Entrepreneurship, Leadership And Management Flashcards
What does an entrepreneur do with the factors of production
It combines these factors in order to produce goods and services that will be sold to satisfy the needs of the customer. They do this by starting and running a business in which they make a profit
What is a job
A paid position of employment
What is a career
A way of making a living
What is a profession
An occupation
Is entrepreneurship by choice
Not always
What are examples of other categories that do not fall into the formal workforce
- pensioners
- by choice
- homemakers
- unemployed
- retrenched
- fired/ dismissed
What are the types of entrepreneurial businesses
- home based
- survivalist
- micro
- small
- medium
- large
What is a home based entrepreneurial business and give examples
A skill based business, it may be buy choice or a necessity due to aspects such as disability
Eg bookkeeping, sewing, woodwork
What is a survivalist entrepreneurial business and what are examples
due to high rate of unemployment, low levels of education and lack of infrastructure in rural areas, people make a living selling fresh produce or selling items out of whatever raw material they can find.
What is a micro entrepreneurial business and what is an example
It is more structured than survivalist business, raw materials are obtained from suppliers and they have fixed selling points Such as a flea market or caravan.
Eg. Corner shop
What is a small entrepreneurial business and give an example
Normally start ups, they may be set up in temporary premises until the business makes a profit and they often hire a few staff on a temporary basis
What is a medium entrepreneurial business
A business that employs full time staff, has a set market, fixed premises and is registered
What is a large entrepreneurial business
a business run by an entrepreneur or group of entrepreneurs, is innovating and expanding and setting its objectives to capture markets.
What is an entrepreneur
Someone who can identify a need for a product or service, and a gap in the market and through sufficient research takes risks to ultimately make a profit
Why is entrepreneurship important in South Africa
An entrepreneur provides a need as well as a profit for themselves.
- the population of South Africa is growing faster than the economy therefore there is not enough jobs for the population
- the government focuses on managing the country and not on providing jobs
- entrepreneurs create jobs for others
What are business tools that entrepreneurs use
- market research
- SWOT analysis
- business plans
What are the important aspects of market research
the aim of the research and participants should always be assured of their privacy
What is the purpose of market research
To identify the needs vs wants of the customer. The business can then make use of a gap in the market and offer a better product or service
What are the different types of needs to make a profit
Natural, essential, luxury and cultural needs
What is maslows hierarchy of needs
Self actualisation
Recognition
Social needs
Safety and security
Survival needs
What to consider when making market research questions
- format
- potential target market
- ask the right questions
- make it user friendly
- keep track of all questionnaires
- document all information
What does a swot analysis help an entrepreneur determine
The viability of a business venture
Why is a business plan important
- forces the owner to think about and document their idea
- helps for investment purposes
What are the main characteristics of an entrepreneur
Risk taker, persevering and creative
What are the important factors to consider before starting a business
- environmental scanning
- forms of ownership
- location
- general management tasks
Why is it important to scan the environments before starting a business
To Identify the right product and service and target market
Why is it important to consider forms of ownership before starting a business
If is important to choose the correct form of ownership based on:
- number of owners
- size and type of business
- amount of control
- legal protection
Why is it important to consider location before starting a business
Location influences
- availability of labour
- competitors or existing suppliers
- transport costs
- suppliers
- target market
What are the different leadership styles
Charismatic, democratic, autocratic and laissex- fair
What is a probortunity
identifying a problem or gap in the market and then setting up the structures that will fill it.
What is an intrapreneur
employees who work within a business but use their talents to change and improve their department or take the business to new heights.
What are entrepreneurial qualities, attitudes and skills
- Passionate visionaries who believe they could do something that no-one else has done before
- Creative thinkers who challenge the norm.
- Calculated risk takers with positive attitude.
- Have perseverance and commitment.
- A successful leader is results driven.
Influencing and inspiring others by leading through example. - Possess emotional intelligence.
- Has communications and listening skills
- Has ability to self motivate and follow through on plans.
What is the difference between a manager and a leader
A manager maintains systems while a leader develops new methods of doing things.
A manager focuses of systems and structures while a leader focuses on people.
A manager relies on control whereas a leader Inspires trust.
A manager accepts the status quo whereas a leader challenges the status quo.
What are the different management styles
Autocratic, democratic, laissez-faire, transactional, transformational, and situational approach.
What is an autocratic leadership style
- Seldom allows for input from subordinates
- Makes all decisions
- Best leadership style for quick decision- making/problem solving.
- Disadvantage is that employees often have low morale as they may feel undervalued.
Eg. Martha Stewart
What is a democratic leadership style
- Allows subordinates to provide input.
- Allows subordinates to participate in decision making .
- Ensures buy-in and commitment from staff.
- Disadvantage could be a slower decision- making process.
What is laissez-faire leadership style
- A French word meaning ‘no interference’.
- Management will tell staff WHAT must be done, not how to do it.
- Only works with a highly skilled workforce.
- Practiced predominantly in businesses that require creativity.
Eg Google
What is a transactional leadership style
- Based on the give-and-take approach.
- Employees are motivated to perform their task in return for possible salary/bonus/other benefits.
