Page 267 - Cambridge IGCSE Business Studies
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20: Cash-flow forecasting and working capital
CASE STUDY Shonaquip
Cape Town-based Shona McDonald is a highly successful woman
who has clinched several prestigious awards for entrepreneurship
in the past two years.
Shona founded Shonaquip, a manufacturer of wheelchair
buggies and support devices for disabled children. In the early days
Shona had two people working for her, and they operated out of her
garage.
Today Shonaquip is a well-established and highly regarded
business that builds more than 6,000 wheelchairs a year, and
generates more than US$4m in revenue. The company employs
more than 65 people who help to improve the lives of some of the
many disabled people in this country.
Like all successful South African entrepreneurs, Shona had the
ability to identify the bigger picture and take calculated risks.
Source: Adapted from www.shonaquip.co.za
A child using one of Shonaquip’s wheelchairs
TASK
a Why is Shona McDonald a good example of an entrepreneur?
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b Identify two reasons why Shona needed cash for her business in the ‘early days’.
c Why is working capital important to Shonaquip?
d What factors will determine the length of Shonaquip’s working capital cycle?
