Chapter 2: Entreperenuership Flashcards
What does “entre “ mean
to enter
What does “prenendre “ mean
to take
What does Entrepreneurship mean
Entrepreneurship as someone entering the world of business to utilize an opportunity to make money
What is an entrepreneur ?
An entrepreneur is a person who is able to spot an opportunity or gap in the market and the collects the neccessary resources in order to take advantage of the opportunity identified to establish a business
What is push factor
refers to the negative conditions or influences that drive individuals away from a situation
Name 3 examples of push factors
Unemployemnt
Job security ( feel safe )
No formal training (cant find a job)
Disagreement with current employer (to start your own business)
What is a pull factor
positive or attractive conditions that draw individuals to a situation.
Name 3 examples of pull factors
Independence
Recognition
Self accoustaion (Maslow hierachy )
Personal employemnet and wealth
What is the unemployment rate
32 %
Characteristcs of an entrepreneur/ entereprenuerial charcterics
Motivation
Flexiablity
Self - reliance
Opportunity seeking
High risk tolerance
Dertamination
Explain the entereprenuerial characteric Opportunity Seeking
seeking new opportunities as they are often not satisfied with the current practices of doing things or products and or services. Seeking Opportunites that will enable them to make profit by finding better ways to satsify the customers needs and wants
What are ways the business can satisfy needs and wants ?
The introduction of a product or service in the market to make consumers aware of a new need
Explain the entereprenuerial characteric Creativity and Innovation ?
Constantly innovate and identify a better and more innovative way of delivering a product or service
Explain the entereprenuerial characteric Risk tolerance ?
Entrepreneur must be willing to take risks
The enterepreur will be taking both a financial and personal risk when starting an enterprenurial venture
Explain the entereprenuerial characteric Determination and presevernce ?
To start a business takes determination ,presevernce and total comintment from the entrepreneur .
success requires the enterepreur to make sacrifices and remain determined and focused on their goals to overcome challenges
Explain the entereprenuerial characteric Self reliance ?
Entrepreur doesnt wait for anybody to tell them what to do , entrepreur is a self starter that is resourceful ,prepared to make a decisions and doenst depend on others for things to get done .
Explain the entereprenuerial characteric Flexiablity ?
Any entrepreneur venture may face a variety of challenges and uncertains and the enterprenur has to be willing and able to adapt current practices to overcome these challenges.Useing management tasks
What are the 3 enterepreneurial venture charcterics
Innovation
Growth Potential
Sound Objectives
Explain the entereprenuerial characteric Motivation ?
Entrepreneur usually have an lotus(internal drive ) of control that motivates them to success .They also have a clear vision their strategies and formulates plan to achieve goals
What is the difference between a business and business venture ?
Business - Profit
Business venture - has the potential to generate a profit and to achieve growth
What does Innovation as an enterpreurial venture chacteristic entail
B- just managing to survive will maintain the status quo and keep offering original good/services
BV- continuously looking for a new and better way to satisfy customers needs and wants
What does Growth Potential as an enterpreurial venture chacteristic entail
B- aims to survive and is satisfied with the current customer base only
BV- always looking for ways to grow by innovating and offering its products /services to a broader target market
What does Sound Objectives as an enterpreurial venture chacteristic entail
An entreprenuerial venture is one that formulates clear on\bjectives and works towards achieving them .E.g entering new markets and developing existing markets by growing the growing the current market share
Name the types of enterprenuers
Techno- entrepreneur
Social -entrepreneur
Enviro - entrepreneur
Tourism - entrepreneur
+3 new enterpreneurs
What are the 3 new types of enterprenuers that have
Youth entrepreneurs (18 -35 years )
Emerging entrepreneurs
Informal entrepreneurs
What’s a techno- enterpreneur
These enterprenuers look for ways to develop technology or use technology to grow their business .Eg Checkers sixty sixty app
What’s a Social - entrepreneur
Entrepreneurs start ventures to solve social problems in society( crime,Unemployement ) - usually NGO’s
What does NGO stand for
Non Governmental Organistaions
What’s a Tourism -entrpreneur
This entrepreneur identifies gaps in the tourism industry and them offers goods or service to attract tourists to the country
Hotels, Sight seeing tours
`What’s the difference between an Entraprenuer and an Altrapreneur
An entrapreneur is an employee who creates a business
Altrapreneur is someone who owns many businesses
What’s an Emering Entrepreneur
term used to describe an entrepreneur who has previously been disadvantaged ( disabled people) - they earn tenders
What’s an Informal Entreprenur
Operates in the informal sector
Don’t pay tax and no fixed location
The informal Entreprenur plays a positive role in he economic development of a country as it creates jobs ,contributes to skills development and even encourages growth
What’s a Youth Entreprenuer
PPE establishes to encourage youth Entrepreneurship . these initiatives assist in training the youth through proactive enterprenurial programs as they also provide necessary resources and ongoing support to these budding entrepreneurs .
