Chapter 1 Flashcards
Entrepreneurs
People who have the ability to identify and sieze an opportunity. They create and develop a business by adding value to it by adding resources such as time and effort.
They are the people who are willing to take risks and through their business they organise, manage and achieve results
Entrepreneurship
The process of establishing a business; From the identification of a business opportunity and innovation to planning, managing and growing the business
A true entrepreneur
Habitually creates and innovates to build and develop something of recognizable value
Gross Domestic Product (GDP)
The total production of a country .
It is the total number of products and services supplied and produced within the borders of a country
The growth rate of the GDP is an indication of how successful a country is ‘
Small / Micro enterprises
-They’re managed by 1 person whose aim is to grow and develop the business
Small Business Manager
Once an entrepreneur becomes comfortable and satisfied with the level of growth they stop being an entrepreneur and become a small business manager who is opposed to risk, change and innovation
A small business manager must be able to
-Ensure interpersonal and inter-group competence
-Organise efficient operation of tasks
-Plan, organise, lead and control business functions
-Facilitate formal communication during scheduled meetings
-Compile and implement necessary policies and procedures
Types of entrepreneurial businesses
-Informal
-Micro
-Very Small
-Small
-Medium
-Large
Micro business
A business with less than 5 employees with a turnover of up to R100 000 per anum
Small Business
A business that employs 11-50 employees
Very small business
A business that employs 1-10 employees
Medium Business
-A business that employs 50-200 employees.
-It is highly formalised and requires special professional expertise, management and an entrepreneur/entrepreneurial team
Corporate entrepreneurship/Intrapreneurship
-It is the creation of a business/businesses within an existing large business by using new ideas and exploiting opportunities and using the resources of the existing business
-It allows large businesses to adapt to the changes in the market and diversify
-Occurs when a business is created within an existing business but with products and services that differ from the original business
Franchising
An arrangement in which a person/business grants an independent party the right to sell the products and services of the business according to guidelines set by the franchisor
-The franchisor retains control over the conduct of the business and offers the franchisee a comprehensive business package
The franchisor
Entrepreneur
The franchisee
Corporate entrepreneur
Key success factors of entrepreneurs
-Skills, expertise, aptitude
-Personal qualities
-Management skills
-External factors
The strengths and weaknesses of entrepreneurs can be remedied by
-Personal development
-Attending courses
-Appointing staff
Skills
Manual work that can be learned
Expertise
They are based on the knowledge you acquire.
They are acquired by studying/experience
