Entrep Exam Flashcards
Who is an Entrepreneur?
An entrepreneur is a person who decides to start a new business, endures the potential risks and relishes the rewards.
What is Entrepreneurship?
the activity of setting up a business or businesses, taking on financial risks in the hope of profit.
What are some Characteristics of an Entrepreneur?
Innovative
Being innovative, speaks to the tendency to transform new ideas into value. It is the responsibility of the
Entrepreneur to combine ideas and knowledge in order to bring something new to the market or simply to add
value to an existing offering. This is an ongoing task. Innovation is the driving force that gives a business the
competitive edge in this dynamic world.
Creative
Creativity speaks of the ability to use the imagination to produce something new. It is through a creative mind
that the Entrepreneur thinks of solutions to problems and applies innovation in solving them, in a way that
creates supreme value. The world keeps changing and it requires individuals who will take a creative thinking
approach, to keep on top in the market place.
Calculated Risk-Taker
Entrepreneurs are not afraid to take risks. They see risks as challenges and are ready to ‘take them on’.
However, it is said that Entrepreneurs take calculated risks. This means that they look at the advantages and
disadvantages of taking a particular option, explore the possible outcomes and then make informed decisions.
Systematic Planner
The Entrepreneur is goal- oriented. His/her desire for success will inspire others to work towards achieving
organizational goals. The Entrepreneur should be able to clearly establish the mission and vision for the
entity. Strategic plans must be developed to guide employees towards the goals of the organization.
Visionary
An Entrepreneur is expected to envision an opportunity even when it is oblivious to others. He/she anticipates the future needs of the target market and designs and creates goods/services and processes that will meet those needs.
Achievement Oriented
Entrepreneurs set goals for themselves that become their focus. It is not usually about fame or
status. Rather, it is an internal drive to reach their own standards.
Persistent
Successful entrepreneurs recognize that success is not always immediate. They often have already
gone through failures but do not allow those failures to daunt them.
Dynamic
The Entrepreneur exhibits high levels of energy that allows him/her to accomplish organizational goals in the most efficient way possible.
Hardworking
Self-confident
Entrepreneurs conduct the necessary research and are confident that their ideas will be a success.
They have full trust in their ability to bring them to reality.
What are the functions of an Entrepreneur?
The entrepreneur creates new businesses or renovates existing ones.
The entrepreneur identifies and organizes needed resources.
The entrepreneur creates new and useful ideas.
The entrepreneur solves problems.
The entrepreneur innovates; creating value in the market place.
The entrepreneur functions as a risk taker and not as a risk avoider.
The entrepreneur engages in research before developing an idea.
The entrepreneur develops his/her management skills.
The entrepreneur overcomes resistance to change.
The entrepreneur provides a catalyst for economic development.
What are the TYPES of entrepreneurs?
Nascent
These are individuals who are engaged in preparations to launch a business venture. They have determined the
nature of the new enterprise, but plans for the business start-up operations are not completed.
Novice
A novice entrepreneur is an individual who is embarking on his first business venture or one who has
successfully launched his/her first business. There is no previous history or experience of him/her starting a
business. Novices seek secured incomes and are hesitant to lose their independence in pursuit of rapid
business growth.
Serial
These are individuals who launch a number of business ventures. The enterprise is managed and placed on a
successful path, before it is sold by the business owner. The entrepreneur then moves to another new venture.
Survival
This type encapsulates the process of carrying on business so as to ensure economic survival It is one of the most
common types. A survivalist operates a micro- business to provide for needs of his family and is characterized by a
simple business structure and minimal planning. The objective is to perpetuate the cycle so that the business survives
and provides income to ensure the entrepreneur’s survival.
Lifestyle
This type of Entrepreneurship involves the carrying on of a business that is organized so as to allow for the
simultaneous operation of one’s life style. The business is created to fit into a current or desired lifestyle of an
individual.
Habitual
A habitual entrepreneur is one who has started a business venture and is involved either as a minority or
majority proprietor in one or more enterprises.
Portfolio
This is an entrepreneur who owns and operates several businesses at the same time. They keep
their original venture while creating or acquiring other businesses.
Social
Social entrepreneurship is a new, innovative business venture that influences change. They apply the
principles and guidance used by start-up founders and entrepreneurs to a business that directly generates
social change or impacts a social cause. A social entrepreneur is primarily motivated by a desire to alleviate some kind of systemic social or cultural problem.
