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chapter 1 Flashcards

1
Q

entrepreneurship

A

-entrepreneurship is generally considered to refer to 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.
-may involve the entrepreneur investing their time, money or skills into launching and managing the business.

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2
Q

ENTREPRENEURSHIP
persuing business oppertunities

A
  • gaps in the market, changes in customer needs, technological developments or changes in global markets.
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3
Q

ENTREPRENEURSHIP
innovation

A

-change, improvement and/or transformation.

-Innovation is frequently used by entrepreneurs as a source of business opportunity — to meet the needs and wants of customers or to take advantage of change.

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4
Q

ENTREPRENEURSHIP
seeking growth

A
  • seek new trends, explore new products and new approaches so that the business increases in size. — Growth is necessary for the survival of a new business.
    -Becoming bigger would be expected to lead to increasing sales and market share, and greater profit
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5
Q

The personal motivation behind starting a business:
-financial independance

A

-Establishing a business means that they will not have to rely on an income from an employer or be dependent on other people to pay for living expenses.

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6
Q

The personal motivation behind starting a business:
-personal independance

A

-not wanting to work for another person
- ‘Being my own boss’
- desire the freedom to choose when and where they work, the tasks they undertake, with whom they work and whether to work from home.

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7
Q

The personal motivations behind starting a business

A
  • financial and personal independance, to make a profit, to fufil a market need, to fufil a social need.
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8
Q

market need

A

Market need refers to the products that customers require that may not be available.

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9
Q

social need

A

-This refers to the production or selling of goods and services for the purpose of making the world (or the community) a better place.

examples of typical social needs are:
-providing opportunities for local unemployed people

-developing skills, providing vocational training or lifelong learning opportunities for disadvantaged people in the community

-creating access to a better quality of life for disadvantaged members of the community

-focusing on some sort of environmental need.

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9
Q

Characteristics of successful business managers and business entrepreneurs:
-business managers

A

-A business manager runs a business on a day-to-day basis so that it makes a profit.
-They prefer to minimise risks and make calculated decisions where the outcome is reasonably clear.
-A business manager might have an idea for solving a problem or meeting a need in order to satisfy a target market.

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9
Q

Characteristics of successful business managers and business entrepreneurs:
-Business entrepreneurs

A

-An entrepreneur is generally considered to be a person who is willing to seize opportunities to start and operate a business, and is prepared to take risks in the hope of making a profit.
-Business owners displaying entrepreneurial behaviour will also establish a shared vision and will demonstrate initiative, innovation and enterprise

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10
Q

entrepreneurs tend to have:

A
  • a shared vision, initiative, and innovation and Enterprise.

A SHARED VISION - This gives the business a clear direction. Having a shared vision means that everyone in the business works together, as a team, to develop and then accomplish a goal.

INITIATIVE - They will take the first step in a series of actions or in a process.

INNOVATION AND ENTERPRISE - Innovation is either adding a new product to an existing product line, or significantly improving an existing product or process.
Enterprise is the effort made by someone to creatively or boldly achieve something new.

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11
Q

business oppertunities:

A

innovation, market oppertunities, changing customer needs, research and development, technological development, global markets.

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12
Q

business oppertunities:
-changing customer needs

A
  • changing incomes
  • changing fashions and tastes
  • changing prices of complementary and substitute goods and services.
  • changing population
  • changing expectations about the market, including future prices and incomes.
  • changes in the number of potential customers
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13
Q

business oppertunities:
-global markets

A

-Goods and services are exchanged between businesses and customers across the world.
-This provides opportunities for people seeking ideas for new businesses because it means that the potential business owner can have access to more customers and more sales.

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14
Q

The importance of goal setting

A

-Setting goals can also allow the potential business owner to develop their ideas for a business.
-Setting goals is an important step in helping a business realise its vision of where it wants to be in the future

15
Q

SMART GOALS

A

SPECIFIC- goals should be clear and focused
MEASUREABLE- should be quantifiable
ATTAINABLE- challenging but realistic
RELAVENT- should be worthwhile
TIME BOUND- a deadline or time limit

16
Q

financial goals

A
  1. making a profit
  2. increase sales
  3. increase market share
  4. expand the business
  5. maximising the return on investment
  6. improving the way that the business operates
17
Q

social goals

A
  1. community service
  2. provision of employment
  3. social justice
  4. ecological sustainability
18
Q

personal goals

A

-Prospective business owners usually have a number of personal goals.
-Personal goals for business owners are not normally made public

19
Q

Decision-making in business

A

Decision-making is an important skill for a prospective business owner to have when taking a business idea and making it a reality. Decision-making involves identifying available options and then choosing one course of action from the alternatives.

