Entrepreneurship module 7 Flashcards
what is an entrepreneur
he / she is a person who attempts to satisfy peoples needs and wants by filling in a gap in the market by selling their product or service.
what are needs and wants
needs - the things that we need to live
wants - things that we don’t need by if we had it would make or lives better
name some needs and wants
needs - water, sunlight, air, food, shelter, transport, health care, rest, clothing, income, security, love, pants and education …
wants - TV, most house hold objects, bigger bed, pool, a new bike …
what does and entrepreneur do
he / she attempts to fill in gaps in the market by selling their product or service in exchange for income. they generate their income from their business.
what are some of the risks entrepreneurs take
- their product might not sell
- unexpected expenses
- go bankrupt (overspending)
- crime influences (internal + external)
- legal difficulties
- supplier lets you down
- poor selection of location
- poor investing
- poor selection of workers (striking workers)
- poor planning and organisation
- poor quality of product (product competition)
- insufficient knowledge of product
- natural or man-made disasters
- lack of capital
what make entrepreneurs successful
- using good, successful ideas
- good management of staff
- good choice of product(s)
- addressing customers needs
- correct location for business
- honest business dealings
- good planning and organisation
- good selection of workers
- accurate costing
- quality equipment
- safety measures
- provide solutions to problems
- learn from and listen to others
- discuss their ideas with others
what is the best way to make sure people will buy your product
you must do market research. this way you will know if people will buy your product or not. one of the best ways you can do this is by doing a survey
what is a SWOT exercise
it is an analysis and the letters in the acronym stand for:
Strengths - of the business, could include knowledge, skills or talents
Weaknesses - of the business, maybe the stock isn’t easily available …
Opportunities - if your think you can make success, your idea becomes opportunity
Threats - there are always / many threats to a business
what does a business include
1 - a logo containing the name of business + owner
2 - explain why your business will be successful
3 - describe the product being marketed / sold
4 - set attainable goals
5 - give detailed explanation of cost of materials
6 - list all requirements
7 - determine added on cost to product
why is advertising important
so potential customers know what is being sold
what determines how productive a business is
- how well it is run
- how well resources are used
how can employers get workers to work better
- offer workers fair pay
- set goals
- improve working conditions
- offer incentives for good work
- send them on training courses
- employee of the month award
- motivate staff in positive way
- provide quality equipment
- send workers on team building exercises
- provide transport for poor employees
- allow workers to work in the areas that they are best in
- promote the best workers
- set fair working hours
what are inputs and outputs
inputs - things we put into a business
outputs - things we sell
what is a balance sheet
a sheet that we keep a record of our income and expenditure
