like gamblers because they solely depend on chance to succeed.

5. Starting and running a successful small business requires a lot of formal education and experience.

6. Many entrepreneurs fail because they are only interested in money.

7. Ability of dealing with people and communicating effectively is an important trait of a successful entrepreneur.

 

3. Match the halves.

1. For some people owning their own business 2. Many people hesitate to start their business because 3. Real entrepreneurs aren't gamblers 4. Successful entrepreneurs do everything possible 5. Starting a successful small business requires 6. Many businesses fail because 7. Really successful companies are founded 8. A successful entrepreneur must

a. by someone with an idea and a dream. b. who depend solely on chance to succeed. c. have a great deal of energy. d. certain basic skills and some background in the business. e. their owners were only interested in money. f. to minimize the risks. g. they don't think they have enough education. h. has been a lifelong dream.

 

4. Scan through the text again searching for the English equivalents of the following collocations.

Материальное вознаграждение; мечта всей жизни; добиваться осуществления мечты (идти за мечтой); зарабатывать на жизнь; трудное, ответственное дело; жизнеспособное предприятие; мифы и заблуждения; целиком полагаться на случай; свести риск к минимуму; справиться с риском; ставить разумные, достижимые цели; образование, полученное в учебном заведении; предполагаемый бизнес; потерпеть неудачу; зарабатывать деньги; побочный продукт; воплотить мечту в жизнь; определить приоритеты; знание своих слабых и сильных сторон; достигать цели.

5. Expand on the following statements from the text.

1. People start their own business for various reasons.

2. There are a number of myths and misconceptions about entrepreneurship.

3. There are a number of common traits successful entrepreneurs share.

 

6. Summarize the contents of the text in 5-7 sentences.

Text 2

1. Read the following text and find out what 'franchising' is.

The Franchise Alternative

 

One way to avoid some of the management headaches associated with starting a business is to invest in a franchise, an approach that enables you to use a larger company’s trade name and sell its products and services in a specific territory. In exchange for this right, the franchisee pays an initial fee and often monthly royalties as well to the franchiser (the corporation).

There are three basic types of franchises. In a product franchise, the franchisee pays the franchising company for the right to sell trademarked goods, which are purchased from the franchiser and resold by the franchisee. Car dealers and gasoline stations fall into this category. In a manufacturing franchise, like a soft-drink bottling plant, the franchisee is licensed by the parent company to produce and distribute its products, using supplies purchased from the franchiser. In a business-format franchise, the franchisee buys the right to open a business using the franchiser’s name and format for doing business. The fast-food chains typify this form of franchising.

Franchises account for about one third of all retail sales in the United States and employ 7 million people.

Franchising is not a new phenomenon. It has been around since the nineteenth century, when such companies as Singer and International Harvester established dealerships throughout the world. Early in this century, Coca-Cola and General Motors, among others, used franchises to distribute or sell their products. But the real boom in franchising began in the late 1950s, with the proliferation of hotels and motels like Holiday Inn and fast-food establishments like McDonald’s and Baskin-Robbins.

The latest trend in franchising has been diversification in the variety of products and services offered. Today, franchises range from day-care centers and health clubs to dental clinics and video-tape rental outlets. By and large, most are service operations.

Advantages of Franchising

Why is franchising so popular? According to the president of the International Franchise Association, franchising has triple benefits: “The franchiser wins because he builds a strong foundation for his company. The franchisee wins because he can take advantage of the franchiser’s proven business system. And the general public benefits from the consistency of the product or service."

The biggest winners are generally the franchisers, who are able to expand their businesses through franchised outlets without depleting their own capital. Franchisers not only expand their business using other people’s money, they also receive regular income from franchisees, who pass on a percentage of their gross revenues and help pay for advertising and promotional costs.

Investing in a franchise can also be good for the franchisee, because the risk is reasonably low. Ninety-two percent of all franchise outlets make it through their fifth year. When you invest in a franchise, you know that you are getting a viable business, one that has “worked” many times before. You also have the advantage of instant name recognition and mass advertising. An independent hamburger stand can't afford a national TV advertising campaign, but McDonald’s, Burger King, and Wendy’s can. Few franchisees are able to write a check for the amount of the total investment. Most obtain a loan to cover at least part of the cost. According to the Department of Commerce, 16 percent of all franchisers provide some form of financial assistance such as low-rate loans. Another 34 percent assist the franchisees in preparing loan applications for banks, private investors, or the Small Business Administration.