Opportunity-based Entrepreneur
This is a person who spots and seizes an opportunity to achieve profit. This person is able to seize
opportunities because of his/her knowledge, skills and abilities, experiences, hobbies, cultural and
social environment.
Speculative
This type of entrepreneur is based on the realization of quick profits. They involve aspects of
risk-taking, keen insight and unique timing. This entrepreneurship is where the venture’s time frame
is shorter.
What is a Social Entrepreneur?
The social entrepreneur is a mission-driven individual who uses a set of entrepreneurial behaviours to deliver a social
value to the less privileged, all through an entrepreneurially oriented entity that is financially independent, self-sufficient, or
sustainable.
What is Social entrepreneurship?
Social entrepreneurship can be defined as the process of creating social impact and value by organizing
productive resources in innovative ways to meet a social need.
What are the characteristics of the social entrepreneur
Set out to create and sustain social value for the mission’s beneficiaries
Pursue opportunities for meeting mission objectives
Have a clear vision, a good or service to trade and a reinvestment strategy
Become innovative in finding new ways of generating trade and income
Try to adapt to new circumstances to remain effective in what they do
Act boldly even where resources are in short supply or inaccessible in the short term
Ensure that there are systems to assure others of their accountability and transparency.
What are the Types of Social Entrepreneurship?
Philanthropic Organizations- Donate resources for the advancement of the needy, motivated by humanitarian
purposes (for example, a foundation that provides scholarships for inner city children/provides for the homeless)
Advocacy Organization- Supports initiatives or causes (for example, agencies that protect drug addicts or end
teenage pregnancy)
Mutual Benefit Organization- Provides services to constituencies (sometimes for a minimal fee), for example,
community football team/school for the blind
What is the Social Entrepreneurship process?
Opportunity Recognition - identifying what are the social problems and unmet needs.
Concept Development - identification of social rewards; new products and new markets.
Resource determination and acquisition - identifying financial resources, human resources and social
capital.
Launch and venture growth - a measure and result of returns and a means to drive expansion and
change.
Goal attainment and the exercise of a number of options, e.g., continuing sustaining the mission, exiting
as the mission is completed, finding and adding new needs/opportunities/goals and embarking on a new
venture.
What are some theories that may be the cause of Social Entrepreneurship?
- Environment- social entrepreneurship is considered to be dormant in the population until the failure of
government and commercial enterprises presents an opportunity for it to emerge. - Perturbation- displacements or changes within the regular business by political, cultural, economic, demographic
changes, create opportunities for social entrepreneurship. - Resources- the provision of access to resources for social purposes will influence persons
in entrepreneurial activities.
- Personal traits-persons who have entrepreneurial traits get the chance to implement their ideas in a
non-competitive environment - Preparation- persons can be trained properly to spot and create opportunities, and are more likely to do so
Challenges of Social Entrepreneurs and recommendations to help them?
Lack of clear definition of social entrepreneurship and what is a social enterprise :
There is a need for quantitative and qualitative research to provide information in order to start policy dialogue around the definition and practical value of social enterprises.
Limited data on the third sector and their operations due to Inconsistent monitoring of progress:
There is a need for more emphasis on measuring the social value created and calculating the social rate of return on Investment by private and public sectors.
Organizations operate Informally With non-existent or inadequate policy, legislative or regulatory frameworks:
There is a need for development of clear policy documents, giving due recognition to the diversity in the types of organizations and their functions.
Focus of organizations tends to be short-term (project focused) and not long-term (output/impact focused):
There needs to be support for changed thinking from governments and funding agencies through increased training and support for talent and altruism.
How does Cultural diversity play in Entrepreneurship?
Cultural diversity provides a rich mix to the area of entrepreneurship and encompasses a multitude of sub cultures societies. It consists of elements such as religion, race. gender, family, sexual orientation, ethnicity and social status.
Ethnicity and Entrepreneurship?
Ethnicity refers to a particular group of people or social group with a common, distinguishing and shared culture.
Businesses within ethnic communities are deeply influenced by the culture and values of the group, and the family plays a significant role in maintaining and promoting those values in business management.
Gender & Entrepreneurship
Gender and Entrepreneurship Leadership roles in the corporate world are male dominated. Scarborough
(2011) stated that despite legislative efforts, women still face discrimination in the work place. Women would normally go into healthcare, arts and entertainment and beauty care.
However. many are now venturing into areas usually by men.
