1
Every business must make a profit or surplus to survive, regardless of whether it is traditional or a social enterprise; there is no true 'Not-For-Profit' entity.
2
The four primary business entities covered are: self-employed (sole trader), partnerships, private limited companies, and social enterprises.
3
Private limited companies facilitate raising equity finance through issuing new shares and offer limited liability for owners.
4
Funding sources vary drastically by entity: self-employed rely on personal savings and family loans, while companies can access investment finance and social enterprises typically rely on grants.
5
Strategies for managing business risks include creating a solid business plan and budget, maintaining cash flow forecasts, obtaining appropriate insurance (like critical illness or key person insurance), and utilizing formal partnership agreements.