Chapter 2: Entrepreneurship Flashcards
What is an entrepreneur?
An entrepreneur is a person who is able to spot an opportunity or gap in the market and takes advantage of the opportunity to start a business.
Push factors?
- Unemployment
- Job security
- Can’t find job
- Disagreement with employer
Pull factors?
- Independence
- Recognition
- Self actualization
- Personal employment and wealth.
Entrepreneurial Characteristics?
- Opportunity seeking
- Creativity/Innovation
- High risk tolerance
- Determination
- Self reliance
- Flexibility
- Motivation
Types of Entrepreneurs
1. Techno Entrepreneur?
Looks for ways to develop technology or use tech to grow their business.
Social Entrepreneur?
Start ventures to solve problems. Eg, NGOs.
Tourism Entrepreneur?
Offers goods or services to attract tourists.
Environment Entrepreneur?
Create ventures to solve environmental problems Eg. Selling solar panels.
Types of new entrepreneurs
1. Emerging Entrepreneurs?
Entrepreneurs who have previously been disadvantaged.
- Informal Entrepreneurs?
Operate in the informal sector.
- Youth Entrepreneurs?
Young business owners.
Paths to Entrepreneurship?
- Starting a new business
- Buying an already established business
- Buying a franchise
- Family Business
The entrepreneurial process?
- Identify opportunity
- Access resources required
- Develop business plan
- Manage business venture
Feasibility and Viability?
Feasibility: is the idea workable/ can it be implemented
Viability: does the idea have the potential to generate sustainable profit?
Ways to obtain the competitive advantage?
-Price
-Customer convenience
-Experience of the customer
-Product differentiation
-Time
