Each mini-entrepreneur holds one or more positions in one or more departments and is responsible for at least one specific task. Depending on the activities and size of the mini-business, tasks from different departments are divided across one or more positions and assigned to one or more mini-entrepreneurs. Regardless of their role, mini-entrepreneurs can of course assist their colleagues in other functions if needed.
Assignment of Positions
Each mini-entrepreneur can apply for one or more positions based on their interests or skills. If agreed upon by the other mini-entrepreneurs, the position is assigned to them. If multiple mini-entrepreneurs vie for the same position, it is recommended to hold a vote (secret or raised hand) to decide the person.
The responsible teacher may also ask mini-entrepreneurs to submit their applications through a job request (CV & cover letter). The teacher and/or the Human Resources Manager can conduct interviews with candidates to determine the best profile for the position.
As the main representative of the mini-business, the Managing Director is responsible for the smooth running of the team and acts as an intermediary. Essentially, they are the “leader” of the mini-business. The Managing Director ensures that all the young entrepreneurs receive and discuss the information and messages they receive from different sources. Their main tasks are as follows:
A “Leadership” training is available in the “Webinars and Training” section.
The following tasks are the responsibility of the general secretary:
The tasks of the commercial department vary throughout the year.
Market Research
Market research helps to understand the external environment in order to adapt marketing strategies (pricing, promotion, etc.).
Sales Strategy
Mini-entrepreneurs must find markets for their products and try to sell them outside of their circle of acquaintances: group sales, bazaars, markets, open houses, online, etc. Marketing their products through established businesses is also an alternative. To do this, they must also plan an attractive point of sale (booth). A “Customer Service” training will be organized in January.
Advertising
Advertising is crucial for ensuring the commercial success of the mini-business. Whether it’s “flyers” distributed at (or outside) the school, posters, gadgets, or a website, all these tools aim to draw attention to your product, sales event, etc.
Website and Social Media
The website and social media are nowadays almost essential tools for promoting the business to the outside world. Presenting your business, its structure, collaborators, and especially your product without borders to the world makes the “homepage” and social media presence powerful and indispensable communication tools. Please regularly update your mini-business information on the website www.jel.lu. A training on using social media will be organized in January.
Press
Relations with the press are coordinated by the association Jonk Entrepreneuren. Please inform the association every time you plan to invite the press to one of your events. Be sure to send the results (articles, photos, videos, etc.) to Jonk Entrepreneuren for archival purposes and don’t forget to mention Jonk Entrepreneuren in your articles.
The Technical Department, responsible for production, has the following tasks:
Technical Study
The technical department is responsible for developing the product (in close collaboration with the commercial department, which conducts market research to adapt the product to customer requirements) by preparing one or more prototypes.
Negotiations with Suppliers
In general, the technical department is in charge of identifying the best suppliers and negotiating favorable contract terms (price, delivery times, quality of supplied products, etc.), in close collaboration with the financial department. The technical department then places orders and ensures that the order conditions (delivery times, prices, returns of unused goods by the supplier, etc.) are confirmed in writing. In general, make sure to order realistic quantities in line with your sales goals, especially when it comes to perishable goods.
Organizing Production
The technical department organizes production. Production typically involves all the young entrepreneurs. It is the responsibility of the technical department to ensure product quality and workplace safety.
Inventory and Stock Evaluation
The technical department keeps a permanent inventory of stock, in collaboration with the financial department. To do this, they open an inventory book for each type of stock (raw materials, supplies, finished products…) and for each item of stock (examples: rings, chains, keychains, etc.).
The tasks of the Human Resources department are summarized as follows:
Salaries
Mini-businesses are required to establish a compensation system for work done outside of class hours. Based on very low hourly rates (between €0.50 and €2.00 per hour) and the attendance register, the HR department calculates the remuneration owed to mini-entrepreneurs. Salaries are calculated at least twice during the life of the mini-business, with each mini-entrepreneur receiving their individual salary statement. Salaries must be calculated and recorded, but they can only be paid at the end of the school project.
Jonk Entrepreneuren offers salaries between €0.50 and €2.00 per hour (gross) for hours worked outside of school hours. These gross hourly rates take into account the small size and lower productivity of mini-businesses. A note will be sent by email in due course. All hours of production and sales should generally be recorded. However, it is recommended to only pay for hours worked outside of class hours to avoid putting the mini-business in financial difficulty. Social security contributions and taxes owed must be calculated and recorded as liabilities in the balance sheet.
