Clothing and Textiles · Lesson 13

Entrepreneurship, business plans, costing, pricing and break-even, managing an enterprise, exhibitions and fashion shows

WAECNECO

What the syllabus asks

WAEC: Entrepreneurship (entrepreneur, entrepreneurship, enterprise; characteristics; advantages and disadvantages; requirements; factors promoting success; types of enterprises; setting up: business idea, market research, business plan; managing the enterprise); Organising exhibitions, modelling and fashion shows (meaning, types, purpose, factors: publicity, security, venue, exhibits).

NECO: Entrepreneurship (entrepreneur, entrepreneurship, enterprise; characteristics; advantages and disadvantages; requirements; factors promoting success; types of enterprises; setting up: business idea, market research, business plan; managing the enterprise); Organising exhibitions, modelling and fashion shows (meaning, types, purpose, factors: publicity, security, venue, exhibits).

What you will learn

Define entrepreneurship terms.
State characteristics, advantages and disadvantages of entrepreneurs.
State requirements for a clothing business in Nigeria.
Explain factors for success and causes of failure.
Name clothing and textiles enterprises.
Describe setting up: idea, research, business plan.
Cost, price and calculate break-even; manage a business.
Organise and evaluate exhibitions and fashion shows.

Key points

Entrepreneurs organise resources and bear risk for profit.
Key qualities: creativity, initiative, persistence, integrity, financial discipline.
Advantages: independence, income; disadvantages: risk, stress.
Requirements: skills, capital, equipment, premises, CAC registration.
Success needs research, quality, customer care, marketing and records.
Enterprises: tailoring, alterations, uniforms, embroidery, dyeing, retail.
Business plan: description, market, marketing, operations, finance.
Break-even = fixed costs ÷ (price − variable cost).
Exhibitions and fashion shows promote products and skills.
Plan publicity, security, venue, exhibits, models, safety; evaluate.

Start here: Entrepreneurship: meaning of terms

Clothing and Textiles prepares students for self-employment, and WAEC examines entrepreneurship in detail.

Key terms

Entrepreneur: a person who identifies a business opportunity, organises resources (money, materials, people, equipment) and takes the risk of starting and running a business for profit.
Entrepreneurship: the process of creating, organising and managing a new business venture, bearing its risks for its rewards.
Enterprise: a business or company; also the quality of being willing to undertake new projects.
Business idea: a concept for a product or service that can be sold for profit.
Capital: money and assets used to start and run the business.
Profit: income minus costs; loss: costs greater than income.
Risk: the possibility of loss.
Market: the people willing and able to buy a product.
Small and medium enterprises (SMEs): businesses with few employees and modest capital; most Nigerian fashion businesses are micro or small enterprises.
Intrapreneur: an employee who acts like an entrepreneur within an organisation.

Importance of entrepreneurship in clothing and textiles

Creates employment for the owner and others, reducing youth unemployment.
Provides income and improves living standards.
Uses local materials (ankara, adire, aso-oke) and promotes culture.
Reduces importation of clothing and saves foreign exchange.
Develops skills through apprenticeships.
Contributes to national economic growth and tax revenue.
Encourages innovation and creativity.

Forms of business ownership

Form	Features	Example
Sole proprietorship	One owner; easy to start; owner takes all profit and bears all losses (unlimited liability)	A single tailor’s shop
Partnership	Two or more owners share capital, skills, profit and risk; needs a written agreement	Two designers sharing a studio
Limited liability company	Separate legal entity; owners’ liability limited to their shares; more formalities	A garment factory
Cooperative	Members pool resources for mutual benefit	Weavers’ or dyers’ cooperative

Most students begin as sole proprietors and change form as the business grows.

The clothing value chain

Opportunities exist at every stage: cotton farming → ginning → spinning → weaving or knitting → dyeing and printing → garment design → pattern making → cutting and sewing → finishing and packaging → distribution and retail → care services (laundry, alterations) → recycling. A student entrepreneur can choose one stage or link several (for example, dyeing adire fabric and sewing it into garments).

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Practice questions

1. An entrepreneur is a person who

starts and manages a business and bears its risk
works only for a salary
buys goods for use
audits accounts

Show answer

A: starts and manages a business and bears its risk
Risk-taker.

2. Break-even point is where

profit is highest
costs are zero
sales stop
total revenue equals total cost

Show answer

D: total revenue equals total cost
No profit, no loss.

3. Fixed cost ₦150,000; price ₦7,500; variable cost ₦4,500. Break-even output is

Show answer

C: 50
150,000 ÷ 3,000.

4. A ₦4,500 cost with 40% mark-up sells at

₦1,800
₦6,300
₦4,900
₦6,000

Show answer

B: ₦6,300
4,500 × 1.4.

5. A business name is registered with the

Corporate Affairs Commission
NAFDAC
NECO
SON

Show answer

A: Corporate Affairs Commission
CAC.

Key words

Entrepreneur: Person who starts and runs a business, bearing risk.
Entrepreneurship: Process of creating and managing a venture.
Enterprise: A business.
Capital: Money and assets for business.
Market research: Study of customers and competitors.
Business plan: Written plan of a business.
Fixed cost: Cost not changing with output.
Variable cost: Cost changing with output.
Mark-up: Percentage added to cost.
Break-even: Output where income equals costs.
CAC: Corporate Affairs Commission.
Itinerant tailor: Tailor who travels to customers.

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