Chapter 1 Flashcards
Organisation that provides goods or services to earn profits.
Business.
Difference between a business’s revenues and its expenses.
Profits.
Profit equation.
Profit = Revenues - expenses
When did awareness of entrepreneurship start increasing in Oman?
After the Saih al-Shamkhat Symposium in 2013.
What was the most important decision Late Sultan Qaboos directed during the symposium?
Supporting young entrepreneurs and developing SMEs through training, technical support, and financial guidance.
What are some of the decisions that were taken in the Saih Al-Shamikhat Symposium to support and enhance entrepreneurship?
- Developing training programmes to boost entrepreneurship culture.
- Establishing the SMEs Development Authority to support small and medium enterprises.
- Mandating entrepreneurship education in all higher education institutions.
- Allocating at least 10% of government tenders to SMEs.
What is GEM short for?
Global Entrepreneurship Monitor
Discuss media and education support of entrepreneurship in Oman.
- Positive perception of starting entrepreneurial ventures.
- Many Omani adults think it’s a good career choice.
- More people have become aware of it since 2019 thanks to the media.
The process by which individuals pursue opportunities without regard to resources they currently control.
Entrepreneurship
The art of turning an idea into a business.
Entrepreneurship
What do entrepreneurs do?
Assemble then integrate all the resources needed, to transform an invention or an idea into a viable business.
What are the resources an entrepreneur needs?
- Money
- People
- Business model
- Strategy
The conceptualization of entrepreneurship at the firm level.
Corporate entrepreneurship.
All firms fall along a conceptual continuum that ranges from … to …
Highly conservative to highly entrepreneurial.
The position of a firm on the continuum is referred to as its …
Entrepreneurial intensity.
What are the two types of firms in corporate entrepreneurship?
Entrepreneurial firms and conservative firms.
What are the characteristics of Entrepreneurial Firms?
- Proactive
- Innovative
- Risk taking
What are the characteristics of Conservative Firms?
- Take a more “wait and see” posture
- Less innovative
- Risk averse
What are the motivations to become an entrepreneur?
- Desire to be the own boss
- Desire to pursue own ideas
- Financial rewards
- Interest and hobbies
- Skills
- Continue a family tradition …etc
Why is there a need to study entrepreneurship?
- Think bout the economic change and social change
- Job generation or self-employment
- Encourage innovation and creativity
- Increase productivity …etc
The entrepreneur’s belief that the business will positively influence people’s lives results in…
Passion for the business
What are the characteristics of a successful entrepreneur?
- Passion for the business
- Product/customer focus
- Tenacity despite failure
- Execution intelligence
What are some general characteristics of successful entrepreneurs?
- Creative and innovative
- Risk taker
- Ambitious
- Visionary
- Flexible
- Confident
- Updated
- Open-minded
Why is the failure rate high for entrepreneurs?
Because they’re typically trying something new.
What does tenacity mean in entrepreneurs?
Their ability to persevere through setbacks and failures.
The ability to fashion a solid business idea into a viable business.
Execution intelligence.
A person’s conscious state of mind that directs attention, experience, and action toward initiating a business venture.
Entrepreneurial intentions.
The first step in the process of new venture creation is…
Entrepreneurial intentions.
Why did the decline in entrepreneurial intentions happen in 2019?
- Pandemic
- Ukraine conflict
- Rising start-up costs
- Shift in preference: Young people now favour stable jobs
- Fear of failure
Situations in which new goods, services, raw materials, and organizing methods can be introduced and sold at greater than their cost of production.
Entrepreneurial opportunities.
Skills, knowledge, and abilities that enable individuals to create, identify, and exploit entrepreneurial opportunities and manage their ventures effectively.
Entrepreneurial capabilities.
The general cultural and societal acceptance and support for entrepreneurial activities, including the perception of entrepreneurship as a viable and respected career option.
Entrepreneurial Societal Attitudes.
The networks and relationships that entrepreneurs form with others, including mentors, business partners, and stakeholders, which can provide support, resources, and knowledge for entrepreneurial success.
Affiliation.
A psychological barrier where individuals avoid engaging in entrepreneurial activities due to the perceived risks of financial loss, social embarrassment, or personal disappointment
Fear of failure.
Newly established businesses typically focused on bringing innovative products or services to the market, often with high growth potential.
Startups.
Businesses whose personnel numbers fall below certain limits, often defined by factors such as number of employees or turnover.
SMEs.
The process of identifying and pursuing innovative solutions to social problems, with the primary aim of creating social value rather than profit.
Social entrepreneurship.
Business practices that promote long-term environmental, social, and economic sustainability, ensuring that entrepreneurial ventures contribute to sustainable development.
Entrepreneurship sustainability.
The creation of ventures that prioritise environmental sustainability and develop products or services that reduce environmental impact.
Green entrepreneurship, or eco-entrepreneurship.