Besides financial aid and advice, the franchiser gives a new franchisee training in how to run a business.

Although franchising offers many advantages, it is not the ideal vehicle for everyone. For one thing, owning a franchise is no guarantee of wealth. It may be the safest way to get into business, but it is not necessarily the cheapest. According to some analysts, it costs 10 to 30 percent more to buy a franchise than to open a business independently. And not all franchises are extremely profitable operations.

One of the most significant financial variables is the monthly payment or royalty that must be turned over to the franchiser. The fees vary widely, from nothing at all to 20 percent of sales.

Another drawback of franchises is that they allow individual operators very little independence. Franchiser can prescribe virtually every aspect of the business, down to the details of employees’ uniforms and the color of the walls. Franchisees may be required to buy the products they sell directly from the franchiser at whatever price the franchiser feels like charging. Franchisers may also make important decisions without consulting franchisees.

 

2. Match the terms with their definitions:

1. franchise 2. franchising 3. franchisee 4. franchiser	a. a corporation that grants a franchise to an individual or group
b. a person or group to whom a corporation grants an exclusive right to the use of its name in a certain territory, usually in exchange for an initial fee plus monthly royalty payments
c. a formal agreement for someone to sell a company's products or services in a particular place, in exchange for a payment or part of the profits
d. a business arrangement whereby an individual obtains right from a larger company to sell a well-known product or service

 

3. Find in the text the English equivalents for the following Russian terms:

Франчайзинг; франшиза; франчайзер (франшизодатель); франчайзи (франшизополучатель); франчайзинг товара; производственный франчайзинг; франчайзинг организации бизнеса (формата бизнеса); диверсификация; агенство, представительство (фирмы); финансовая переменная; торговая точка, работающая на основе франчайзинга.

 

5. Read the text again picking out the advantages and disadvantages of franchising for a franchiser and a franchisee, list them in the following chart.

Advantages	Disadvantages
for a franchiser	for a franchisee	for a franchiser	for a franchisee

 

6. Answer the following questions on the contents of the text.

1. Why is franchising said to help avoid some problems associated with starting a business?

2. What are the two parties in franchising?

3. How many types of franchises are defined in the text?

4. What type of franchise is used when a franchisee makes and distributes the products licensed by the parent company?

5. Is franchising a new phenomenon? Since when has it been known?

6. What have been the recent trends in franchising?

7. Why does the franchiser win by selling a franchise?

8. Is buying a franchise a guarantee of success and profit for a franchisee?

9. What is often more costly – buying a franchise or opening a business independently?

10. Who has more freedom in business – franchisees or independent business operators?

7. Give a gist of the contents of the text.

Text 3

Complete the questionnaire below and analyze the results using the directions given after it. The language of the questionnaire is rather informal and abounds in phrasal verbs; to cope with this difficulty you may first do Activities11-12 from the Language section.

 

Text 4

Text 5

SELF-EMPLOYMENT

1. Before you read the text discuss the following questions with your partners:

1. What do you understand by self-employment?

2. What advantages might there be in self-employment?

3. What disadvantages might there be?

2. Make sure you know the following words and phrases.

off the beaten track - в стороне от оживленных мест, дорог

afford sth or doing sth – позволить себе что-л.

go from strength to strength – библ. приходить от силы в силу; постоянно расти, улучшаться

touch and go (attr.) – рискованный, критический, опасный

Catch 22 – ловушка 22 – взаимопротиворечивые условия; положение, из которого трудно выйти; бюрократические препоны на пути к цели (выражение из одноименного романа американского писателя Дж.Хеллера (1961)

financial track record – кредитная история

order/buy on credit – заказывать/покупать в кредит

stock – запас, ассортимент товаров

run a business – вести дела, управлять предприятием

get over / overcome / cope with difficulties - справляться с / преодолевать трудности

extortionate – непомерный, грабительский

rate of interest / interest rate – процентная ставка

3. Read the interview of a small business owner and get ready to answer the questions that follow.

It's a small bookshop in the centre of Brighton. A place called George Street. It's a little bit off the beaten track, not in the main shopping street, because when we were first setting up, we didn't have the money to afford the rent on such premises. We sell books to students of English as a Foreign Language, and teachers in their schools. We've been open for about four years now.

