Course Code:8503 Unit # 08: Entrepreneurship

ENTREPRENEURSHIP
Course Code :8503  Unit # 08
1
OBJECTIVES
 - 08 Legal and Tax Issues
Choosing a Name of
Entrepreneurial Venture
Legal and Tax Issues
in Hiring Employees
Insurance
Raising Money and Legal Issues
Standard Operating Procedure (SOPs)
Key Performance Indicators (KPI):
2
-Legal and Tax Issues:
Unfortunately, many people perceive engaging an
attorney as an unnecessary expense when beginning a
new venture.
 However, the earlier you can consult a professional,
the more likely your business will avoid costly mistakes
The precise impact that tax rates have on small business
growth and job creation is frequently debated, especially
when changes to tax rates are on the horizon.
This debate is often clouded by politics, and economists
have yet to agree on exactly how large the rates of
taxation typically loom in the minds of current and
potential entrepreneurs.
3
-Choosing a Name of Entrepreneurial Venture
 Finding the right name for your startup can have a significant
impact on your success.
 The wrong name can do worse than fail to connect with
customers; it can also result in insurmountable business and
legal hurdles.
 In contrast, a clear, powerful name can be extremely helpful in
your marketing and branding efforts.
 Don’t pick a name that could be limiting as your business
grows.
 Use a name that conveys some meaning
 Conduct a trademark search.
 Make sure the name sounds good when said aloud.
 Use resources available for brainstorming names.
 Make sure personally happy with the name.
4
-Legal and Tax Issues in Hiring Employees
 From the beginning of venture, they need to consider
some of the issues raised by the presence of employees.
 Employees are agents of the company and, as such, are
governed by many of the agency rules that already
affect the relationships of partners to a partnership and
officers to a corporation.
 Thus, employees have the duty of loyalty to the
company and obligations to not compete, to respect
confidentiality, and to account for their activities.
 Once you find the right person with the perfect
combination of skills and experience, you must know
about these tax duties
5
-Insurance:
 Insurance and the various policies have their unified
characteristic as a business that has the institutional role of
supporting other business activities.
 Thus the development of insurance is commingled with other
economic activities and initiatives and with economic growth.
 However, the conditions for insurance in emerging markets—
and in particular in Latin America and the Caribbean—are not
primarily conducive to economic
activity and entrepreneurship.
 There are numerous reasons for this,
including institutional shortcomings and
insurance premiums that do not reflect fair prices.
6
 The research refers at various areas, e.g., economic growth,
financial market, insurance markets, entrepreneurship.
 The literature explored and provided answers of different
links e.g., financial markets and economic growth; financial
markets and entrepreneurship; entrepreneurship and
economic growth.
 In fact, financial market development is considered an
important determinant of economic growth and for
entrepreneurship; entrepreneurship and economic growth
are closely related in the sense that entrepreneurship
prompts economic growth.
 However, the links between insurance and entrepreneurship
and the contribution of insurance to economic activity and
growth, and particularly how insurance supports
entrepreneurship still need to be qualified and empirically
7 proved.
-Raising Money and Legal Issues:
Raising investment for your startup is a lengthy,
time consuming, complicated and yet indispensable
and exciting process.
 Correct legal structure : It is worth noting that you
can’t give away shares in your business in exchange
for investment monies unless you have a legal entity
with shares, i.e. a private limited company.
 Business plan : This is the detailed case for your
business, which will include your market research
 Create a list of target investors : This is for your
own benefit, not investors.
8
-Standard Operating Procedure (SOPs)
 "A Standard Operating Procedure is a document which
describes the regularly recurring operations relevant to
the quality of the investigation. The purpose of a SOP is
to carry out the operations correctly and always in the
same manner".
 Standard operating procedures help maintain safety and
efficiency for departments such as:
 Production/operations
 Sales and customer service
 Employee training
 Legal &Financial
9
-Key Performance Indicators (KPI):
 Key performance indicators (KPI) are a set of quantifiable measures
that a company uses to gauge its performance over time.
 These metrics are used to determine a company's progress in
achieving its strategic and operational goals, and also to compare a
company's finances and performance against other businesses
within its industry.
 Human resources departments measure employee turnover
among other related metrics.
 Each KPI should have SMART features:
 A Specific objective
 A way to Measure goal progress
 Attainable, realistic goals
 Relevance to the business
10 A Timeframe that makes sense for the company

Course Code:8503 Unit # 08: Entrepreneurship

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ENTREPRENEURSHIP

Course Code :8503  Unit # 08

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