Chapter 1 - Introduction

Question 1

Define Entrepreneur

Someone who starts _______ and assumes __________.

Answer 1

Someone who starts a business with an original idea, and assumes its associated risks and responsibilities.

Question 2

Why be an entrepreneur?

Answer 2

• Independence and Control
- the boss that makes decisions and controls the use of resources.

• Satisfaction and Self-esteem
- Make business out of Hobby, skill/interest > satisfying exciting fulfilling

• Financial Rewards
- The sky’s the limit > no cap on earnings

Question 3

Why NOT TO BE an entrepreneur?

Answer 3

• Financial insecurity and financial loss

• Salaries & Benefits not guaranteed
• Possible loss of capital investment and even personal wealth

• Long hours of hard work
- no pre-determined working hours

• Opportunity cost
- opportunities you give up to start your own business

Question 4

Main ingredients of successful entrepreneur

Answer 4

Habits of mind

Question 5

Main skill sets of a successful entrepreneur

Answer 5

• Business skills
  • Strategic thinking, be able to sieve out opportunities
• Management skills
  • Manage staff, handle operations
• Selling skills
  • Market products and company
• Technical skills
  • Related to field of e.g web designer -> computer-related skill

Question 6

A free-enterprise economy _________________________.

This economic system is also known as _____

Answer 6

supports entrepreneurship as it is based on voluntary exchange.

capitalism

Question 7

Impacts of free-enterprise

Answer 7

• Business failure
  due to wastage of resources
• Profits
  arising from efficient use of resources to meet needs & wants
• Competition
  leads to better value / offering for customers

Question 8

Traditional viewpoint of starting a business is about ____

Answer 8

Making profits

Question 9

2 other common entrepreneurship options are:

Answer 9

Social Entrepreneurship & Green Entrepreneurship

Question 10

Social Entrepreneurship refers to a business that aims to achieve _________ and _________.

It may also include a business that adopts __________ towards ________.

Social entrepreneurs strive to _____ and ______________.

Answer 10

profitability, social returns.

entrepreneurial approach, social problems.

create, sustain social value

Question 11

Green Entrepreneurship refers to a business with _________ that _________ or _______ to the environment.

Answer 11

enterprise activities, protect, reduce harm

Question 12

Definition of Business Opportunities

Answer 12

An idea that is based on what consumers need or want.

Question 13

4 characteristics of business opportunities:

1) It is ____ to customers.
2) _____ i.e. it will ____
3) It should be ________ that exists.
4) Availability of / Access to ___________ to create the business.

Answer 13

1) attractive
2) Situational, work in your business environment
3) executed in the window of opportunity
4) Resources and skills

Question 14

The 5 roots of opportunity in the marketplace are:

Answer 14

1) Problems - what issues business can solve?
2) Changes - In law, situation or trends
3) Inventions - totally new product & services
4) Competition - Consider improving on price, location, quality, reputation, reliability, speed, etc to be better than competitors.
5) Technological advances

Question 15

A business plan is a ____________ and _________.

Answer 15

document that thoroughly explains a business idea, how it will be carried out.

Question 16

A business plan helps entrepreneurs to:

• Organise _____ before ____
• Guide ____ of _____
• Raise _____ from ______

Answer 16

• their thoughts, starting a business
• operations, the business
• money