Chapter 4: Enterprise Flashcards
Define enterprise and its importance in business.
Enterprise is the initiative to start and manage a new project, venture, or business. It involves risk-taking, innovation, and resource management to fulfill a need or solve a problem. It’s crucial for economic growth, job creation, and driving competition, which leads to innovation and improved products and services.
What are the main characteristics of an entrepreneur?
Key characteristics include:
• Risk-taking: Willingness to take financial, personal, and professional risks.
• Innovation: Ability to come up with new ideas or improve existing ones.
• Proactiveness: Acting in advance to shape or control situations.
• Determination and resilience: Staying committed despite challenges.
• Self-confidence: Belief in one’s ability to succeed.
• Adaptability: Adjusting strategies in response to changes.
List and explain the skills required for successful entrepreneurship.
Essential skills include:
• Decision-making: Choosing the best course of action among alternatives.
• Planning: Setting clear goals, developing strategies, and organizing resources.
• People management: Motivating and managing a team effectively.
• Networking: Building relationships that can provide support, resources, or market opportunities.
• Delegation: Assigning tasks to others to manage workload efficiently.
• Time management: Prioritizing tasks to ensure productivity.
What is an intrapreneur, and how do they differ from an entrepreneur?
An intrapreneur is an employee within an organization who uses entrepreneurial skills to develop new ideas, products, or improvements, often with company resources. Unlike entrepreneurs, intrapreneurs don’t bear the financial risks associated with business ownership, but they contribute to innovation within the company.
Describe the concept of social enterprise.
Social enterprise is a business model aimed at solving social issues or benefiting the community, often reinvesting profits to achieve social goals rather than maximizing profits for shareholders.
What are the challenges faced by entrepreneurs?
Common challenges include:
• Financial risks: Uncertainty in generating revenue and covering costs.
• Competition: Maintaining a unique position in a competitive market.
• Work-life balance: Managing personal time alongside business demands.
• Economic changes: Adapting to fluctuations in the economy.
• Legal and regulatory compliance: Navigating business laws and regulations.