The reason we set up the shop in the first place was because both of had been teachers for many years and we had the desire to be self-employed rather than working for someone else all the time.

We've just gone from strength to strength, really. It was the first six or eight months which were touch and go, trying to get new customers, but now we're very busy. We've got two other people working here.

Setting up the shop in the first place, as with all small businesses was very difficult, because it's sort of Catch 22. You have no financial track record in running a business yourself, so nobody wants to lend you any money. And you've never previously ordered goods on credit from anyone, so nobody wants to supply you any goods on credit.

So the most difficult thing is to get your potential suppliers, in our case educational publishers, to agree to supply you with your opening stock and wait for their money. And the other one is to find some friendly bank manager who's willing to lend you cash at an extortionate rate of interest, which is always the case with business loans.

Having got over those two problems, and found a property that we could operate from, the rest of it seems to have been comparatively easy. The business is going so fast now, we're beginning to wonder whether it's the business which is running us or us running the business. That's the problem.

The other thing is that you don't escape from being told what to do when you become self-employed. Because when you're an employee, your boss tells you what to do. And when you're self-employed, it's your bank manager or your accountant or most of all your customers who tell you what to do. So you still find yourself tipping your cap to someone or other.

 

4. Answer the following questions:

1. What is the speaker’s business? What does he sell? In which town?

2. Why isn’t his shop in a main street?

3. Why did he and his wife start the shop?

4. Have they been successful?

5. What were their first months in business like?

6. What are the common problems with setting up a small business?

7. What did the speaker need:

a. from educational publishers?

b. from a bank manager?

8. Do they feel themselves free from others’ dictatorship now when they are self-employed?

9. Who tells the self-employed person what to do?

10. What do you think ‘tipping your cap to someone’ means?

 

DEVELOPING VOCABULARY

 

1. Practise reading the following words aloud; iIn case of difficulties consult a dictionary.

Entrepreneur, entrepreneurship, entrepreneurial, priority, familiarity, employer, employee, franchise, franchisor, franchisee.

2. Complete the following table.

Verb	Noun	Adjective
own	owner/ownership	-
	risk
dream
		creative
		strong
weaken
familiarize
will
		successful

 

3.a) Form nouns using one of the following patterns a+-(i)ty à n, a+-ness à n; make the necessary adjustments in the words; give their Russian equivalents; the first has been done for you:

able à ability – способность; weak à weakness - слабость

Able, weak, (im)possible, aware, necessary, familiar, willing, clear, formal, prior, real, creative, personal, busy, certain, effective, difficult.

b) Use some of these words either as an adjective or as a noun in the following sentences; the initial letter of the word is given as a prompt:

1. There is a strong p……. that they win the next election.

2. When starting your own business you should be a……. of all possible risks.

3. Applicants should demonstrate a f……. with bookkeeping.

4. You need e……. communication within the organization.

5. The boss shouldn’t be disturbed unless it is absolutely n……...

6. We were impressed by his w……. to listen and learn.

7. Success is by no means c……..

8. Just try to do the job to the best of you’re a……..

9. The loss puts our company in financial d…….

10. I’ll keep Thursday afternoon c……. in case we need to meet.

11. We went through usual f……… at customs and passport control.

12. She resigned from her job for p……. reasons.

13. We offer people the opportunity to be c……..

 

4. Form agent nouns from the following verbs (nouns) according to the given pattern, work out the Russian equivalents of the resulting nouns.

employ

 

employ er employ ee

one who employs one who is employed

работодатель, наниматель работающий по найму

 

train, pay, franchise, mortgage, trust

 

5. Form agent nouns (names of people or things) by adding –er to a phrase; give the Russian equivalents of the resulting nouns.

to own a business +-er à a business owner – владелец бизнеса; to process words – a word-processor – текстовый процессор (программа и компьютер для набора и обработки текстов)

 

take a risk, make decisions, produce cars, to rise early, to write textbooks, throw flame, get attention, break ice, do wrong (things), pinch pence, kill pain, bust stress, tell stories, hold shares, seek a job, raise money, supply energy, provide the Internet (services).

