chapter 1 Flashcards
what is an enterprise?
an organization or business managed by one or more individuals who are able to take the initiative to maek decisions and takek calculated risks
what is a business enterprise?
an enterprise that has profit as its main aim
what is a social enterprise?
an organization that is started for social cause for the betterment of society
what is an entrepreneur?
a person who starts up a new business or enterprise
what is a stakeholder?
an individual, group, or organization with an interest in the activities of a business
describe risk taking
entrepreneurs will recognize the risk of failure but will take a calculated risk with the possibility of high returns
describe decision making
entrepreneurs should make sure they use the available resources in the best way possible - so they have to make wise decisions
decision making always involves risks
describe innovation
innovative entrepreneurs will spot opportunities for enterprise in existing products/services by rebranding or presenting it in a different way
why is a positive attitude important?
it is what drives entrepreneurs towards taking risks and facing and overcoming challenges
how are employees a stakeholder?
employees are the people who work in the business, to keep them happy and productive an enterprise must give them fair wages, job security, and good working conditions
how are owners/shareholders stakeholders?
they invested in the enterprise, so they want the business to grow and make profits
healthy profits are important to attract more similar stakeholders
how are customers stakeholders?
it is important for an enterprise to satisfy customers - they generate revenue for them by buying products/services
you need to provide good quality products and services at a good price to have a stable customer base
how are governments stakeholders?
everyone has to pay taxes - in order to be law abiding an enterprise should follow all tax, labor, + environmental laws
the government of a country is also interested in employment generated by operations of a business
how is the local community a stakeholder?
they are affected by the impact your business has on traffic poluttion and infrastructure in the area
aim to keep your negative impact to a minimum
how are suppliers stakeholders?
these are the businesses that supply the raw materials/products needed by an enterprise
they should be paid on time to continue recieving supplies
how are lenders stakeholders?
they are the people or organizations that lend money to an enterprise such as banks or financial institutions
it is important to repay them with interest if neccessary to make sure you can borrow from them in the future
how is your competition a stakeholder?
these are the businesses that operate in the same industry providing a similar product to the same market
a business can affect and get affected by its competition - to gain market share an enterprise can set markeeting and pricing strategies in line with or better than their competition
what is the enterprise process?
the various stages involved in starting and running an enterprise
describe the steps involved in the enterprise process
- identifying the problem/need/want
- exploring creative solutions
- creating an action plan
- implementing the action plan
- monitoring your progress
- evaluating your successes and failures
