Entrepreneur Pre Lim Flashcards
•Entrepreneurs must have a
deep knowledge about the
market and the industry in
which they wish to start a
company.
MARKET KNOWLEDGE
Excellent technical knowledge,
whether it concerns producing
goods or services, is very
important for entrepreneurs in
order to influence and engage
other stakeholders in leading the
business in its start-up stages.
TECHNICAL KNOWLDEGE
Self-awareness will help entrepreneurs to
understand their personality traits and how these
traits will affect decision making or other people.
SELF-AWARE
Entrepreneurs must be able to
inspire their employees to work
towards their vision and
achieve common goals, while
nurturing creative spirit among
them.
COMPETENT IN HUMAN
RELATIONS
Entrepreneurs, especially the
ones that go “solo”, are the
business. They must carry out a
diversity of tasks while meeting
deadlines
ORGANIZED
Becoming an entrepreneur is not easy.
There will be great, exhilarating
moments, but there will also be moments
of disappointment.
RESILIENT
Having a clear vision of the goals to be achieved
is fundamental to drive entrepreneurs and
extremely important for the whole company.
CLEAR VISION
Entrepreneurs will view the
business as a labor of love
instead of just “work.
PASSION ABOUT THEIR WORK
• More industries can create higher
production at lower prices.
HIGHER PRODUCTIVITY AND ECONOMIC GROWTH
Entrepreneurship leads to the
development of more
industries, especially in rural
areas or regions where there
are very few economic
activities
IMPROVEMENTS IN INDUSTRY
Entrepreneurship is a
challenging task, but if
successful the rewards are
worth the effort.
PERSONAL CHALLENGE
Successful entrepreneurship activities
increase the income level of the average
person, and also the standard of living in
the community.
INCOME GENERATION AND FEWER SOCIAL PROBLEMS
Entrepreneurship not only offers
self-employment opportunities,
but also creates employment for
others, often better jobs. Self-
employment offers more job
satisfaction and flexibility of the
work force.
Employment opportunities
Conducted by McClelland in
America, Mexico and India
(Kakinada)
• Young adults were selected and put
through a 3 month training to
induce achievement motivation.
Kakinada Experiment
David McClelland identified:
-Need for achievement
-Need for affiliation
-Need for power
Theory of Achievement Motivation
Entrepreneurship gets a
boost when society has
sufficient supply of individuals
with necessary psychological
characteristics.
Psychological
This theory ignores the earlier two abilities,
which where till then considered key for an
entrepreneur.
-Organizing abilities
-Risk taking abilities
Entrepreneurship Innovation Theory
He said it Joseph
Schumpeter.
Entrepreneur is one who say combines the land of one, the
labor of another and the capital of yet another to
produce a product.
Jean Baptiste
The entrepreneurship is likely to get a boost
in a particular social culture
• The (entrepreneurial) behavior of individuals
in a society is influenced by:
-Society’s values
-Religious beliefs
-Customs
-Theories etc…
Sociological Theory
Entrepreneurship as an agent who buys factors
of production at certain prices in order to
combine them into a product with a view to
selling it at uncertain prices in future.
Richard Cantillon, an Irish French Economist
businessman is someone who
sets up a business with an existing
idea offering products and services
to the customers.
BUSINESSMAN
An entrepreneur is a person who
starts an enterprise with a new
idea or concept, undertaking
commercial activities
ENTREPRENEUR
The amount of cash or cash-
equivalent which the company
receives or gives out by the way
of payment(s) to creditors is
known as cash flow.
Cash flow
a personal finance expert and columnist,
for others as much as they say they want to be rich.
Cameron Huddleston
savings is the first steps towards wealth
creation, a misconception is that budgeting is only for people
who are struggling to make ends meet.
Save smartly
savings is not
enough, you need to channel your
monthly savings in to investments
based on your financial capability.
Start Investing
- it is always a wise choice to invest in
your education. Education is a long currency and it will not
Invest in your education
leverage is an investment stragey
of using borrowed money, specifically the use of various
financial instruments or borrowed capital.
Apply and used leverage.
the number one reason most people don’t get what
they want is they don’t know what they want.
Treat your wealth as a business
• This type of entrepreneurship refers to any kind of small
business that has been created by one person, without the goal
to expand or franchise.
Small business entrepreneurship
Rooted in the idea of changing the world, scalable startups
focus on how to create a business model that is both
repeatable and scalable (more sales with more resources).
Scalable startup entrepreneurship
Unlike an entrepreneur, who is also the founder, designer and
manager of a business, an intrapreneur is a self-motivated,
and action-oriented employee who thinks out of the box and
works as an entrepreneur within a company.
Intrapreneurship
refers to companies like Disney,
Google, Toyota, and Microsoft who have finite life cycles, as in, they
keep innovating and offering consumers new products that are
variants around their core product-line.
Large company entrepreneurship
(also referred to as an adoptive entrepreneur) is
one who copies what successful innovative entrepreneurs
have previously done, most often with lower financial risks and
limited resources.
Imitative entrepreneurship
constantly trying to come up with the next big thing. If you have
groundbreaking ideas of how to start a business or specific
services and products that can become business ventures, you
might be an innovative entrepreneur.
• As an innovator, you know you must
Innovative entrepreneurship
Instead of
figuring out how to raise money for a business, a buyer
entrepreneur purchases either a developing or well-
established company and helps them thrive.
Buyer entrepreneurship
Don’t let the name throw you off, a hustler in business refers to
a self-starter, a highly motivated person who is driven to
succeed. This type of entrepreneurship style grows directly
from the entrepreneur, who must be confident, fearless and
have rigorous work ethic.
Hustler entrepreneurship
are innovators whose main goal is to create
products and services that both benefit the world, and make money
Social Entrepreneurship
but doesn’t register as another kind
of business. There is no separate
business entity, meaning there is no
distinction between the business
owner’s personal and
professional assets and liabilities.
Sole proprietorship
ownership when
two or more people are involved. There are two
kinds: limited partnerships and limited liability
partnerships.
Partnership
• Similar to sole proprietorships and
partnerships, LLCs do not pay additional
federal income taxes or those associated
with being a corporation. However,
depending on their location, they might be
subject to other state taxes.
Limited liability company
owned by
shareholders, a corporation has legal
rights and liabilities.
Corporations
is a private business
owned and operated by the same
people that use its products and or
services.
Cooperative
the act of being an
entrepreneur.
Entrepreneurship
one who undertakes innovations, finance and business acumen
-in an effort to transform innovations into economic goods
Entrepreneur
➢Entrepreneurship and economic growth take place
when economic conditions are favorable.
Taxation policy
-Industrial policy
-Source of Finance & Raw material
-Infrastructure availability
-Investment & marketing opportunities
-Access to information
-Market conditions
-Technology etc…
Economic Theory