 

6. Match the synonyms. 7. Match the opposites.

1. found	a. sponsor	1. accept	a. disable
2. difficulty	b. opportunity	2. succeed	b. borrower
3. effective	c. own	3. strength	c. disinterested
4. goal	d. hardship	4. reasonable	d. refuse
5. chance	e. assistance	5. enable	e. ineffective
6. possess	f. aim	6. interested	f. fail
7. trait	g. intelligent	7. lender	g. unreasonable
8. clever	h. efficient	8. effective	h. weakness
9. backer	i. set up
10. aid	j. feature

 

8. Form word partnerships (more than one option is possible) and use them in the sentences of your own.

pursue assume recognize own make establish set cut grant

an opportunity a company a risk a dream a budget priorities goals a loan a profit

 

9. Sort out the following verbs and idioms denoting a degree of success in business under three headings:

Success	Survival	Failure

 

Boom; succeed; fail; breakeven; go bust; be in debt; prosper; lose count of millions; make a considerable profit; keep/stay afloat; thrive; sink; be a success; be a failure; survive; reach a break-even point; keep one’s head above water; flourish; be a flop; get a business off the ground.

 

10. Complete the sentences with appropriate prepositions.

1. He is a great expert … international management.

2. This book of tips for entrepreneurs was published in association … the Small Business Administration.

3. Could I interest you … something from our range of beauty products?

4. We have dealt … the company for years.

5. To make the right decision we need to look carefully … all options.

6. The project’s success depends … the support of everyone concerned.

7. They supplied us … our opening stock of clothes … credit and agreed to wait … their money.

8. Are you fully aware … all the difficulties that you'll have to overcome?

9. We only deal … companies which have a good credit record.

10. All successful entrepreneurs share a number … common traits.

 

11. Match the following phrasal verbs with their meanings; in case of difficulty consult a dictionary:

1. get something lined up 2. run out of sth 3. run down 4. set up 5. make up one's mind 6. take charge of 7. keep going 8. put oneself out 9. get going 10. stick to sth 11 get along with sb 12 see things through

a. take responsibility for controlling or caring for sth b. start doing something c. continue to do one particular thing and not to change it or stop it; continue to follow a particular path d. try hard, do one's best even if it causes problems for you e. continue doing sth f. organize or prepare things g. establish or arrange h. like each other and be friendly to each other i. to use all of sth and not have any left j. lose power; get exhausted k. continue doing something until it is finished, especially something unpleasant or difficult l. make a decision

 

12. Translate the following sentences into Russian with a focus on phrasal verbs.

1. She really put herself out to get everything ready for us.

2. I think we should stick to our original plan.

3. Since he took his extra job he's really run himself down.

4. My doctor said I was looking run-down and ought to take some time to rest.

5. I can't make up my mind whether to buy it or not.

6. Many hospitals are running out of money.

7. They got a series of activities lined up to keep their business partner entertained.

8. A committee has been set up to organize social events in the college.

9. The boss asked him to take charge of the office for a few days while she was away.

10. I get along well with most of my colleagues.

11. Don't give up; keep going.

12. Having come this far, we were determined to see things through.

 

13. Complete the sentences with the words given using them as either countable or uncountable nouns; make the necessary form adjustments – mind the number of the noun and the article). Translate the sentences into Russian.

1) business

a. She’s finished college and now she works in ….

b. The two brothers started up (…) clothes retailing ….

c. If the introductions are over I’d like to get down to …

d. Many small … fail in the first year.

e. Are you here for … or pleasure?

f. Those were the years of private enterprise, when lots of small … were started.

g. Mathew’s little shop has turned into (…) thriving ….

h. Our firm does a lot of … with overseas customers.

i. I have a hobby out of which I think I could make ….

j. Most small … go through a period of time before they break even, and considerably more time before they make a profit.

k. It was a mistake to go into … with my brother.

2 ) venture

a. There are many joint … between American and Japanese companies.

b. They’ll need to raise £1 million in … capital if they’re to get the business off the ground.

c. I don’t think he will obtain another loan because all his previous … failed.

3) enterprise

a. Euro Disney is (…) much smaller … than its American counterparts.

b. The country needs a government that works to encourage free ….

c. They’re involved in (…) exciting scientific ….

d. We need someone with … and imagination to design a marketing strategy.

e. Don’t forget this is (…) commercial … – we’re here to make money.

f. Margaret Thatcher often talked about the benefits of private … and said that her achievement was to establish an … economy in Britain.

g. State-owned … account for 90% of the country’s output.

 

14. Render the following excerpt from the Russian translation of N.C. Stropolis’ book Small Business Management back into English; use the topical vocabulary.