What does PPE stand for
Private Public Partnerships
What does NYDA stand for
National Youth Development Agency
( Government focuses on integrating youth through initiatives and programs )
What are the 4 paths to entrepreneurship
1.Starting an new business
2.Buying an already established business
3. Frachise
4. Family Business
True or false : Starting a new business is more costly and risky than buying an already established one
True
What are the aspects entrepreneur has to consider when buying an already established business
- Reasons for the sale of the business
2.Customer base of the business
3.Financial position of the business - The industry the business operates in
5.Contracts the business has already entered - Profitability of the business
- The business form of ownership
- Rental agreements
- SARS requirements
Buying a Franchise
Buying a Franchise means entrepreneur gats a business where the name / brand is already established and successful. Basically buying right to use the name,logo and production system and overall success of the business
What the Franchisor
Sells business to you
What a Franchisee
Buys business from Franchisor
Family Business
High success rate as grown up in business and developed skill throughout the years
What are the 4 steps in the entreprenurial process ?
Step 1- Identifying an opportunity
Step 2- Assessing resources required
Step 3 - Developing the business plan
Step 4- Mangaing the Entreprenurial venture
True or false : Entrepreneur doesn’t find opportunities
FALSE
Entrepreneur must look for opportunities which are attractive and long lasting
What sections does does the business contain ?
TITLE PAGE-This page contains the name of the business ,businesses address ,contact details of business and entrepreneur
TABLE OF CONTENTS - will list the different sections of the business plan with relevant page numbers
EXECUTIVE SUMMARY - looks at each aspect of the business briefly
MARKET ANALYSIS - looks at market business is entering into .It will asses and describe the customers behaviour and patterns as well as relavate competitors
Marketing Plan- details regarding the businesses marketing and promotional statetgies
Financial Plan- This section the business will provide particulars of the income earnings potential of the idea/opportunity - viablity study
Production Plan - gives detail regarding the entreprenurs plans to transform factors of production into goods/ services to sasify customers needs and wants
Oragnaisational Plan-Provides particulars of the necessary positions and skills needed in the business .
Appendix -All Additional but important information ,that add value to understanding the Business plan ( Glossary )
What are the factors that can give a business a competitive advantage
Price
Time
Customer convince
Experience of the customer
Product differntiation
What are the 5 stages of business growth / development
Stage 1: Incubation
Stage 2: Start up
Stage 3 : Breakthrough
Stage 4: Maturity
Stage 5: Decline/ Rejuvation
What happens in the stage of INCUBATION?
This stage is often called the pre birth stage of the business .This is were entrepreneur has identified an opportunity and asses the feastiality and viablity of it and the possible problems that may arise
What happens in the stage of START UP ?
Production and trading will commence during this stage .Some problems may include such as not reaching the breaking point and try and fix them
Which stage are growing pains experienced
Start up stage
What happens in the stage of BREAKTHROUGH?
During this stage of development the rate at which the business will grows increases . Managing breakthrough could be difficult as the business could face a variety of problems such as - cash flow, Labour and skills and delivery /distribution
What happens in the stage of MATURITY ?
This stage is when the business has reached a point where it has established itself in the market , it has a loyal customer base and has captured a share of the market
What happens in the stage of DECLINE/REJUVATION ?
The entrepreneur will need to protect their competitive advantage by constantly looking for methods to design product/services to prevent it from reaching a decline .