STEP 1 -develop goals
STEP 2 -outline the facts
STEP 3 -identify alternative solutions
STEP 4 - analyse that alternatives
STEP 5 -choose one alternative and implement it

20
Q

developing a business concept

A

Inspiration for ideas can be generated by:
-listening to people, particularly for ideas on the goods or services people want
-reading magazines and books and researching on the internet
-visiting displays and exhibitions in areas such as new technology or new products from overseas
-accessing government statistics and research information
-identifying a ‘gap in the market’ — that is, a demand not currently being satisfied
-determining improvements that could be made to an existing product.

21
Q

The relationship between business opportunities and business concept development

A

The development of the business concept is when the prospective business owner takes an idea that has arisen from an assessment of possible opportunities, and begins to turn it into an actual business.

bussiness oppertunity — business concept development

22
Q

Protecting a business idea

A

TRADEMARK- (gives the owner exclusive rights for commercial purposes) This is a right granted over a letter, word, phrase, number, sound, smell, shape, logo, picture or aspect of packaging that a business will use to represent it’s products and services.
PATENT- This is a right granted for any device, substance, method or process that is new, inventive and useful.
COPYRIGHT- This is free and automatic protection of original works, such as writing, music, art, films, sound recording, broadcasts and computer programs.
DESIGN RIGHTS- These are rights given to the owner to commercially use, licence or sell a design (logo, branding, packaging, new invention or new technology.)
DOMAIN NAME- A potential owner can register a domain name (the business’s unique address on the internet) so that nobody else can register it.

23
Q

Market research

A

STEP1- Identifying what information is needed to make a decision about the potential of the business.
STEP 2- Gathering the relevant information from appropriate sources. This could involve surveys or interviews, or examining government statistics.
STEP 3- Analysing and interpreting the relevant results to extract some clear information that will assist in decision-making. This analysis can give the potential business owner an idea of the market conditions that exist for the proposed good or service.

24
Q

Initial feasibility studies

A

-an assessment of the market
- a consideration of the operations
-an analysis of commercial feasibility -an appraisal of the potential owner’s management ability
-an understanding of whether others have tried this idea.

25
Q

THE ECONOMY

A

An economy is a system set up to answer 3 questions:
1, What goods and services are produced?
2. How do we produce those goods and services?
3. How are those goods and services distributed?

26
Q

Business contribution to employment and taxation revenue

A

-Employment keeps the economy healthy.
- Businesses also contribute to revenue raised through taxation.
-Not only do they pay tax but their employees pay income tax.
-Taxation is used to provide goods and services that may benefit the whole community, such as a better education system.

27
Q

Business contribution to economic growth

A

-Growth occurs when a nation increases the real value of goods and services over a period of time.

-Business plays an important role in contributing to our overall economic growth by producing a wide range of goods and services.

28
Q

Business contribution to export earnings

A

-Exports refer to the sale of our goods and services in other countries.
-Exporting products overseas contributes to Australia’s balance of payments (BOP).
-A favourable BOP exists when there are more payments coming in than going out.
-Exporting products creates jobs, boosts incomes and improves our standard of living.

29
Q

Business contribution to research and development

A

-Businesses undertake R & D in order to expand their knowledge of products and processes.
-Researchers and scientists undertake R & D in a business to produce new products, improve existing products or develop new processes

30
Q

Business contribution to career and social wellbeing

A

-Providing employment for people offers more than just income, it offers the chance for self-fulfilment and contributes to personal happiness.

31
Q

Business contribution to innovation

A

-Invention and innovation have changed the way we live and improved our wellbeing. Computers, tablets, mobile phones have changed the quality of our life.

32
Q

Business contribution to corporate social responsibility

A

-Corporate social responsibility refers to managing a business in such a way that the broader social welfare of the community, including its employees, customers, suppliers and environment is taken into consideration when making business decisions.

-Customers may choose not to purchase a business’s product if they learn the business is exploiting employees, accepting bribes or polluting the environment.

33
Q

Methods for fostering a culture of business innovation and entrepreneurship in a nation:

-Government investment in research and development

A
  • Governments support businesses to do R & D via direct funding, grants and tax incentives
34
Q

Methods for fostering a culture of business innovation and entrepreneurship in a nation:

-Council grants for new businesses

A

-Local councils may provide grants and funding to start up a new business in their area.
-The objective is to encourage the establishment, growth and retention of innovative, creative and sustainable businesses.

35
Q

Methods for fostering a culture of business innovation and entrepreneurship in a nation:

-Business mentorships

A
  • A business mentor is a person with extensive business experience who offers knowledge, wisdom and advice to a less experienced business manager or entrepreneur.
  • Mentoring allows a business owner to develop skills and abilities in innovation and entrepreneurship for free and at a faster rate than if they were on their own.
36
Q

Methods for fostering a culture of business innovation and entrepreneurship in a nation:

-School-based educational programs in entrepreneurship

A

-Awareness of entrepreneurship can be improved through education and information programs

37
Q

Methods for fostering a culture of business innovation and entrepreneurship in a nation:

-Regional business start-up hubs

A

-business centres provide subsidised premises, advice, services and support to new and emerging businesses to assist to become established and profitable.

business (9 decks)

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