Как правило, предпринимателям больше всего нравится получать психологическое удовлетворение от того, что они являются хозяевами своей компании, особенно, если это чувство подкрепляется уважением со стороны друзей и родственников.

В финансовом отношении удачливые предприниматели не станут копить деньги или заниматься ценными бумагами, а скорее всего будут вкладывать прибыль в свое предприятие для обеспечения его роста. Они нередко более заинтересованы в расширении дела, чем в получении высокой зарплаты.

В этом заключаются основные вознаграждения от занятия предпринимательской деятельностью. А как обстоит дело с опасностями? Создание нового предприятия всегда связано с определенным риском неудачи. Абсолютно надежного вложения капитала не бывает. Как правило, чем рискованнее предприятие, тем выше потенциальная прибыль. Если предприниматель добивается успеха, прибыли могут быть высокими; если нет - можно потерять все свои сбережения. Для некоторых людей неудача является трагедией; для других – это возможность начать дело заново. Генри Форд, например, дважды терпел неудачу, прежде чем создал «Форд мотор компани». Многие не могут перенести неудачу; она разрушает их «Я», ослабляет волю и энергию. Общество в целом также несет потери при каждой личной неудаче.

 

LANGUAGE FOCUS

1. Complete the sentences with appropriate words choosing from those given in brackets.

1. That three hour lecture yesterday was really …! (tired/tiring)
2. It is … to read of such crimes. (shocked/shocking)

3. We were deeply … to hear of the failure of his business. (shocked/shocking)

4. I like … tasks. (challenged/challenging)

5. This decision of the company management is likely to be …. (challenged/ challenging)

6. I was … by a new security guard who didn’t recognize me. (challenged/ challenging)

7. This idea for starting a business doesn’t seem very …. (excited/ exciting)

8. My trip to Paris has been cancelled. I’m really …. (disappointed/disappointing)

9. I’m very … in this subject. I find it fascinating. (interested/interesting)

10. – I heard some very … news. I’m going to lose my job. I feel terrible.

– Cheer up. Don’t feel so …. There are plenty of other jobs. (depressing/

depressed)

11. Her presentation was good but a little … for people who were new to the subject. (confused/confusing)

12. I doubt that this business can be …. (rewarded/ rewarding)

13. Her success story is an … example to her followers. (inspired/inspiring)

 

2. Complete the sentences by putting the verbs in brackets into the present simple or present continuous.

1. We … about going public next year. (think)

2. I … with Andrew’s clients while he’s on holiday. (deal)

3. He … a small corner shop in Manchester. (own)

4. The new equipment … a fortune, we can hardly afford purchasing it right now. (cost)

5. – How long … your visitors …? (stay)

– Oh, I’m sorry, I … (not/know). We really need to speak to Helen, she generally … with visits. (deal)

6. We … a big risk if we go ahead with the project. (take)

7. This building … too old, we need to find better premises. (get)

8. I … to Minsk next week – I can call in to your office. (come)

9. My name is Andrey Matusevich and I … from Minsk, Belarus. (come)

10. This photocopier … (always/break down).

11. We … the sales to go up the next quarter. (expect)

12. I … an important call from my Moscow partner. (expect)

13. The number of franchises … all over the world due to the obvious advantages of this form of business. (grow)

14. This product … as well as we hoped. (not/sell)

 

3. Helen is starting her own business. Look at the extract from her planning schedule and then complete her letter to a business advice service.

Choose either the present perfect passive (has/have been done), present continuous passive (is/are being done) or a modal passive form (eg: should be done).

Contact bank to arrange loan Find office space Equipment needed? Order if necessary. Print business cards, stationery Decorate office, order furniture, etc. Place advertisements in local press. Review staffing needs for Christmas period

Ö Ö In progress In progress Finish end of month Ö November

 

Dear Sir or Madam

 

I am writing to arrange an interview with one of your business advisers to discuss my business start-up. I've analyzed the market very carefully and I believe that I have a good business plan. I can give you a few details of my progress so far.

 

I've had several meetings with my bank, and a loan (1) has been arranged (arrange). I've found some office space in a good location, although some work (2) …………. (will/need) there before I can move in. I've reviewed my equipment needs and in fact some specialized items (3) ……….. (order) at the moment. My business cards (4) ………… (print) and will be ready in a week or so. This week I'm busy decorating the office, and I (5) ………… (should/finish) by the end of the month.

