ENTREP Flashcards
Apple founder
Steve jobs
Microsoft founder
Bill Gates
The term entrepreneur come from the French word
Entrepredre
Entreprende means?
“to undertake”
a reference to individual who have initiated the establishment of a business enterprise.
entrepreneur
The classic work of Joseph Schumpeter
The theory of economic development
He emphasized the role of entrepreneurs in the process of economic transformation on his book called The theory of economic development
Joseph Schumpeter
These individual are also willing to absorb huge risk of using enormous amount of capital in their business ventures
Megaentrepreneurs
They also initiate business enterprises, the ‘value-added’ and profits they make are limited.
Their contributions are minimal and attract few competitors and imitators.
They engage in micro and small businesses as an alternative to formal employment.
Microentrepreneurs
Who wrote Innovations and Entrepreneurship
Peter Drucker
Emphasized the discipline in the process of starting and managing a business.
Innovations and Entrepreneurship
This entrepreneurial disciplines is often referred to as the ____________ _________, which involves several stages from the awareness of an opportunity to the realization of a business idea.
Entrepreneurial Process
Steps of Entrepreneurial Process (5)
- Discovery
- Development of concept
- Organizing resources
- Implementation
- Reaping the returns
refers to the recognition pf a business idea or the detection of opportunities that could make money for the entrepreneur.
Discovery
Gives more details on how the general business idea can be realized.
Development of a business
describes the process of identifying, sourcing, and financing human, nonhuman, and other resources needed for the conduct of Business.
Organizing resources
Process of carrying out of business plan.
Covers a number of activities, including the management of human, physical technological, and financial resources of the business.
Implementation
Pertains to strategies related to the expansion of the business firm.
Reaping the return
Entrepreneurial traits (4)
- Level of education
- Employment status
- Wealth
- Risk appetite
studies have shown that entrepreneurs need some formal education to be able to seize the opportunities presented by inventions, innovation, and other technological developments
Level of education
Individuals who become entrepreneurs in developed countries are usually former employees of companies in the formal sector.
Employment Status
is also an important factor.
Usually megaentrepreneurs source their funds from their own _______ and from their families.
Entrepreneur’s Wealth
Risk is also an important factor in undertaking any business venture.
Risks Are associated with uncertainties in business operations
Risk appetite
Which are planned actions formulated in the mind of individuals which are geared towards the objectives of establishing a business venture from potential business opportunities.
Entrepreneurial Intentions
2 factors that may influence the formations of entrepreneurial intentions:
Internal factors
External factors
Includes mainly the qualities of individuals such as demographics, personal traits, psychological characteristics, individual skills prior knowledge, and social ties.
Internal factors
refer to gender, marital status, age, and employment status of individuals who are likely to form entrepreneurial intentions.
Demographics
there are theoretical bases for the contributions of self-confidence, determinations, and enthusiasm and other positive human qualities in influencing entrepreneurial intentions.
Personal traits
includes a host of qualities, including need for achievement, risk appetite, acceptance for vagueness, self-efficacy, and goal setting.
Psychological Traits
are also significant determinants.
External factors
External factors (2)
Environmental support
Environmental Influence
many studies affirmed the positive effects of government, financial institutions, and training institutions in setting up businesses.
Environmental support
includes regulatory structures, patents, protections of property rights, and competitive environment.
Environmental influence
GEM means:
Global Entrepreneurship Monitor
Covers the intentions, perceptions, activities, and aspirations of entrepreneurs all over globe
Global Entrepreneurship Monitor (GEM)
Types of thinking that influence entrepreneurial decision-making (3)
- Critical thinking
- Creative thinking
- Strategic thinking
refers to the systematic and rational way of providing an answer to a questions
Critical thinking
refers to thought processes that bring about discovery of new ideas. It does not follow a systematic or analytical process since it looks at things from different perspectives.
Creative thinking
involves thought processes that assess current situations that can be useful in the formulations of plans for the future.
Strategic thinking
can be describe as uncertain situations and developments that can increase the probability of loss or business failure.
Risks
categories of risks (2)
- Internal risks
- External risks
ate threats coming from various environments outside the business firm.
external risks
pertain into those emanating from the management of resources of a business enterprise that may imperil its operations.
internal risks
The process of identifying, assessing, and responding to the risks is called ______
risks management
refers to the ability of individuals to be involves in the process of producing several ways of decision-making based on the identification and management of changes in their environment.
Cognitive adaptability
4 major sources of business ideas
- from the product
- From the process
- from the person
- From relationship