cHAPTER 1 Flashcards
Define An Entrepreneur.
An entrepreneur is someone who can seize an opportunity and develop a business by adding value to the business by applying resources and taking risks to achieve results.
Define Entrepreneurship.
Entrepreneurship is the process of establishing a business from a business opportunity and innovation through to planning, start-up, managing, and growing the business. It is a discipline of its own.
Similarities between entrepreneurship and small business management.
They both start as small enterprises that are managed by one person to grow.
Once satisfied with the growth of the business, they become a small business manager.
The danger at this stage is that the entrepreneur has good ideas but insufficient expertise to implement ideas.
What are the roles of a small business manager?
To Plan, Organize, Lead, and Control the business functions.
Organizing efficient operation of tasks.
Ensuring interpersonal and inter-group competence.
What are the types of entrepreneurial businesses?
Micro business
Small Business
Medium business
Large Business
Corporate Entrepreneurship
Characteristics of a micro business.
It is a business with one or fewer employees with up to R100 000 P.A turnover.
Characteristics of a small business.
A business with between 11 and 50 employees.
Characteristics of a medium business.
It is a business that employs between 50 and 200 employees, is highly formalized, and requires professional expertise.
Definition of corporate entrepreneurship/intrapreneurship.
It is the creation of a business within an existing large business by using new ideas and opportunities, and the existing business’s resources.
Characteristics of corporate entrepreneurship.
Allows large businesses to adapt to changes in the market. (diversification)
Define franchising.
It is the process whereby a business grants an independent party the right to sell the business’s products or services.
What are the skills of an entrepreneur?
The manual work that can be learned
What is the expertise of an entrepreneur?
Expertise is based on the knowledge you acquire by studying or experience.
What is the aptitude of an entrepreneur?
Aptitude is one’s natural ability or potential to learn and perform in a certain area.
What are the important characteristics of entrepreneurs?
Perseverance - confidence in themselves and their business
Commitment to the business - dedication of skills and resources to establishing and growing the business.
Involvement in the business - performing tasks themselves and communicating well with staff and others in the business.
Taking Risks - taking calculated risks
Creativity and Innovation - one’s imagination and use of creative abilities
Positive Approach - learning from failures and being realistic