 

I know that soon I'll have to advertise in the local press, and perhaps you could advise me on the matter. Finally, I'd like some help planning my staffing needs – extra staff (6) …………. (might/need) over the Christmas period.

 

Yours faithfully

 

Helen Chadwick

 

4. Use an appropriate article where necessary instead of the gaps.

Developing a Business Plan

Perhaps (1) … most important step in launching your own business is planning. You need to develop (2) … written statement that explains what you are going to do. Your plan should describe (3) … basic idea for your business and set forth (4) … specific goals and objectives. This plan not only guides your efforts but also helps convince (5) … lenders and investors to finance your business.

(6) … business plan should highlight (7) … following information for (8) … investors.

1. Summary. (9) … crisp overview will help investors decide whether reading (10) whole plan is worthwhile. (11) … potential investors spent (12) … average of five minutes screening (13) … plan. If you don't grab their interest at (14) … beginning, your plan will probably disappear into the wastebasket. It should include:

● A brief description of your product and market;

● (15) … brief description of your company and its principles;

● (16) … summary of your financial projections and expected return on (17) … investment;

● (18) … amount of money you now seek, in what form, and for what purpose.

2. Company and industry.

3. Products.

4. Market.

5. Marketing strategy.

6. Design and development plans.

7. Operations plan.

8. Overall schedule.

9. Critical risks and problems.

Although the business plan has (19) … simple, straightforward purpose, it required (20) … great deal of thought.

 

5. Fill in each of the numbered blanks in the following passage with the words you find appropriate. Use only one word in each space.

John and Mary are in many ways typical of young entrepreneurs today. They have their ……….(1) business, a hamburger restaurant in a shopping centre …….…(2) the South of England. They already have a ……….(3) of over 40 people, because ……….(4) the restaurant is quite small, it has to ……….(5) open for long hours.

They bought the business a couple of years ……….(6) and spent the first few months working ……….(7) hard that they rarely saw any of ……….(8) friends. But once they had got ……….(9) to the way the restaurant worked, they did not ……….(10) to work such long hours and were ……….(11) to take more time ……….(12). Since then they ……….(13) improved efficiency by installing a new computer system.

The restaurant has been very successful, and …….…(14) the competition from another fast food restaurant nearby, the ……….(15) of customers ……….(16) increased steadily. As a ………. (17), they are planning to enlarge the restaurant ……….(18) buying the hairdressing salon ……….(19) door and turning it ……….(20) another seating area.

SPEAKING

Interview Sheet

Name ________________________________________________

Age ________________________________________________

Role play

Three different groups of inexperienced young business people require capital for their businesses. They all apply to the local branch of Megabank.

The roles are:

1. A junior manager (and assistants) at the bank, responsible for new local small businesses.

2. A group of young people who want to open a small specialist shop selling CDs of black music – jazz, soul, funk, reggae, rap, and some latest trends.

3. A group of young people who want to buy an existing take-away pizza business (the lease on the premises, the kitchens, the delivery scooters, and so on),

4. A group of students who already operate a part-time computing consultancy service, advising small businesses on what hardware and software to buy and how to set up an Internet home page. They need money to buy more computers, on which to try out elaborate new software.

Choose the roles, study further details given in the role cards below, discuss your questions or arguments in groups and act out an interview with the bankers, following the pattern of the conversation in 1.

Role 1

Your bank recently launched a big advertising campaign announcing that it was the friend of small businesses, with the result that everyone with half an idea is coming to you and asking for money. Your superiors expect you to pick out good local investment opportunities. On the one hand, you have previously lent money to young people who lost it all within six months. You want facts and figures – about costs, sales projections, profit margins, repayment periods, existing competitors, the possibility of new competitors entering the market, and the long-term prospects for the market.

_________________________________________________________________

Role 2

You are fans of black music; you think you know what the market wants; you think the market is big enough to make a small shop profitable; you think the existing competition is weak – inadequate selection of music, wrong ambience, etc. Remember that you will probably be talking to someone who knows nothing at all about the kind of music you are interested in. He/she wants numbers. You have to convince him/her that your business will be successful – that is will have, and keep enough customers to make a profit. You have to pay three months' rent in advance for the small shop. You have to buy display racks and lots of CD players and headphones. Your suppliers (record companies, exporters, distributors) expect to be paid within 60 days.

