Essential Business Terms - Letter "E"

Economy - Refers to the state of a country orHow a company handles feedback has a bearing
region in terms of the production andon the progress the company will make in the
consumption of goods and services and thefuture. Customers are usually the best evaluators
supply of money. There is no country that canof a company's goods and service delivery as
exist without an economy. The safest place forthey have firsthand experience with both the
any country is to be in a position where there aemployees and the product.
lot of production happening to the extent thatExpenditure - This refers to where we spend
surplus is exported to other regions. A nation'smoney. Just as you plan and set goals for getting
economy is affected when a nation operates onincome, expenditure too should be planned for.
credit only. The economic temperature of aThis is the reason for a budget which helps a
country has a direct effect on any company orfinancial person to monitor where money is being
organization operating within.spent. Failure to track the expenditure patterns
Employment - This is when someone gives youwill lead to bankruptcy as money leaks every
work and you are paid for it. Employment can benow and again. Every month and every so often,
short term or long term (open ended contract). Ita variance report must be produced which shows
is important that when you are employed youwhat was budgeted and how much has been
adhere to the expectations of your job. Meetspent already. This helps leaders to make
your targets. Stick to company code of conduct.informed and fruitful decisions.
Remain accountable to your employer. DevelopEncryption - This is important in the security of
trust with immediate superior. If employed as abusiness information. This is a process by which
leader or manager, treat your subordinatesinformation is converted to codes during
properly. When employed sometimes it is abouttransmission or storage. No one is able to tap into
results not necessarily the method to the resultsthe organization's information when information is
hence some sub contract to get the job done. Itencrypted. On the other hand one has to decrypt
is up to the one requiring results to spell out if subthe information to make it understandable. With
contracting is permissible. The rate of employedthe improvements in ICT, there is an inherent
to non employed populace determines theneed to secure organizational data from outsiders
productivity levels in a country. A country withwho can use this to damage the reputation of the
80% of the population unemployed is either nonorganization.
productive or most people are now running theirEnvironment - This refers to the conditions or
Small to Medium enterprises (informal sector).surroundings in which the business operates. It
Empowerment - This means giving power oralso refers to the natural world, especially as
authority to someone else. The best method ofaffected by humanity, the existence of the
empowerment is to create in a person a selfbusiness operation. Management should take
sustainable environment where they are notissues of environment seriously as some
depending on donor aid but they can generatebusinesses have a negative impact on people's
their own livelihood income. For a long timelives through fumes, poor waste management
communities around the world have begged andetc. In most organizations this issue is handled by
received donor funding. This has created a lot ofSHE people (Safety, Health and Environment). You
dependence. In times where this funding iscannot run a mine and ignore these three
stopped there is absolute chaos. There is nothingfundamentals. How is your mine impacting on the
wrong with donor funding. Empowerment is a lotnatural ecosystems, how is your processing plant
better than donations. When you can teachaffecting the water in dams etc, How is the
someone how to own a fish pond and not giveatmosphere underground affecting the safety,
them fish then you have empowered them.health and environment your employees work
People feel better when they have control ofunder.
their own lives.Equality - In organizations this is a major issue.
Entrepreneur - This is a person who sets up aThere is no religion, race, gender or tribe that
business or businesses. This is someone who isshould have better access to employment or
enterprising, always making sure he/she is makingother privileges based on their group attributes.
profits and multiplying the money on hand. WhenGender sensitivity will ensure you give equal
a nation has many entrepreneurs it becomesopportunities to both male and female even in
very productive. It attracts the buyers fromareas that have previously been male dominated.
other nations earning valuable revenue whichErgonomics - This is the study of people's
boosts the well being of the particular nation.efficiency in their working environment. There is
Entrepreneurs are therefore the backbone of anyway of sitting on a desk when using a computer
economy. Many people get an education so thatwhich does not bring injury or strain to the body
they become workers while others work so thatparts such as neck, arms etc. This recommended
they become employers as well. For as long assitting posture helps individuals to be efficient at
you carry the mindset of a worker you will bewhat they do. Always strive as a leader to
subject to the entrepreneur.establish what the working environment should be
Equity - It can refer to the value of a mortgagedthat can help to maximize the input from your
property after deduction of charges against it orteams
the value of shares issued by a company. AEthics - These are moral standard and principles
company issues shares on the market to raiseby which the business is run. Business ethics is
money to expand the operations. Once someonehaving a moral compass when leading teams
buys shares or equity from a specific companywithin a corporation setting. Corporate governance
they become a shareholder. The more shares oneis another term used to emphasize the fact that
gets, the more power to make influential decisionsbusinesses should be run without chaos. There
on the company.should be separation of duties in all areas, checks
Evaluation - This is a system used to assessand balances, clarity of roles and expectations and
feedback or progress a product is making on aa general guide on how to deal with the diverse
specific market segment. In any company there issituations faced by leaders in business. People
need for continual review and revisiting andwould rather deal with an ethical, transparent and
evaluation of processes, systems, products andtrustworthy business which may actually be
the people. With no clear monitoring and evaluationexpensive compared to a cheap, unethical
of systems, the company or organization cannotbusiness where anyone does what they feel like
measure its reach, effectiveness and efficiency.doing.