People, profit, enterprise and entrepreneurship Case Study Teacher's Notes Student Activities Explain the meaning of the term 'private sector' to someone who has no knowledge of economics. List the sorts of commercial/business enterprises that you would expect to find in the private sector of any economy. Explain how the private sector in any economy is considered to be the 'engine' of economic growth. Use the following list of economics concepts to devise a flowchart or concept map which explains the links/relationships between each concept: private sector, economic growth, economic development, production, income, expenditure, savings, credit, loans, profit, resources, taxes, standard of living, business enterprises. Explain what is meant by a small business and microenterprise. Identify examples of these sorts of enterprises in the Australian economy and in developing economies. If these businesses are so small, explain why they are so important in an economy. With reference to a small business you have contact with, explain how it contributes to the Australian economy. Interview the local small business operator and find out how important access to credit and other financial services are to the operation of their business. Explain how the following factors or constraints hold back the growth of small businesses and microenterprises in developing countries. Provide examples of such factors where possible. Political, economic, social, environmental, technological, international/global factors. Imagine you wished to set up a small business. Draw up a simple business plan. Investigate the availability and type of support available in Australia for those people wishing to start their own business. (Contact your local Chamber of Commerce or the Small Business Association to assist in your research). Compare this to setting up a small business or micro-enterprise in a developing country. The Government's Australian overseas aid program targets three priority areas in order to support private sector development in developing economies. These areas are 1) effective governance, 2) the improvement of basic social services and infrastructure and 3) supporting enterprise development. In small groups, select one of these areas and explain how support for this area would assist the economic development of the private sector which would help reduce poverty in a developing economy and visit the globaled website at http://globaled.ausaid.gov.au to find three examples of specific aid projects to illustate your explanation. Present your findings to the class. 'Lack of credit to set up and grow small business is one of the single greatest barriers to self-improvement for many poor people.' Suggest reasons why credit availability and savings facilities are important when setting up and running a small business. With reference to the PAKMED project in this case study or other projects available on the website, outline how the project has allowed access to credit and savings facilities. In small groups: List the sorts of benefits the Australian aid program would like to see flow from the work of such projects. Draw up a poster or pamphlet which 'markets' the importance of savings and credit in SMEs and microenterprise growth and development which can be used to 'recruit' budding entrepreneurs in developing economies Discuss ways the Australian aid program could 'measure' the success of such projects in achieving these benefits. As we begin the 21st century, brainstorm in small groups some of the opportunities and threats facing the setting up and growth of SMEs and microenterprises in developing economies. Present your findings to your classmates.   Top © Commonwealth of Australia