1.5.1 & 1.5.2 Entrepreneurs Flashcards
Business
An organisation that exists to provide goods or services on a commercial basis to customers.
Benefits of Business to society
+ Create employment and develop human capital.
+ Drive innovation through R&D of new products.
+ Pay taxes on profits earned and collect taxes for the government.
+ Create wealth by providing returns on investments.
Enterprise (show)
The skills and abilities to take risks and create profits.
Enterprise
The creation of a business to meet the needs and wants of customers.
Entrepreneur
A person who takes the risk of starting a new business.
Start-up
A new business enterprise, formed by one or more entrepreneurs.
Role of an Entrepreneur
- Spot business opportunities.
- Takes calculated risks in order to gain future returns.
- Acts as a catalyst for the creation and growth of new business enterprises - organise resources.
- Make business decisions.
Importance of business ideas to entrepreneurship
- Solve a problem.
- Offer a better, cheaper way.
- Simple and practical.
- Can be delivered quickly.
- Anticipate trends and exploit growing markets.
Sources of business ideas
- Business experience.
- Personal experience.
- Observations.
- Brainstorming - variables are plotted to identify niches.
- Innovations.
- Budget research: market mapping
Benefits and drawbacks of business experience
+ Insight into the mismatch between customer expectations and supplier delivery.
+ More realistic business plan.
+ Less need for market research.
-The original business would surely be able to do the same as its ex employee.
Benefits and drawbacks of personal experience
+ Insight of an individual consumer could start a new way of doing things.
-A business cannot be built around one customers good or bad experience.
Benefits and drawbacks of brainstorming
+ Could generate a remarkable new innovation.
- ‘Brilliant ideas’ come to nothing if they are not based on understanding the market.
Benefits and drawbacks of budget research: market mapping
+ Research into a market, its segments and its rivals could identify a big opportunity.
-Looking to closely at what exists may lead to unoriginal developments.
Intrepreneurship
Involves people within a business creating or discovering new business opportunities, which leads to the new parts of the business or even new businesses.
- Takes risks.
- Solves problems.
- Understands trends.
- Drives innovation.
How could you encourage intrapreneurship?
- Give employees time outside the confines of their job description.
- Train employees in innovation.
- Reward entrepreneurial thinking and innovation.
- Make risk taking and failure acceptable.
