Entrepreneurship Flashcards
entrepreneur
the process where a person creates and operates a new business, usually in response to opportunities while taking on the venture in the hope of making a profit
what are the three points of entrepreneurship
pursuing business, innovation and seeking growth
business
any activity conduxted by an individual to produce and sell goods and services that satisfy the needs of society as well as making profit
profit
what is left behind after business expenses have been deducted from money earned from revenue
features of entrepreneurship
innovation, seeking growth and pursuing business opportunities
innovation
change, improvement and/or
transformation. Entrepreneurs blend their flair,
imagination and creativity to develop new products
or ways of doing business, or improve existing
products or processes.
seeking growth
usually not content to stay the same, and the entrepreneur will seek new trends, explore new products and new approaches so that the business increases in size
why is seeking growth important in a businesss
growth is necessary for the survival of a new business, to increase sales and market shares which results in profit
skills of an entrepreneur
risk-taking, leadership, innovation, communication, descion making and networking
Two of the most crucial questions that a potential business owner has to ask themselves are:
Am i motivated enough to do this? do i posses the appropriate qualities and skills required to operate a business?
what are the main reasons for starting a business
financial independence, personal independence, to make a profit, to fufill a market need or to fufill a social need
financial independence
the capacity to support a lifestyle without having to be emplyed or dependent on others
personal independence
the capacity to be in control of decsions that affect ones everyday actions or activities
market need
products that customers require that may not be readily avliable (gap in the market)
social need
the production or selling of goods and services for the purpose of making the world/community a better place
social enterprise
Any profit they make will be reinvested back into the company in order to continuously fulfill that social need.
benefits of starting a business
being your own boss, independence, profit, rewarding, contributing positivity to society, developing creative ideas, overcoming unemployment, better work life and emplying family members
limitations of starting a business
hark work, long hours, demands of customers, suppliers and financiers, uncertain/flutuating income, risk of failure, stress, responsibilty
