1. Entrepreneurship Flashcards
what is entrepreneurship
having the mindset of identifying business opportunities in the environment, taking risks and engaging in innovation
what does entrepreneurship mean in a business point of view
the ability to identify a suitable business idea and turn in into a profitable business
what are the 4 main factors of production
- Land
- Labour
- Capital
- Entrepreneurship
what is the definition of land
all natural resources including raw materials required for productionw
what is the definition of Labour
The physical and psychological energy used for production is known as labour
what is the definition of captial
all man made resources required for production
give 3 examples for Land
raw material, forests, soil
give 3 examples for Labour
labour of an engineer , labour of a carpenter, labour of a builder
give 3 examples for Capital
buildings, machines, equipment
give 6 characteristics of an entrepreneur
- creativity
- innovation
- being optimistic
- taking risks
- independence
- flexibility
what is the definition of “creativity”
the ability to develop new ideas and discover new ways to solve problems using the available resources
name 4 factors that obstruct creativity
- anticipating instant results
- fear of mistakes
- relying firmly on beliefs
- thinking that there is only one solution for a particular issue
not acting on a logical basis, following rules and traditions ignorantly and thinking that there are barriers to be practical are all barriers which obstruct which characteristic of an entrepreneur?
creativity
name 4 methods of improving creativity of people
- accepting failures
- encouraging curiosity
- appreciation of creativity
- Absorbing diversity
what is the definition of innovation
the ability to produce a new product or service
what are the 4 types of innovation
- a new invention
- extension of a core product
- duplicating
- combination
- creating a new product or service whihc didnt exist before ( aeroplane, telephone, camera)
- add a new usage to an existing product ( electric train, non fat milk, smart phones)
- creating a new product similar to an existing concept (delivery of bakery items such as the mobile distribution of ice cream)
- using a combination of existing factors to produce a new item (vesak lantern using LED bulbs)
what are 4 examples for basic sources of innovation
- unexpected events
- process requirements
- changes in the market
- concepts based on knowledge
changes in demography and lifestyle, change of perception or understanding are examples for….
basic sources of innovation
what is the main reason for risk
uncertainty
what is the relationship between risk and profit
high risk - high profit
low risk - low profit
briefly explain “future vision”
the dream that is expected to be realized in the future
future vision,
sensitivity towards the environment,
possessing the confidence that success depends on their own ability,
tendency towards reaching difficult objectives
the above statements are examples of…
characteristics of entrepreneurship
define “ sensitivity towards the environment”
being aware of the changes in the environment
define “being optimistic”
thinking positively and and accepting failures in a postive way
Air pilot jessica cock shows which characteristic of an entrepreneur
possessing the confidence that success depends on their own ability.
jessica cock was handless but she focused on what she could do and became successful in achieving her goal of becoming a pilot
“I have not failed, i have just found 999 ways that a light bulb won’t work” was a quote by whom? what characteristic of an entrepreneur does this statement show
Thomas Alva Edison. Tendency towards achieving difficult objectives
define “flexibility”
the ability to adapt to environmental changes
what are the 6 common characteristics of entrepreneurs (not basic characteristics)
dedication
common sense
self motivation
self confidence
seeking information
strong desire
dedication - working to achieve objectives by putting personal needs aside
common sense - ability to understand the effects of environmental changes
self motivated - entrepreneurs dont need other people to persuade the, to complete their tasks
self confidence - an entrepreneur is confident in his abilities and capabilities
seeking information - an entrepreneur is vigilant regarding new trends and changes in his business.
strong desire - every entrepreneur has a strong desire to achieve his objectives
