Page 22 - Business_Studies_F5
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Student's Book Form Five
4. A business start-up is the process address the needs, interests, and
of establishing a new venture with expectations of different stakeholder
the aim of bringing products to groups. It requires identifying
the market. It involves identifying key stakeholders, understanding
business ideas, identifying a business their priorities and concerns, and
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opportunity, securing funding, and implementing actions to engage and
executing a plan to turn the idea into manage their relationships.
a viable business. 9. Understanding and managing
5. Start-ups often face challenges such stakeholders is essential for
as resource constraints, market businesses to build trust, mitigate
competition, and uncertainty, but risks, and create value for all parties
successful ones create jobs, drive involved.
innovation, and contribute to 10. Stakeholder engagement is the
economic growth. process of involving the stakeholders
6. Stakeholders in business refer to in relevant decision-making
individuals, groups, or entities processes and activities. It helps
that have interest in or are affected businesses to build trust, enhance
by the activities and outcomes of relationships, and achieve shared
a business. They include owners, goals and outcomes.
employees, customers, investors, 11. Stakeholder mapping is a strategic
suppliers, government agencies, tool used by businesses to identify
communities, and advocacy and analyse stakeholders based on
groups. their level of interest and power. It
7. The stakeholders in business are involves categorising stakeholders
categorised into internal and external into different groups and plotting
stakeholders. Internal stakeholders them on a matrix to prioritize
are individuals or groups within the engagement and management
business, such as owners, employees, efforts.
and managers. External stakeholders 12. Stakeholder mapping helps
are individuals or groups outside businesses understand their
the business, such as customers, stakeholders’ perspectives, needs,
suppliers, government agencies, and and expectations, enabling more
local communities. effective communication and
8. Stakeholder management involves decision-making.
developing strategies to actively
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