Entrepreneurship Flashcards
What is entrepreneurship ?
Entrepreneurship is living a few years of life like people won’t. So that you can spend the rest of your life like most people can’t
What is Entreprendre ?
To undertake. This connotes a business paradigm which signifies the start of a new business undertaking
What is entrepreneur ?
A person who strongly advocates and correctly practices the concepts and principles of entrepreneurship in operating and managing the self - owned busines venture or enterprise.
What is entrepreneurship ?
Entrepreneurship is the process of designing, launching, and running a new business which is often initially a small business. The people who create these businesses are called entrepreneurs.
4 Types of Entrepreneurship
• Small businesses Entrepreneurship
• Scalable Start - Up Entrepreneurship
• Large Company Entrepreneurshup
• Social Entrepreneurship
What is small business entrepreneurship ?
They are mostly barely profitable, but they make profits only to make a living and support their families. Such businesses lack the scale to attract venture capital and they are funded via friends/family or small business loans.
What is scalable start - up entrepreneurship ,?
In this type of entrepreneurship, entrepreneurs start their company believing that their vision can change the world. They funding from the capitalist and they hire the best employeees. Finding a scalable and repeatable business model is their goal. Once they find it, further funding from veture capitalists is required for growing their business.
What is large company entrepreneurship ?
Large companies through sustaining innovation, offering new products that are variant around their core product. New products are developed in order to meet with changing customer needs and advanced technology. Often, companies do this by partnering with or buying innovative companies.
What is social entrepreneurship ?
It includes microfinance institutions, educational programs, providing banking services in underserved areas and helping children orphaned by epidemic diseases. The main goal of a social entrepreneur is not to earn a profit, but rather to implement widespread improvement in society.
Entrepreneur create jobs ?
Entrepreneurs in addition to employing themselves, also create a number of job opportunities with their busines venture.
Entrepreneurs create a change.
When an entrepreneur makes a product in the hopes of solving a problem or when they explore a new idea, it brings a change into the world. Their ambitions and ideas thus improve the world.
The market in a place can be capitalistic, communistic, or a mixture of both. Capitalism requires innovation while communism requires entrepreneurs and the political class to be well connected with each other. Ideally, a country should be capitalistic for entrepreneurship to flourish in the region
Political Factors
The strength and fairness of the judicial system in a country has a big role to play in the quality of entrepreneurship. This is because entrepreneurs in many cases might require the courts to enforce the contracts agreed between two parties. But in many countries, such contracts are not enforced properly, and this risk prevents the development of entrepreneurship in those countries.
Legal Factors
Governments sometimes resort to excessive taxation as they adopt the policy of taking from the rich and giving it to the poor. However, the basic principle of entrepreneurship believes in the survival of the fittest and the excessive taxation rule contradicts it. Hence, entrepreneurs want to set up businesses in places where there is very little interference from the government on taxation.
Taxation
Capital is the first requirement to start risky ventures and they might also require instant capital to scale up the business once an idea becomes successful. Therefore, entrepreneurship helps the economies to grow in those countries where there is a well- developed system of providing capital at every stage i.e. seed capital, venture capital, private equity as well as stock and bond markets.
Capital Availability
