Entrepreneurship [2] *G10 Flashcards by Luffie M

Entrepreneur definition

A person who spots an opportunity and takes advantage of it to establish a business

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Name some push factors [4]

Unemployed
Job security
Can’t find a job
Disagreement with current employer

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Name some pull factors [4]

Independence
Recognition
Self actualisation
Personal employment and wealth

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Name the characteristics of an entrepreneur [7]

Opportunity seeking
Creativity and innovation
Risk tolerance
Determination and preserversence
Self reliance
Flexibility
Motivation

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Opportunity seeking as a characteristic

Seeking opportunities
Finding better ways to satisfy customers while making profit

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Creativity and innovation characteristic

Identifying an new and effective way of delivering products/services

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Two ways of delivering a product (creativity and innovation)

*making customers aware of a new product they don’t know about yet
*offering a product that satisfies existing needs

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Risk tolerance characteristic

Be willing to take risks (personal,financial) to make a business successful

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How to minimise risks

Ensure research has been done before starting a business

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Determination and perseverance characteristic

Making sacrifices and being determined on goals to overcome challenges
-takes a lot of time energy and resources to make a business successful

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Self reliance characteristic

-making own decisions
-not depending on others

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Flexibility characteristic

Adapting to change
Good management tasks are required to adapt to change
(Communication, coordination, delegation,motivation, decision making )

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Motivation characteristic

-internal drive that pushes one to succeed
-taking responsibility for actions

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Entrepreneurial venture characteristics

Innovation, growth potential, sound objectives

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Innovation - entrepreneuroural venture

Looking for new, better and creative ways of satisfying customers

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Growth potential - entrepreneuroural venture

Entrepreneur looks for ways to grow by innovating and offering products to a broader target market

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Sound objectives - entrepreneuroural venture

Formulates clear objectives and works towards them
E.g entering new markets, developing existing markets

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Types of entrepreneurs

Techno
Social
Tourism
Environment

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Explain techno entrepreneur

-looking for ways to develop technology
-using tech to grow their grow their business

Explain social entrepreneur

-start ventures to solve issues in society
-usually ngos

Explain tourism entrepreneur

-identify gaps in tourism industry and offers goods/services to attract tourists

Explain environment entrepreneur

-contribute to a sustainable environment
-create ventures to solve environmental problems

Types of new entrepreneurs

Emerging
Informal
Youth

Explain emerging entrepreneurs

Entrepreneurs previously disadvantaged

Explain informal entrepreneurs

-operate in informal sector -list the characteristics if needed dawg you know it mos

Explain youth entrepreneur

-Private Public Partnerships training youth through entrepreneurial programs and provide necessary resources and support

Name the options for path to entrepreneurship

Starting a new business Buying an already established business Franchise Family business

Name some elements when starting a new business

-decide form of ownership -more costly than buying established -risky

Elements when buying an already established business

-asses if skills match -already customer loyalty -already has supplier connections -ensure not buying a failing business

Name aspects to assess when buying an already established business (5 at least)

-reason for sale -customer base -financial position -industry operated in -profitability -form of ownership -contracts entered -rental agreements -SARS requirements -

Elements when buying a franchise

-brand already successful -buying right to name, logo success -loyal customer base

Buying a family business

-high success rate -growing up = already knowing baie info ig

Name the parts of the entrepreneuroural process

-identifying an opportunity -assessing resources required -developing business plan -management of entrepreneuroural venture

Identifying an opportunity EP

Is it feasible Is it viable Do SWOT analysis Do research about target market

Assessing resources needed EP

-assess availability of resources -financial, raw, machinery, labour, team

Development business plan EP

-ensures all risks are identified, calculated and managed -essential to obtain funding

Management of entrepreneuroural venture EP

-planning, organising, leading and controlling different business activities

Name the stages of growing an entrepreneurourial venture

Incubation Start up Breakthrough Maturity Decline/rejuvenation

Factors to give competitive advantage (5)

Price Time Product differentiation Customer convenience Experience of customer

Stage 1

Incubation -identifying opportunity -pre birth

Stage 2

Start up -production and trading commences

Stage 3

Breakthrough -rate of business increases -close eye on factors of production

Problems that can occur in the breakthrough stage

-cash flow -Labour and skills -delivery/distribution -production complications and time

Stage 4

Maturity -business established itself -loyal customer base -return on investment

Stage 5

Decline/rejuvenation -business must decide to close or rejuvenate

What to do to rejuvenate

-competitive advantage -what it takes: *creativity *innovation *patience *strategic thinking *capital

Niche meaning

Focused approach to something