AOS 1 Flashcards
Reasons for Starting a Business
Desire for financial and personal independence, making a profit, fulfilling market or social needs
Innovation
The process of creating new products or improving existing ones to meet consumer needs
Seeking Growth
Involves expanding the business by exploring new products and approaches
Entrepreneurship
The process whereby a person creates and operates a new business, usually in response to opportunities, while taking on the risk of the venture in the hope of making a profit
Pursuing Business Opportunities
Seizing gaps in the market to create goods or services that benefit consumers
Government Financial Support
Provided through grants, tax incentives, and direct funding for R&D
Feasibility Study
Assessment of a business idea’s potential for success, considering market, operations, and commercial feasibility
S.M.A.R.T
Specific, Measurable, Attainable, Relevant, Time-bound
Business Concept Development
Realization of product unavailability, original idea, or innovation
Financial Goals
Making a profit, increasing sales, market share, business expansion, maximizing return on investment, improving business operations
Personal Goals
Increasing income, improving financial security, gaining business-related skills and knowledge
Social Goals
Community service, employment provision, social justice, ecological sustainability
Importance of Goal Setting
Provides a clearly defined purpose and allows measurement of results
Business Mentor
Experienced guide offering knowledge, advice, and wisdom to less experienced business owners
Entrepreneur Characteristics
Shared vision, initiative, and innovation in adding new products or improving existing ones
Decision Making
Identifying options and choosing a specific course of action
Market Research
Gathering and analyzing information about a specific market to determine market conditions
Intellectual Property
Creations of the mind that can be protected by trademarks, patents, copyrights, design rights, and domain names
Formal Mentorships
Structured mentor sessions provided by the government or not-for-profit organizations over a long period
Informal Mentorships
Flexible, short-term mentorships provided by any business manager or entrepreneur
Sources of Business Opportunities
Innovation, market opportunities, changing customer needs, R&D, technological development, global markets
Business Manager Characteristics
Runs the business to ensure profit, minimizes risk, will know if they business idea will be successful or not and has problem-solving ideas
Economy
System focusing on what to produce, how to produce, and for whom to produce goods and services
