Lecture 2

Question 1

Who is an entrepreneur

Answer 1

A person who sets up a business or businesses, taking on financial risks in the hope of profit.

Question 2

Entrepreneurs :

Answer 2

• recognize opportunity where others see chaos or confusion
• Are aggressive catalysts for change within the market place.
• Challenge the unknown and continuously create the future.

Question 3

Classification of entrepreneurs

Answer 3

• opportunist entrepreneurs
• Craft entrepreneurs ; growth oriented and income oriented

Question 4

The opportunist entrepreneur:

Answer 4

• employ other skilled people to run their business
• Have no grand vision
• Are interested in what can be exploited in their environment
• Are resourceful
• Think quicker when it comes to manipulating resources and opportunities.
• Are characterized by a level of restlessness
• Have appetite for challenges.

Question 5

The craft entrepreneur:

Answer 5

• Uses their own skills to start and run their business.
• Have vocational qualification for the exercise of their profession
• Manage expertise
• Train apprentices
• Direct skilled workers
• Participates in daily work activities as final work depicts their competence.

Question 6

Entrepreneurs can also be classified as

Answer 6

• nascent: actively engage in creating a new venture either alone or with someone.
• Serial : starts a new business after already started and exited a previous business
• Novice: owns equity stake in an independent business. The business can be new, purchased or inherited.
• Portfolio : owns more than one business at a time.

Question 7

The entrepreneur process

Answer 7

• the entrepreneur: the individual or team who initiates, develops, and leads the venture.
• Opportunity: a gap in the market that might be exploited to create new value
• Resources: the things entrepreneurs use in order to pursue their ventures
• Organization: a collection of resources under the control of the entrepreneur.

Question 8

Functions of the entrepreneur

Answer 8

• the entrepreneur - opportunity
  
  • scanning
  • identifying
  • analysing
• The entrepreneur - organization
  
  • leading
  • focusing
  • directing
• The entrepreneur - resources
  
  • attracting
  • shaping
  • managing

Question 9

Entrepreneurial personality:

Answer 9

The characteristics of an individual that causes consistent patterns in that individuals behavior outcome

Question 10

The physiological approach

Answer 10

There are two types of people:
* The externals : they believe whatever happens to them is as a result of chance, luck, fate, etc.
* The internals: they believe most part of their future is in their control through their own effort

Question 11

The situational characteristic approach:

Answer 11

• perceptions of feasibility motivating success stories
• Perceptions of desirability from family

Question 12

The sociological approach:

Answer 12

• Positive pull from relative and friends
• Positive push
• Negative displacement
• Marginalization between things