SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Determine the viability of a business and monitor its performance 
SAQA US ID UNIT STANDARD TITLE
116793  Determine the viability of a business and monitor its performance 
ORIGINATOR
SGB Manufacturing and Assembly Processes 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 06 - Manufacturing, Engineering and Technology Engineering and Related Design 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
In order to set up and run a sustainable business, a technically qualified learner will also have to establish the viability and manage the sustainability of the business unit or small business. In order to do this effectively, qualifying learners will be able to:
  • Develop or evaluate strategic plans and business plans of the business unit or own company for profitability and sustainability
  • Monitor and manage the assets of the business unit or small company
  • Develop approaches to quotations and manage stock in line with business strategy.

    In doing this, a learner will also know and understand:
  • Concepts, issues and conventions relating to balance sheets, business plans and business strategies
  • Approaches to obtaining and retaining business
  • Approaches to acquiring and managing assets, stock and raw materials.

    Learners can be assessed against this unit standard in any of the following contexts:
  • A small or micro business
  • A semi-autonomous business unit within a larger organisation.

    Learners in the context of a business unit may not require the skills and knowledge in this unit standard for their day-to-day activities. The skills and knowledge required in this unit standard are, however, important for their understanding and their choices and decisions related to the viability and sustainability of business activities overall.

    The skills, the knowledge and the values reflected in this unit standard form part of the exit level outcomes required for the National Certificate in Master Craftsmanship NQF Level 5. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    The credits for this unit standard assume that learners have an NQF Level 4 qualification, as well as experience, in a trade or technical occupation. They also assume that learners are working towards their qualification as part of a learning programme, which integrates all the required unit standards.

    Learning time will increase if learners do not have:
  • A relevant NQF 4 qualification
  • Experience in a relevant field.

    Learning time will be decreased if they have experience in this field because:
  • Their learning programmes will be adjusted to build on what they already know
  • They can apply to have that prior learning recognised. 

  • UNIT STANDARD RANGE 
    The ranges as indicated under the specific outcomes determine the scope and level of this unit standard. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Develop a business strategy, and evaluate the viability of an enterprise or business unit. 
    OUTCOME RANGE 
  • Develop a business strategy: in the case of a business unit within a larger enterprise, develop a strategy for the business unit within the context of the enterprise's strategy. The business unit will generally comprise of a semi-autonomous department within a larger organisation e.g. a tool room maintenance unit, a construction or installation team.
  • Business plan: overview of business opportunity and markets, start up costs (if new business), source and use of funds, pro-forma budgets, income and expense statements, venture confirmation i.e. break-even analysis, profitability ratios, equipment requirements, cost of spares, materials. 

  • ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Types of financial reporting and their advantages are explained. 

    ASSESSMENT CRITERION 2 
    The consequences of non-reporting are explained. 

    ASSESSMENT CRITERION 3 
    Markets, key trends in the sector and customer potential are evaluated. 

    ASSESSMENT CRITERION 4 
    Competitors and current product or services are evaluated. 

    ASSESSMENT CRITERION 5 
    Potential markets, potential profits and estimated costs are calculated. 

    SPECIFIC OUTCOME 2 
    Develop a business plan. 
    OUTCOME RANGE 
    The business plan includes detailed approach to funding, pricing, acquisition of fixed assets, marketing operational goals and objectives and budgets. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Content, format and layout of business plan is suitable for presentation to potential sources of finance. 

    ASSESSMENT CRITERION 2 
    Business plans links to business strategy. 

    ASSESSMENT CRITERION 3 
    Business plan is realistic, practical and implementable. 

    SPECIFIC OUTCOME 3 
    Monitor performance of business against business plan, identify areas for improvement and implement corrective action. 
    OUTCOME RANGE 
    Monitor performance includes budget v/s actual; changes in balance sheet. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Actual income and expenditure is compared to planned income and expenditure. 

    ASSESSMENT CRITERION 2 
    Variances are identified. 

    ASSESSMENT CRITERION 3 
    Corrective actions are identified, implemented and their effectiveness evaluated. 

    ASSESSMENT CRITERION 4 
    Financial ratios are calculated and their implications explained. 

    SPECIFIC OUTCOME 4 
    Evaluate opportunities, determine approach and prepare quotations. 
    OUTCOME RANGE 
  • Pricing includes taking into account exchange rate fluctuations.
  • Opportunities are supply of products or services, reduction of costs to existing products or services, etc.
  • Evaluate covers establishing profitability, return on investment and competitiveness of the price and quality versus price.
  • Approach covers options such as loss leader, retaining customer business, undercutting opposition, etc. 

  • ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Total cost of product or service is calculated using fixed and variable costs. 

    ASSESSMENT CRITERION 2 
    Break-even analysis is carried out to determine cost and selling price of product or service. 

    ASSESSMENT CRITERION 3 
    Capacity of business unit or company to provide service or product is established. 

    ASSESSMENT CRITERION 4 
    Effect of purchases of additional equipment on the balance sheet is established. 

    SPECIFIC OUTCOME 5 
    Procure and manage stock. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Identify stock items and stock levels. 