Creating new ventures in a cost-effective and iterative way, using minimum viable products (MVPs), customer feedback, and rapid experimentation to refine business models and products.
Lean startup.
A form of self-employment in which individuals provide services or expertise to clients on a project or contract basis, often without being tied to a single employer.
Freelancing.
Entrepreneurial activities that leverage digital technologies and platforms to create, market, and distribute products or services, often in the digital economy.
Digital entrepreneurship.
What are the types of entrepreneurship.
- Startups
- SMEs
- Social entrepreneurship
- Entrepreneurship sustainability
- Green entrepreneurship
- Lean startup
- Freelancing
- Digital entrepreneurship
Common myths about entrepreneurs.
- Entrepreneurs Are Born, Not Made.
- Entrepreneurs Are Gamblers
- Entrepreneurs Are Motivated Primarily by Money
- Entrepreneurs Should Be Young and Energetic
- Entrepreneurs Love the Spotlight
What factors influence whether someone becomes an entrepreneur?
Environment, life experiences, and personal choices.
Where did the idea that entrepreneurs are gamblers originate from?
Because:
- Entrepreneurs deal with more uncertainty.
- They take moderate risks to achieve ambitious goals.
Are entrepreneurs motivated primarily by money?
They do seek financial rewards but money is never the primary goal, in fact it’s more of a distraction.
Is entrepreneurship limited to a specific age group?
No, it’s fairly evenly spread out over age ranges.
What qualities do investors prioritise and value in entrepreneurs?
They value experience, maturity, and track record over energy.
Which age group has more advantage in entrepreneurship?
Older people.
Do entrepreneurs enjoy public attention?
Most of them don’t.
What’s the age group with the highest business owner percentage?
45-54 year olds.
The driving forces behind individuals’ decisions to create and grow their businesses.
Entrepreneurial motivations.
What shapes entrepreneurial motivations?
- The desire for autonomy
- Financial independence
- Achievement
- Innovation
What are the top entrepreneurial motivations for Omanis?
- Making a difference
- Building wealth
- Continuing a family tradition
- Earning a living because jobs are scarce
What is the no.1 entrepreneurial motivation for Omanis?
Earning a living because jobs are scarce.
What are the types of Startup Firms?
- Salary-Substitute firm
- Lifestyle firms
- Entrepreneurial firms
- Freelancing (Gig work)
Firms that basically provide their owner a similar level of income to what they would be able to earn in a conventional job.
Salary-substitute firms.
Firms that provide their owner the opportunity to pursue a particular lifestyle, and make a living at it
Lifestyle firms.
Firms that bring new products and services to the market by creating and seizing opportunities regardless of the resources they currently control.
Entrepreneurial firms.
Workers with temporary, short-term work (or ‘gigs’) obtained from companies by searching out opportunities on smartphone-based apps.
Freelancers or gig workers.
Which gender is more likely to start a business?
Males.
What’s an evidence that women-owned businesses are increasing?
According to GEM, both males and females are equally involved in entrepreneurial activities.
What’s a part of the reason why millennials in Oman are highly interested in entrepreneurship?
Due to difficulties finding jobs in the public and private sectors.
What’s the highest active entrepreneurial age group in Oman?
The 25–34 age group is the most active in entrepreneurship, followed by 55–64.
What is one of the factors that encouraged millennials to consider entrepreneurship?
Over 30 colleges and universities in Oman offer at least one entrepreneurship course.
The process of creating something new, which is central to the entrepreneurial process.
Innovation.
Which type of firms are more productive in terms of patents per employee?
The small innovative firms.
Why is entrepreneurship important for Oman vision 2040?
- Job creation
- Economic diversification
- Transfer economy to Knowledge-Based Economy
- Increase productivity and bring new technology
What sectors are being promoted to reduce reliance on oil?
Tourism
Logistics
Services
Energy
Agriculture
Fisheries
Recycling
What are Oman’s economic diversification goals by 2040?
To boost non-oil sector contributions to GDP.
Increase SMEs contribution to 30%.
What are the entrepreneurial firms’ Impact on society?
They:
- Provide new products and services make life easier.
- Enhance workplace productivity.
- Improve our health.
- Entertain us.
What are the entrepreneurial firms’ Impact on larger firms?
They help them be more efficient and effective.
A scientific tool specifically designed to identify entrepreneurial intention and predict entrepreneurial success.
The entrepreneurial mindset.
What are the four components of entrepreneurial mindset?
- Entrepreneurial creativity
- Opportunism
- Proactivity
- Vision
The ability to generate innovative business ideas.
Entrepreneurial creativity.
The tendency to spot new business opportunities (relates to being alert, informed, and detecting future trends).
Opportunism.
The tendency to be proactive about projects and get stuff done (relates to energy, confidence and self-determination).
Proactivity.
The ability to see the bigger picture, the motivation to bring change and create progress (relates to values and having a higher sense of purpose).
Vision.