Role 3

Members of the group have been working in the business – answering the telephone, making pizzas and delivering them – for over two years. You know that the business is profitable. The owner wants to leave quickly and is keen to sell to you. You have enough money to pay the rent and the normal bills, but the equipment will cost $40,000. Not only do you have experience in the take-away pizza business, but as business students you know all about accounting, promotions, etc.

Role 4

You are what other people call 'computer nerds'. You know everything about computers. You have spent several hours a day in front of a computer screen since you were nine years old. You have been advising small local businesses for two years and earning good money, but you would like to buy better hardware for yourself. $40,000 would be perfect.

____________________________________________________________________

3. Which definition of the word ‘entrepreneur’ do you find the most comprehensive? Explain your choice.

a. Someone who uses money to start businesses and make business deals.

b.A person who attempts to make a profit by starting their own company or by operating alone in the business world, esp. when it involves taking risks.

c. A person who shifts economic resources out of an area of lower and into an area of higher productivity and yield.

d. A person who takes the risks necessary to organize and manage a business and receives the financial profits and nonmonetary rewards.

 

3. Comment on the following quotation:

"Business is a game, the greatest game in the world if you know how to play it." (Thomas J. Watson Sr.).

5. Give arguments to prove the need for more governmental support of small businesses in the Republic of Belarus.

6. Get ready to discuss the topic "Keys to Success in Business", use the following outline:

- Are entrepreneurs born or can entrepreneurial skills be acquired?

- What are the major personal traits that a person must possess to be a successful entrepreneur?

- What knowledge and skills are necessary for a successful entrepreneur?

7. Find detailed information about a business success story and present it to your group mates; make an emphasis on the reasons of success.

WRITING

1. You just nabbed a plum job (заполучить теплое местечко) joining a team of consultants writing an advice column, "Dear Dr. Decisive," for the local newspaper. Yesterday you received your first letter.

 

Dear Dr. Decisive,

 

Yesterday, my boyfriend and I got into a high-spirited discussion about lucky people in business. I say that most successful businesspeople are just plain lucky. They've been in the right place at the right time. He says that these successful people have worked hard preparing themselves for the time when they will be in the right place at the right time. OK, I think we're saying the same thing. He says there is an important difference. Now he won't call me unless I admit I'm wrong (which I'm not) or until you say I'm right. I'm right, right?

 

Call me "Lucky."

 

Write a response to "Lucky."

2. Write an essay of 250 words about the role of small business in your own country, support your judgements with statistics.

3. Imagine that you are thinking of starting a business of your own. Give a short description of this business in a paragraph of about 70-100 words.

SUPPLEMENTARY READING

Text 1

Text 2

Power of a Great Idea

МИНИСТЕРСТВО ОБРАЗОВАНИЯ РЕСПУБЛИКИ БЕЛАРУСЬ

УО «Белорусский государственный экономический университет»

Т.Ф. Солонович

 

 

ENTREPRENEURSHIP. SMALL BUSINESS

ПРЕДПРИНИМАТЕЛЬСТВО.

МАЛЫЙ БИЗНЕС

 

 

Электронное учебно-методическое пособие

по дисциплине «Иностранный язык (английский)»

 

 

Минск 2009

Рецензент: старший преподаватель кафедры теории и практики английской речи БГЭУ Т.Г. Корепанова

 

 

Рекомендовано кафедрой теории и практики английской речи БГЭУ

 

 

Солонович Т.Ф.

Предпринимательство. Мадый Бизнес = Entrepreneurship. Small Business: Электронное учеб.-метод. пособие / Т.Ф. Солонович. – Минск: БГЭУ, 2009. – 39 c.

 

Учебно-методическое пособие содержит лексический материал, тексты для чтения и комплекс упражнений и заданий для формирования англоязычных коммуникативных навыков студентов в рамках актуальной, профессионально значимой темы «Предпринимательство. Малый бизнес». Предназначена для студентов БГЭУ дневной формы обучения.

 

 

 

Entrepreneurship. Small Business

GETTING STARTED

Discuss the following issues in small groups and then report your findings:

- Would you like to be a business owner?

- What personal characteristics should a person possess to be a success in business?

- All big businesses used to be once small. Give the names of some companies that are locally or world famous; recall some facts from their success stories.

- What kind of environment for small business is there in your country?

