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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate an understanding of the function of the market mechanisms in a new venture 
SAQA US ID UNIT STANDARD TITLE
263514  Demonstrate an understanding of the function of the market mechanisms in a new venture 
ORIGINATOR
Task Team - New Venture Creation 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Generic Management 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
114595  Demonstrate an understanding of the function of the market mechanisms in a new venture  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who wish to develop an understanding of the way market mechanisms operate in a new venture. It will also address the economic realities of South Africa and the role new ventures play in job creation.

Learners credited with this unit standard will be able to:
  • Explain the free market system in terms of perfect and imperfect competitive markets.
  • Analyse the interaction of demand and supply in price determination.
  • Analyse the factors that influence economic activity.
  • Describe the development and significance of markets. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that the learner has the following knowledge and skills:
  • Communication at NQF Level 3. 

  • UNIT STANDARD RANGE 
    N/A 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the free market system in terms of perfect and imperfect competitive markets. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    An explanation is given of the characteristics of different economic systems. 

    ASSESSMENT CRITERION 2 
    The role of competition in a free market system is explained with examples from state owned/monopolies and private businesses. 

    ASSESSMENT CRITERION 3 
    Competition is illustrated by the listing varying prices of the same product/service. 

    ASSESSMENT CRITERION 4 
    Reasons for imperfect competitiveness are described with examples thereof. 

    ASSESSMENT CRITERION 5 
    The advantages and disadvantages of competition are explained with examples for the consumer and business. 

    ASSESSMENT CRITERION 6 
    A description is given of the interaction of roleplayers in the economic system. 

    ASSESSMENT CRITERION 7 
    The conditions for the existence of perfect and imperfect markets are explained in relation to the South African context. 

    SPECIFIC OUTCOME 2 
    Analyse the interaction of demand and supply in price determination. 
    OUTCOME RANGE 
    The analysis is under conditions of perfectly competitive markets. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    An explanation is given of the laws of demand and supply. 
    ASSESSMENT CRITERION RANGE 
    The explanation includes the consequences of these laws for new ventures.
     

    ASSESSMENT CRITERION 2 
    An explanation is given of the relationship between the variables of demand and supply curves. 

    ASSESSMENT CRITERION 3 
    The relationship between demand, supply and price is discussed with reference to own products or service. 

    ASSESSMENT CRITERION 4 
    Factors that lead to changes in the demand and supply curve are listed in own specific context. 

    ASSESSMENT CRITERION 5 
    Factors of production are explained in terms of the roles and contribution to the economy. 

    ASSESSMENT CRITERION 6 
    Money is explained in terms of its role in the economy. 

    SPECIFIC OUTCOME 3 
    Analyse the factors that influence economic activity. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The effects of cyclical movements in a market system are evaluated in context of a new venture. 

    ASSESSMENT CRITERION 2 
    A description is given of the concept of inflation and its impact on the new venture. 

    ASSESSMENT CRITERION 3 
    Reasons are identified for the decline in the value of money. 

    ASSESSMENT CRITERION 4 
    An explanation is given for the role of foreign currency and exchange rates in the general economy. 

    ASSESSMENT CRITERION 5 
    An explanation is given of the role of the interest/BA rate, Gross Domestic Product and Balance of Payments in the operations of the new venture. 

    SPECIFIC OUTCOME 4 
    Describe the development and significance of markets. 
    OUTCOME RANGE 
    The description must have particular reference to South Africa. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    International trade as a result of uneven distribution of resources is investigated in terms of opportunities for new ventures. 

    ASSESSMENT CRITERION 2 
    Socio-economic factors are identified that underline the importance of new ventures in South Africa. 

    ASSESSMENT CRITERION 3 
    Growth sectors that exist in South Africa are identified and claissified for possible new ventures. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • An individual wishing to be assessed (including through RPL) against this Unit Standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this Unit Standard must be registered as an assessor with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard or assessing this Unit Standard must be accredited as a provider with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Moderation of assessment will be conducted by the relevant ETQA at its discretion. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • Balance of Payments, Exchange Rates, Interest Rates.
  • The economic cycle. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identifying and solving problems in which responses display that responsible decisions using critical and creative thinking have been made when:
  • Analysing the interaction of demand and supply in price determination.
  • Analysing the factors that influence economic activity.
  • Describe the development and significance of markets. 

  • UNIT STANDARD CCFO COLLECTING 
    Collecting, analysing, organising and critically evaluating information to better understand and explain:
  • The free market system in terms of perfect and imperfect competitive markets.
  • The interaction of demand and supply in price determination.
  • The factors that influence economic activity.
  • The development and significance of markets. 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrating an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation when:
  • Explaining the free market system in terms of perfect and imperfect competitive markets.
  • Analysing the interaction of demand and supply in price determination.
  • Analysing the factors that influence economic activity.
  • Describe the development and significance of markets. 

  • 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 
    This unit standard replaces unit standard 114595, "Demonstrate an understanding of the function of the market mechanisms in a new venture", Level 4, 5 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  66249   Further Education and Training Certificate: New Venture Creation  Level 4  NQF Level 04  Reregistered  2023-06-30  SERVICES 


    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.
     
    NONE 



    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.