Note: Social and tax liabilities do not need to be paid to the association or any other organization; it is suggested to settle the debt at the end of the mini-business’s life by crediting the “Exceptional Products” account (if keeping complete double-entry accounting).
The financial department is responsible for the following activities:
Daily Accounting Records – FOR COMPLETE ACCOUNTING
Accounting is kept based on supporting documents (invoices, receipts, bank statements) recorded in the accounting journals. All accounting documents must be filed and recorded. Using these documents entails certain obligations to be met:
Accounting Obligations Regarding Purchases for the Mini-Business
For each purchase, request an invoice from the supplier or an equivalent document in the absence of an invoice. Always ask for a receipt or, preferably, an invoice for each purchase. Each invoice or receipt must indicate the VAT amount. If the VAT amount is not specified, it must be determined using the VAT rate tables (www.aed.public.lu/tva/taux/index.html). Documents related to purchases should be filed and numbered in chronological order.
Accounting Obligations Regarding Sales
Sales must be recorded with a sales invoice issued in duplicate; the original is signed and given to the buyer, while the copy is filed. For made-to-order products, mini-entrepreneurs can ask customers to fill out an order form and attach a delivery note signed by the customer when delivering the products. In case of counter sales (group sales, markets, etc.), it is not mandatory to provide an invoice to the customer. However, it is recommended to give the customer a receipt. All sales must be recorded in the cash book. We recommend using a separate page for each day of sales. This document serves as the basis for preparing the accounting records.
The turnover of a mini-business must not exceed €50,000. If forecasts indicate the possibility of exceeding this threshold, it is essential, from a tax perspective, for the young entrepreneurs to inquire about creating a legitimate company (S.à.r.l, …).
Cash Book
Each mini-business must maintain a cash book that records all cash transactions. This is a ledger where both the cash inflows and outflows are documented, with the reason for the transaction and the name of the recipient. Cash movements often cause issues within mini-businesses.
For practical and security reasons, it is highly recommended to keep only the minimum amount of cash in the cash register and deposit the rest into the business’s bank account.
Bank Account
Bank statements received regularly should be filed in chronological order. The transactions listed on the statements are recorded in the accounting system.
The accounting can be carried out according to the methods taught in class. Mini-entrepreneurs have the following options:
The association encourages mini-entrepreneurs to maintain double-entry bookkeeping, which includes a Journal, General Ledger, Profit and Loss Statement, and Balance Sheet.
Mini-entrepreneurs who are familiar with accounting software, such as Gesall (featured in official schedules and programs), may use this option for their accounting.
It is important to emphasize that keeping a complete, honest, and accurate accounting system is crucial for demonstrating sound management during the fiscal year, particularly during the dissolution meeting. Entrepreneurs with no accounting experience are advised to contact Jonk Entrepreneuren for assistance.
Cost Price and Break-Even Point
The cost price refers to the total of all expenses necessary to produce, sell, and deliver one or more products (or services), either in their original form (commercial company) or after being transformed (industrial company). It includes all costs related to a product or service at the final stage of production and commercialization, including labor costs.
The break-even point is the revenue the company must generate to cover all its costs without making a profit or loss (break-even point). This can be calculated by dividing the break-even revenue by the sales price excluding VAT, which gives the number of units that need to be sold to reach financial balance.
Value Added Tax (VAT)
Neither Jonk Entrepreneuren nor the mini-businesses are subject to VAT. A mini-business cannot charge VAT to a customer (it does not have a VAT identification number). Therefore, every issued invoice must be presented without mentioning VAT.
However, to avoid competitive distortion and align with the actual economy, mini-businesses calculate a fictitious VAT, which only applies to their dealings with Jonk Entrepreneuren. Mini-entrepreneurs prepare and submit a simplified VAT declaration for the Mini-Business Forum submission. The calculated VAT is recorded as a tax liability in the accounting, though the amount is not to be paid to Jonk Entrepreneuren.
Note: As with social security contributions and salary taxes owed, we propose settling the debt at the end of the mini-business by crediting the “Exceptional Income” account. See the “Accounting” document.
The department is responsible, in close interaction with other departments, for the following tasks:
Resources
For additional information (documentation, interviews, presentations, discussions, etc.) about sustainable development, you can directly contact the Oekozenter Pafendall asbl at meco@oeko.lu. The Ecological Center has advisors specializing in eco-friendly products for households, energy-efficient use, ecological construction, climate protection, mobility, and sustainable agriculture practices.
Sales and E-Commerce
Sales events in collaboration with our partners are suspended until further notice.
We are currently working on establishing an e-commerce platform in partnership with Letzshop.