 

USEFUL VOCABULARY

Make sure you know the following words and word combinations.

business n (U/C) syn venture/enterprise/ company start/set up a business own a, v owner n ownership entrepreneur n entrepreneurship n entrepreneurial a reward n, v rewarding a challenging a risk n, v risky a take/assume/recognize/ minimize/manage risk(s) risk-taker dream n pursue a dream earn a living creativity n opportunity n; syn. chance recognize opportunity

goal n syn. objective, target set/meet/achieve goals reasonable/obtainable goals willingness n strength n weakness n be aware of v awareness n familiar (with) a familiarity n success n successful a be a success succeed v syn. prosper/boom/ flourish/thrive v fail v syn be a flop/ go bust/ go bankrupt failure n

survive v assistance n syn aid n backer n syn sponsor n premises n outlet n account for v franchise n, v franchising franchiser/-or n franchisee n diversify v diversification n Idioms: be self-employed syn. be one's own boss keep one's head above water keep afloat start from scratch break even v syn to reach a break-even point/situation

 

READING

Text 1

1. Read the text and complete the outline of its contents given below; some items are suggested to you.

Small Business

Many people find the potential independence and financial rewards that can come from owning a small business very appealing. For some, owning their own business has been a lifelong dream. Many people, however, hesitate to pursue this dream because they don’t think they have enough education, experience or money – or are simply afraid they might fail. Others can’t accept the idea that they can change their lives – that people like them could ever own their own business. For still others, going into business for themselves is a financial necessity because they have lost their job and there are no other readily available ways to earn a living, or even survive.

Whatever the reason, owning your own business can be one of the most challenging, satisfying, demanding and rewarding things you do in your life. However, there are real risks and difficulties in starting any new business.

Entrepreneurs

Small business owners are also called entrepreneurs. One definition of an entrepreneur is someone who organizes, manages and assumes the risks of a business or enterprise. Other experts say an entrepreneur is a person who can “create out of nothing” a viable business.

There are a number of myths and misconceptions about what it takes to be an entrepreneur. One misconception is the people who go into business for themselves are naturally high risk-takers. Of course, there are risks in business, but real entrepreneurs aren’t gamblers who depend solely on chance to succeed.

In fact, just the opposite is true: successful entrepreneurs do everything possible to minimize the real risks associated with starting a company by studying, planning and organizing the information, people and materials they will need to succeed. They manage risk by setting reasonable and obtainable goals – then work to achieve them. In short, the successful small business owner works hard and intelligently.

Despite what many think, starting a successful small business does not always require a lot of formal education or prior management experience. Certain basic skills will be needed, plus some background in the business being contemplated. Just as important as formal education is the willingness to learn and improve the skills needed to succeed in business.

One of the biggest misconceptions about entrepreneurs is that they are only interested in making money. Entrepreneurs certainly like and respect money, but money is only a byproduct of an even bigger goal for many very successful entrepreneurs.

As one U.S. expert on entrepreneurial management observed:

Many businesses fail because their owners were only interested in money. Most really successful companies are founded by someone with an idea and a dream. Whatever money and wealth they accumulated is the result of them being willing to work night and day to make this dream a reality. If you want to be really successful, know what your dreams are before going into business.

There are also a number of common traits successful entrepreneurs share:

- a great deal of energy;

- ability to establish priorities and make decisions;

- ability to deal effectively with a wide variety of people, such as customers, employees, suppliers, possible investors and lenders;

- ability to communicate clearly and effectively;

- ability to work with numbers;

- familiarity with customers and with the products or services to be sold;

- ability to balance conflicts between business and personal goals;

- awareness of personal strengths and weaknesses.

Becoming an entrepreneur is a way of looking at the world, seeing opportunity where others see problems. It is also knowing how to use certain basic tools to achieve your goals.

 

Outline

1. Reasons for starting one's own business.

2....................................

3. Common misconceptions about entrepreneurs.

3.1..................................

3.2..................................

3.3..................................

4....................................

 

2. Read the text again and say if the following statements are true or false according to the information in the text.

1. People start their business for various reasons.

2. All the people starting their own business want to be independent.

3. Many people hesitate to set up their own business because they are afraid of failure.

4. Real entrepreneurs are like gamblers because they solely depend on chance to succeed.

5. Starting and running a successful small business requires a lot of formal education and experience.

6. Many entrepreneurs fail because they are only interested in money.

7. Ability of dealing with people and communicating effectively is an important trait of a successful entrepreneur.

 

3. Match the halves.