Chapter 2 - Entrepreneurship Flashcards
What is entrepreneurship?
The process of creating and building something of value from practically nothing in the midst of uncertainty and risk and having the determination to succeed against all odds.
How can Entrepreneurs be described as?
1) creative
2) innovative
3) identify opportunities
4) find resources
5) take financial risk
6) bring about change, growth and wealth
7) re-energise economies
8) start, mng and grow sustainable small businesses
Employment is closely linked to?
The state of the economy
In what form is wealth created by business for society?
In the form of jobs
Name some characteristics of Entrepreneurs.
1) achievement motivation (most essential)
2) internal locus of control
3) innovation and creativity
4) risk-taking
5) others like confidence, optimism, flexibility
What is necessity entrepreneurs?
Unemployment that trigger people into becoming entrepreneurs
Define a small business (SME / SMME)
1) less than 200 employees
2) turnover less than R64 mil
3) capital assets less than R23 mil
4) direct mng involvement by owners
List the entrepreneurial process.
1) personal characteristics, abilities and skills have profound influence on buss
2) find access to resources
3) realistic, objective assessment of opportunity
4) feasibility study
5) business plan
6) launch and mng
What skills do an entrepreneur require?
1) strategy
2) planning
3) marketing
4) financial
5) project mng
6) human relations
What resources are needed to start a business?
1) financial
2) human
3) operating / physical (equipment)
What are the fundamental req for a good investment opportunity?
1) clearly defined market need for the product / service
2) sustainable competitive advantage
3) potential to grow
4) must be rewarding to entrepreneur
5) timing must be right
Who decides the answers to the economic ? , what how and for who to produce?
The entrepreneur
