Establishing A Business

Question 1

What does entrepreneur mean ?

Answer 1

An entrepreneur is someone who takes the risk in establishing and running a business in hopes to make a profit.

Question 2

What is entrepreneurship ?

Answer 2

The process of managing a business enterprise.

Question 3

What is a business enterprise?

Answer 3

Business enterprise is any endeavor where the primary motive is profit.

Question 4

Characteristics of entrepreneur?

Answer 4

1.Creativity
2.Risk-taking
3.Open-mindness
4.Professionalism
5.Planning
6.Empathy
7.Knowledge
8.Flexible

Question 5

The role of an entrepreneur ?

Answer 5

1.Conceptualising:Coming up with an idea.(Looking at why the idea was created and what it will solve.)

2.Planning:what is required to expand the idea into practice.

3.Accessing funds:Acquire the funds to start the business.

4.Organising:Get the factors of production.

5.Operating the business:running the business successfully and looking for ways to improve.

6.Evaluating:the business performance and its profit.

7.Bearing risks:Willingness to operate while there are uncertainty and risk involved.

8.Making a profit or loss:wish relates to whether the entrepreneur risk paid off.

Question 6

Reasons for establishing a business?

Answer 6

1.Financial Independence
2.Inceased Income
3.Self-fulfilment
4.Control over work life

Question 7

Steps in setting up a business

Answer 7

1.Conceputalisation
2.Research
3.Identification of Resources
4.Creation of business plan
5.Aquisation of funds
6.Operation of business

Question 8

What is a business plan ?

Answer 8

A blueprint of the business and its operations

Question 9

Reasons for setting up a business plan

Answer 9

1.Prove your idea is viable
2.Set important goals
3.Reduce potential risks
4.Test if it can survive competitor
5.to see if can get capital

Question 10

Elements of a business plan

Answer 10

1.Executive Summary (Overview of the business)

2.Operational Plan (Describes the business location, legal structure etc.)

3.Business Opportunities (Describes the product/service)

4.Marketing plan (Describes how the product will get into the market)

5.Financial forecast (Projection of cash flow/sales/profit)

Question 11

Research and feasibility ?

Answer 11

Is an analysis of how successful establishing a business is likely to be.

Question 12

What is collateral ?

Answer 12

Any asset used to secure a loan like jewellery, land and building.