Entrepreneurship Flashcards
Define entrepreneur
a person who owns and runs their own business, assumes all the risks and rewards for the business venture
Define calculated risk
Making a decision even though you know there is a risk involved
Why do people entrepreneurs?
They want to work for themselves and make their own decisions
They are unemployed and need to provide for their families
Define a “listed” company
A company that sells its shares on the Johannesburg Stock Exchange
What is a retailer?
A shop where goods are sold to the public
What are the characteristics of a successful entrepreneur?
Vision of what they want to achieve
Confidence in their ability to succeed
Like to have control and be in charge
Willpower and perseverance
Very good at planning and organising
Exceptional leadership and management skills
Flexible and able to adapt quickly to change
High levels of energy and commitment
Risk takers
Have the ability to identify new business opportunities
What is equipment?
Assets e.g. machines that are used in the operation of a business
What are raw materials?
Things that are used to make other goods
What are inputs?
The specifications and materials in the production process
What actions does an entrepreneur perform?
Buying
Producing
Selling
Making a profit
Describe the buying action
decide what raw materials are needed find a reliable supplier buy or rent equipment buy raw materials negotiate price with supplier inputs into production process
Describe the producing action
make product
take raw materials and turn them into something useful
decide on production process
aka manufacturing
some businesses don’t manufacture - just produce services
Describe the selling action
persuade customers to buy product or service
includes advertising and marketing
explaining how a product works
explaining benefits of product
making sure customers are satisfied so they come back for more!
Describe the action of making a profit
need to make a profit to survive keep records of money made and spent known as financial records maximise income minimise expenses
What is a needs analysis?
Research to find out what the needs of the people or community are
What are resources?
The things we need to produce goods or services
What is the first step in starting a new business?
Find a good or service that consumers want
What is a SWOT analysis?
An analysis of a business’s strengths, weaknesses, opportunities and threats to decide whether the business can succeed.
What are strengths?
Positive characteristics of business. Things you are good at
What are weaknesses?
Things you are not so good at. We try to control and overcome weaknesses
What are opportunities?
Chances to improve the position you are in.
What are threats?
Things that can have a negative effect on you or your business. Threats are outside your control
What is marketing?
Developing ways to increase sales of product or service
What are the four Ps of marketing?
Product, Price, Place, Promotion
What is advertising?
A tool used to promote your business
What is a target market?
Potential customers who would buy your product or service
What are media?
Places to advertise or spread news about your product
What are the three main categories of media?
Print, broadcasting and Internet
What are the advantages and disadvantages of print media?
cheap, easy to reach large number of people
black and white, still pictures, limited space
What are the advantages and disadvantages of broadcasting media?
large number of people can be reached
very expensive
What are the advantages and disadvantages of Internet media?
new places that people are exploring
limited market because not everyone has access
What are the criteria for a good advertisement?
Attention - attract attention of target market
Interest - keep interest of target market
Desire - create desire for product
Action - lead customer to buy product