    ASSESSMENT CRITERION 2 
    Identify suppliers and lead times. 

    ASSESSMENT CRITERION 3 
    Develop, maintain and implement stock and purchasing control programme/system. 

    ASSESSMENT CRITERION 4 
    Levels and kinds of stock are balanced for efficient use of financial resources. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    The assessment will be governed by the policies and guidelines of a relevant Education and Training Quality Assurance body, which has jurisdiction over this field of learning. The assessor will be accredited and have a Diploma in Master Craftsmanship at NQF Level 5 or an equivalent NQF Level 5 qualification and experience in the running of a small or medium business or autonomous business unit within a larger organisation. Since it is unlikely that there will be sufficient qualified people in the early stages of the life of this qualification, ETQAs should be allowed to make interim arrangements such as:
    1. Assessor panels
    2. People experienced in the field but without formal qualifications, eg current or retired owners of successful businesses or respected managers in organisations.

    Learners can be assessed in the language of their choice although if they have to report incidents or conditions to someone else, they will be assessed on their ability to report in the language commonly used in the working environment.

    They will be assessed in a workplace but can submit documents, projects, test results and assignments that were not produced in the workplace.

    They can be assessed against this unit standard to obtain credits or as part of an integrated assessment for a qualification. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    The activities in this unit standard require an extensive practical experience integrated with a thorough knowledge and understanding of theory and the options related to the technical field and to general principles of organising work. It is assumed that the learners being assessed will have participated in formal structured learning processes to acquire the relevant knowledge. What follows are broad guidelines to the kind of content of such structured learning processes.

    1. Names & functions of:
  • Relevant accounting concepts, e.g. balance sheets, assets, working capital
  • Financial measures relating to the performance of companies, e.g. profitability, return on investments etc.
  • Financial documents, e.g. quotations, balance sheets, price lists

    2. Purpose of:
  • Relevant accounting concepts, e.g. balance sheets, assets, working capital
  • Financial measures relating to the performance of companies, e.g. profitability, return on investments etc.
  • Financial documents, e.g. quotations, balance sheets, price lists
  • Business plan
  • People: costs, skills required, professional services

    3. Attributes, descriptions, characteristics & properties:
  • Relevant accounting concepts, e.g. balance sheets, assets, working capital
  • Financial measures relating to the performance of companies, e.g. profitability, return on investments etc.
  • Financial documents, e.g. quotations, balance sheets, price lists
  • Function/purpose (of reporting)
  • Structure/elements (of reporting)
  • Petty cash, capital, working capital
  • Capital: working capital, project sales/income, cash flow analysis, breakeven analysis, determining future growth
  • Costs of typical products/services

    4. Processes and events:
  • Identifying, analysing markets, establishing market demand
  • Price escalation

    5. Causes and effects, implications of:
  • Poor financial controls, records and procedures
  • Not having a business plan
  • Traps and pitfalls in securing capital

    6. Procedures and techniques:
  • Calculating financial performance measures
  • Optimising use of resources
  • Optimising markets

    7. Regulations, legislation, agreements, policies, standards:
  • Financial and tax legislation
  • Acceptable business practise and standards
  • Impact of non-payment, slow payment, giving credit

    8. Theory: rules, principles, laws:
  • Principles of running a business
  • Types of business (legal entity)
  • Customers, customer needs, satisfaction
  • Principles of measuring financial performance
  • Principles, methods and techniques of pricing of products and/or servicing
  • Principles, methods and techniques of bookkeeping and basic investment appraisals (what to buy and what not to buy, rent, hire purchase, loans)
  • Principles, methods and techniques of basic inventory control
  • Principles: tendering, estimating, profit margins, debtors and creditors, balance sheets

    9. Relationships, systems:
  • Business strategy and business plan
  • Volume and profits 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems:
  • Market, customer related problems
  • Financing problems 

  • UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information:
  • Business plan
  • Market trends
  • Competition 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively:
  • Communicate plan to interested parties including employees. 

  • UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically:
  • Generation and analysis of information is done by means of effective technology. 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of related systems:
  • Understanding of micro economic issues. 

  • UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Supplementary Information

    How credits were determined:

    Activity & credits:
  • Classroom learning: 48 hours
  • On-the-job learning: 40 hours (Project)
  • Self directed learning: 10 hours (Assignments, projects)
  • Coaching required: 2 hours (One-to-one passing on of tips and expert practice)
  • Other: 0 hours (Preparation of portfolios)
    Total: 100 hours
    Credits: 10 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Fundamental  49061   National Certificate: Master Craftsmanship (Electrical)  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  EWSETA 
    Elective  58025   National Certificate: CNC Production Machining  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  MERSETA 
    Elective  57122   National Certificate: Printing and Manufacture of Packaging  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered" 
    2015-06-30  FPMSETA 
    Elective  22774   National Diploma: Rubber Technology  Level 5  NQF Level 05  Reregistered  2023-06-30  MERSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Coastal Kzn F.E.T. College - Umbumbulu Campus 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.