- Disadvantage: as soon as employees regard the reward as insufficient they become demotivated which often leads to labour disputes.
Eg bill gates
What is a transformational leadership style
- This type of leader is charismatic by nature
- Motivates employees by helping them understand their work.
- Emphasis is on teamwork.
- Time spent on explaining to the team why they matter.
Eg Steve jobs
What is a situational approach leadership style
- Different leadership style used in different situations.
- Leadership style may be influenced by:
✓Organisational culture which is a reflection of the leader’s and followers value system and beliefs.
✓Abilities of the leader as well as the followers.
✓Relationship between the leader and followers. - disadvantage could be followers feeling unfairly treated.
What are management tasks
Planning, organising, leading and controlling
What is the management task planning
- Aimed at the future
- In order to plan:
✓All necessary information should be gathered
✓Alternatives must be considered
✓Best option chosen - Plan should be adaptable, realistic and cost effective and clearly communicated in writing to all concerned parties.
What is the management task organising
Means to arrange activities in such a way that all factors of production (natural resources, capital, labour, entrepreneurship) work together successfully. Also refers to organisation structure within the business. Example, line or functional structures. Lines must be clear to prevent confusion among employees
What is the management task leading
The manager must ensure that staff are guided to achieve the goals of the business as well as their personal goals as employees. Aspects such as communication, motivation and leadership are important when taking command.
What is the management task controlling
• Control ensures the implementation of the plan
• Control is not possible if there are no clearly defined goals.
• Provides manager with feedback on whether plans are working or not.
• Also provides feedback to determine how problems can be addressed in order to improve employee performance and overall business.
What are other management tasks other than POLC
Coordination, communication, discipline, delegation and motivation
What is coordination in management tasks
to create synergy between individual efforts, teams and departments.
What is communication in management tasks
refers to transfer and receiving of ideas and attitudes between management and workers as well as media, suppliers, government and customers.
What is delegation in management tasks
to reduce workload of senior employees and to achieve meaningful distribution of tasks and responsibilities.
What is discipline in management tasks
purpose is to improve future behaviour in the business. Must be done consistently. Fair treatment for all.
What are managerial competencies
Combination of skills, attitudes,
behaviours and knowledge that a person needs to be effective as a manager
What are examples of managerial competencies
Strategic action, global awareness, negotiation, teamwork, organisational awareness, judgement, analysis, empowerment and talent development, initiative and customer service orientation
What is the managerial competency strategic action
Ability to look at current position business in relation to the rest of the market and decide where the business should be and how to do it.
What is the managerial competency of global awareness
understanding political, language and cultural differences to avoid making general assumptions
What is the managerial competency of negotiation
ability to convey a message and persuade the audience to accept this point of view.
What is the managerial competency of teamwork
Ability to Form teams where members complement each others strengths and weaknesses
What is the managerial competency of organisational awareness
Being aware of internal and external factors that may have an impact on the success of the business
What is the managerial competency judgement
Having relevant facts evaluated in an objective manner before making a decision.
What is the managerial competency analysis
Identifying potential problems and pre-empting solutions in order to manage risks.
What is the managerial competency of empowerment and talent development
Investing time and resources to empower employees.
What is the managerial competency initiative
Not having to wait for other people to think of new ways to improve the business
What is the managerial competency customer service orientation
Putting customers first and valuing customer feedback
What is extrinsic motivation vs intrinsic motivation
Extrinsic motivation is motivation to perform an activity to earn a reward or avoid punishment, whereas intrinsic motivation is motivation to perform an activity for its own sake and personal rewards
What are the advantages of a motivated workforce
• Employees more likely to provide good customer service.
• Employees are usually productive which will lead to increased profits.
• Lower levels of absenteeism/staff turnover.
• Staff may be less likely to embark on a strike.
• Image of business improved when staff say good things about the business.
• Motivated workers have a positive impact on boosting general morale of the business.
What are forms of monetary motivation
- salary increase
- benefits such as pension and medical aid packages
- performance bonus, profit sharing and commission
What are forms of non-monetary motivation
- Job enlargement
- job enrichment
- empowerment
- recognition
- respecting employees
- wellness programs
- flexible hours
What is job enlargement in terms of non- monetary motivation
Additional tasks are added to original job. Motivated employees as they feel less repetition, however, may also make the employee feel they are doing more for the same pay
What is job enrichment in terms of non- monetary motivation
Employee gets more responsibility and often more authority. Makes employee feel valued and thus more productive
What is empowerment in terms of non- monetary motivation
Given opportunities to learn new skills and knowledge to apply to their current job or new responsibilities
What is recognition in terms of non- monetary motivation
Recognising good work done in the presence of colleagues
What is respecting employees in terms of non- monetary motivation
Respecting employees opinions and including them in the decision making process
What is wellness programs in terms of non- monetary motivation
Assistance with household problems, gym membership may also serve as tools of motivation.
What is flexible hours in terms of non- monetary motivation
Allows employees to decide which hours should be allocated to work and other personal commitments. Example a mom taking children to school May choose to start work early in order to be home in the afternoon to spend time with them
