CHAPTER 1 Flashcards
referred to as the creation and the process of innovating different goods and services for the people, society, and for the environment
entrepreneurship
individual who undertakes the risk associated with creating, organizing, and
owning a business
entrepreneur
give 7 skills needed by successful entrepreneurs
communication
human relation
math
problem-solving
decision-making
technical skills
basic business skills
process of starting and running one’s own business. This involves a considerable amount of risk.
entrepreneurship
5 steps of the entrepreneurial process
discovery
concept development
resourcing
actualization
harvesting
discovery
stage in which the entrepreneur generates ideas, recognizes opportunities, and studies the market
what does entrepreneurs should consider in discovery stage?
hobbies or skills
consumer needs and wants
conduct surveys and questionnaires
study demographics
concept development
entrepreneurs prepare these in this step:
developing business plan
detailed proposal describing the business idea
choosing location for the business
is the business online or does it have physical location for customers to visit to purchase products
resourcing
stage in which entrepreneur identifies and acquires financial, human, and capital resources needed for the venture startup
entrepreneurs contemplate the following in resourcing
identify potential investors
apply for loans, grants, and financial assistance
hire employees
actualization
stage in which the entrepreneur operates the business and utilizes resources to achieve its goals/objectives
entrepreneurs prepare this in actualization stage
grand opening of the business
day to day operations of the business
harvesting
stage in which entrepreneur decides on venture’s future growth, development, or demise.
entrepreneurs consider these in harvesting stage
future plans for the business
expansion to additional locations
company to change structure
steps in starting a business
develop a business plan
acquire finances
meet legal requirements
it is a detailed proposal that describes a new business
business plan
two components of a business plan
executive summary
product/service plan
it is the brief one to two page description of the key points of each section of the business plan
executive summary
it presents product or service being offered and the unique features of the product or service
product/service plan
it includes the qualifications of the entrepreneur and qualifications of any partners who may be involved in the business venture
management team plan
it analyzes the: customers/ competition/ industry/ demographic/ geographic and economic data
industry/ market analysis
it includes all processes involved in producing and delivering the product or service to the customer
operational plan
it is the management philosophy of the business, key management personnel, and key employment policies
organizational plan
it describes how the business will make its customers aware of its products/services
marketing plan
