Introduction to Entrepreneurship + The Entrepreneur

Question 1

Entrepreneurship

Answer 1

The practice of starting new organisations, particularly new businesses; the process of innovation and new-venture creation; the commercialisation of innovation.

Question 2

Entrepreneur

Answer 2

A social or business innovator or developer who recognises and seizes opportunities; converts those opportunities into workable/marketable ideas; adds value through time, effort, money or skills; assumes the risks of the competitive marketplace to implement these ideas; and realises the rewards from those efforts.

Question 3

Who Are Entrepreneurs?

Answer 3

People who:

• Recognise opportunities
• Are catalysts for change
• Start companies and create jobs
• Are forward thinkers
• Are realistically optimistic
• Seek solutions and find funding

Question 4

What Skills must Entrepreneurs exhibit to be Successful?

Answer 4

• Resource consolidation
• Desire for autonomy and considered risk taking
• Confidence and competitiveness
• Strong self-esteem
• Goal-orientation and the ability to see opportunities
• Set strategic and viable goals
• Learn from mistakes and gather resources to overcome the same

Question 5

Why is Entrepreneurship Important?

Answer 5

• New business + Job Creation
• Economic Growth
• Social Change + Community Development
• Opportunity recognition in crisis
• Improve quality of Life
• Stimulate innovation, productivity and efficiency

Question 6

Entrepreneurial Traits

Answer 6

• Self-Efficacy
• Collaboration
• Empathy
• Perspective
• Communication
• Identify Opportunities

Question 7

The Entrepreneurial Mindset

Answer 7

Refers to all the cognitive characteristics and elements that compose the entrepreneurial potential in every individual. Can be innate or learned.

Question 8

Entrepreneurial Impact on Global Climate Change and Health (OLD GENERATION)

Answer 8

Entrepreneurs have exploited the environment with less understanding of sustainability.
People in the past have solved immediate problems but at the expense of environmental damage and overtime, contribution to global warming.

Question 9

Entrepreneurial Impact on Global Climate Change and Health (NEW GENERATION)

Answer 9

They are the best positioned to commercialise existing innovations, and solve big problems like poor health and hygiene.
Large focus on sustainable development and positive contribution to ecosphere.

Question 10

Difference between Business and Social Entrepreneurs

Answer 10

The main difference between social and business entrepreneurs is how they distribute their value. Business Entrepreneurs put the profits into their own pocket, whereas Social Entrepreneurs distribute their profits to benefit the wider community.

Question 11

Business Entrepreneurs

Answer 11

An entrepreneur driven by the profit motive (as opposed to social entrepreneurs) - they seek growth and profits within the business world.
They are constant innovators always trying to capture larger market shares from a competitive marketplace.

Question 12

Social Entrepreneurs

Answer 12

An entrepreneur driven by a mission, who seeks to find innovative ways to develop and promote solutions or products that add value to both the company’s bottom line as well as to society and the planet. They seek to find innovative ways to solve problems that are not being or cannot be addressed by either the market or the public sector.

Question 13

How do Entrepreneurs Contribute to Development of the Global Economy?

Answer 13

• Renewal process - new market economies
• Innovation creation that leads to technological change and productivity growth
• Facilitator for individual access to the social and economic mainstream of society
• Effectively deliver health, education and welfare resources

Question 14

The Global Entrepreneurship Monitor (GEM)

Answer 14

A global study conduction yearly since 1999 that analyses the level of entrepreneurship in nearly 100 countries.
It sees different qualities of entrepreneurship a determined by the stage of economic development.

Question 15

Theory of Entrepreneurship

Answer 15

A verifiable and logically coherent formulation of relationships or underlying principles that explain entrepreneurship.

Question 16

What do the theories/principles of entrepreneurship do?

Answer 16

• Predict entrepreneurial activity

- Provide normative guidance

Question 17

What is it important to recognise the diversities of entrepreneurship?

Answer 17

Because entrepreneurship is interdisciplinary; relates to many different branches of knowledge.

Question 18

How do we categorise the principles/activities of entrepreneurship?

Answer 18

This is categorised through ‘schools of thought’, which divides entrepreneurship into specific activities within a macro view or a micro view.

Question 19

School of Thought

Answer 19

A body of belief, literature or theory that is accepted as authoritative by a group of scholars or writers. “Opinion subscribed to by a group of scholars, theorists or researchers.”
It refers to the likelihood of someone to engage in entrepreneurial behaviour.

Question 20

Macro View

Answer 20

A view of entrepreneurship that examines the huge array of external processes and factors that are sometimes beyond the control of the individual entrepreneur, such as the environment and financial markets, that relate to success or failure in contemporary entrepreneurial ventures.

Question 21

Social and Cultural School of Thought

Answer 21

The school of thought that deals with external factors, surrounding conditions and influences that affect a potential entrepreneur’s lifestyle. (Can be positive or negative).

Question 22

Financial/Capital School of Thought

Answer 22

Refers to the need for capital and focuses on the relationship between entrepreneurs and investors, funding sources, performance of entrepreneurial investments and returns for investors and entrepreneurs, and public policy issues.

Question 23

Displacement School of Thought

Answer 23

The school of thought that focuses on factors that prevent (or displace) a person from doing other activities (negative factors), such as political regime or a regulatory environment that block free enterprise; or economic factors such as job loss or even full employment; cultural aspects that might prevent a person from choosing self-employment; and the effect these factors might have on the choice to become an entrepreneur

• Political
• Cultural
• Economic

Question 24

Ecological School of Thought

Answer 24

The school of thought that focuses on our perception of the natural world and our relationship to it as entrepreneurs. Based on the idea that everything is related to everything everywhere.

Question 25

Micro View

Answer 25

A view of entrepreneurship that examines the factors that are within the entrepreneur’s ability to direct or adjust. They can control the outcome of major influences; part of one’s internal locus of control (belief that events occur as a result of one’s actions).

Question 26

Entrepreneurial Trait School of Thought

Answer 26

The study of successful people who tend to exhibit similar characteristics that, if copied, would increase success opportunities for the emulators.

Question 27

Venture Opportunity School of Thought

Answer 27

Focuses on the sources of ideas and development of concepts within the context of creativity and market awareness: developing the right idea at the right time for the right market niche.

Question 28

The Pathways Principle

Answer 28

The belief that proper preparation in the interdisciplinary business segments will enhance the ability to recognise venture opportunities

Question 29

Strategic Formulation School of Thought

Answer 29

Views strategic planning as interwoven into the entire fabric of management, not as something with a separate office and staff. Requires an interdisciplinary approach, and emphasises planning, leveraging of the following characteristic elements:

• Unique Markets
• Unique People
• Unique Products
• Unique Resources