ch 19 Flashcards
What needs to be considered when running, developing and expanding a business?
Financial management –> cash flow, chasing debts
-Administration –> pay staff/taxes, chase invoices
-Marketing –> methods of advertising, market research, launching new products
- Purchasing –> develop relationships with suppliers
-Managing people –> recruitment, selection, training motivation
-Production –> monitor processes and quality, health and safety
As the business grows the entrepreneur will take on the role of leader and hire specialist to deal with the various departments e.g. finance
What are the benefits to having Intrapreneurs employed in product development?
driving innovation can help you get a competitive advantage
helps meet actualization needs
you can win awards, help with PR e.g. Queen Award for Enterprise
Individuals can experiment the cost of failure
What are some barriers to Entrepreneurship?(ppq)
Lack of finance
Lack of entrepreneurial capacity –> the range of skills needed
Becoming an employer –> have to pay them, sick leave, health and safety, NI, training , Maybe unreliable
Legal barriers (red tape) –> complying with legislation relating to employment, the environment, consumers, corporate governance, health and safety, taxation, property rights and competition costs money and diverts an entrepreneurs
Lack of ideas
Fear of failure
What risk would a entrepreneur anticipate to occur?
They have left their secure jobs,
they may have large orders which don’t come to anything –>do a credit check on buyers before hand to reduce risks
To reduce risk, rather than doing a big launch, test your product in smaller areas
decision trees is a way of using quantitative technique
Entrepreneurs know with more risks, there is more reward, but also possible loses
Trying to launch a product aboard with different cultures/laws/tastes could lead to a product flop
can reduce risk by test marketing
investing there own start up capital in the business in the begining
uncertainty
More of a problem for entrepreneurs
Example - due to Brexit –> many businesses unlikely to invest in-growth whilst they dont know the full impact
To prepare - you can always set aside contingency fund, Or also do SWOT and/or PESTLE analysis
What is the role of the entrepreneur?
Innovation (how do new ideas come out)
Organizers - from production to operations
Make decisions e.g. source of finance, prices ,wages
risk takers
How do entrepreneurs find business ideas?
Business experience
Personal experience
Skills
Lifestyle choices
Entrepreneurs?
individuals who, typically, set up and run a business and take risks associated with this
what is an Intrapreneurs?
Employees who use entrepreneurial skills , without having to risk their own money, to find and develop initiatives that will have financial benefits for their employer
What are the different stages of setting up a business?
Ideas
Research
Planning
Financing
Location
Resources
Launch
what do Intrapreneurs do?
use entrepreneurial skills to find and develop initiatives that will have financial benefits for their company
they carry no financial risk
