chapter 7 Flashcards
what is entrepreneurship ?
Entreprendre → “to undertake”
In a business context, entrepreneurship means accepting the challenge of starting and running a business
2.9 million people in Canada are self-employed
how does entrepreneurship differ from a small business ? what are the 4 main differentiation ?
While most business start small, its intent is to stay small ( that’s what separates it from entrepreneurship )
Entrepreneurial ventures differ from small business in four ways
1) Amount of wealth creation
2) speed of wealth creation
3) Risk
4) Innovation
what are 5 reasons people take the emtrepreneurial challenge ?
1) NEW idea, process or product
-Some are driven by the fact that they can produce a product at a lower cost
2) Profit
3) Challenge
- Some thrive on overcoming challenges
4) Family Pattern
- Some grow up around entrepreneurs
5) Independence
- Some simply do not enjoy working for someone else
what does it take to be an entrepeneur
Entrepreneurial Attributes :
Self Directed ( self-starter )
Self Nurturing ( believe in your idea and replenish your own enthusiasm )
Attributes :
Action-Oriented
HIghly energetic
Tolerant of Uncertainty
Able to learn quickly ( learn from your mistakes )
what aren the 3 questions of turning problems into opportunity ?
1) What do I want, but can never find ?
2) What product or service would improve my life ?
3) What really irritates me and what product or service would help ?
what are the reasons for the emergence of female entrepeneurs ?
Financial Need
Lack of promotion opportunities
Women returning to the workforce
Family and personal responsibility
Public awareness of women in business
Part-time occupations
Higher rate of success for women
what are entrepreneurial teams ?
A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product
what is a intrapineur
Intrapreneurs :
* Creative people who work as entrepreneurs within corporations
* The idea is to use a company’s existing resources—human,
financial, and physical—to launch new products and generate
new profits
what are micropenurs
The smallest of small business is called ,micro entreprise - defined as having fewer than five employees
Many micropreneurs are owners of home based businesses ( owned by people who are trying to combine career and family )
what are the reasons for growth and some challenges home based business face ?
growth :
Computer technology
Corporate downsizing
Change in social attitudes
challenges :
Getting new customers
Managing time
Keeping work and family tasks separate
Abiding by city ordinances
Managing Risk
what are incubators ?
Entrepreneurs and new start-ups can find assistance from incubators
Provide : ( helps them grow )
what are 4 ways to get into your first business venture ?
1) start your own company
2) buy an existing business
3) buy a franchise unit
4) inherit/take over a family business
what are the functions of a business in a small0business setting ?
- Planning your business
- Financing your business
- Knowing your customers (marketing)
- Managing your employees (human resource development)
- Keeping records (accounting)
what does a detailed written business plan entail ?
The nature of the business
The target market
The advantages the business will have in relation to competition
The resources and qualifications of the owner(s)
- A business plan forces potential owners of small businesses to be quite specific about the goods or services they intend to offer
what are angel investors ?
Private individuals who invest their money in potentially hot companies before they go public
Angel investors usually target their support (generally $20,000 to $500,000) to pre-start-up and early-stage companies
what is crowdfunding
the raising of funds through the collection of small contributions from the general public ( know as the “crowd” ) using the internet and social media
Examples of crowdfunding platforms where individuals can ask for or
donate money include Kickstarter and Indiegogo
what is one thing about knowing your customers ?
The market :
People with unsatisfied wants and needs who have both the resources and the willingness to buy
* One of the greatest advantages that small businesses have over larger ones is the ability to know their customers better and to adapt quickly to their ever-changing needs
what is the best way to manage your employees ?
- Hiring, training, and motivating employees are critical
( It is not easy to find good, qualified help when you offer less money and fewer benefits )
what is the gig economy ? what is it also know as ?
also know as : on demand economy
Work based on people having temporary jobs or doing separate pieces of work, each paid separately, rather than working in a permanent job for an employer
