Periodical Exam Flashcards
dynamic process of creating and managing a business venture with the aim of making a profit.
Entrepreneurship
What involves in entrepreneurship?
innovation, risk-taking, and the ability to
recognize and exploit business opportunities in the market.
Characteristics of an Entrepreneur:
Innovative and Proactive
Risk-Taker
Opportunity Recognition
Entrepreneurs are
visionaries who anticipate market needs and create
innovative solutions. They actively seek opportunities for
growth and development.
Innovative and Proactive
Entrepreneurs embrace calculated risks,
understanding that risk-taking is inherent in business. They
assess risks and make informed decisions.
Risk-Taker
Entrepreneurs have a keen
sense of observation and can identify gaps in the market.
They are quick to recognize viable business opportunities
and act upon them.
Opportunity Recognition
Types of Entrepreneurship:
Small Business Entrepreneurship
Social Business Entrepreneurship
Innovative Entrepreneurship
Buyer Entrepreneurship
Involves local
businesses such as restaurants, salons, and local shops.
Often family-owned, these businesses cater to the
immediate community.
Small Business
Focuses on
addressing social issues and creating positive societal
impact. These ventures prioritize social or environmental
goals over profits.
Social Business Entrepreneurship
Centers around
technology and innovation. Startups and tech companies
fall into this category, constantly pushing the boundaries of
what’s possible.
Innovative Entrepreneurship
Involves acquiring existing
businesses and leveraging them for further growth. It
requires strategic planning and business acumen.
Buyer Entrepreneurship
encompass a wide range of
skills and traits essential for entrepreneurial success
Entrepreneurial competencies
Entrepreneurial Competencies:
Opportunity Competency
Conceptual Competency
Organizational Competency
Strategic Competency
The ability to identify, assess,
and exploit business opportunities effectively.
Opportunity Competency
Involves critical thinking,
problem-solving, and strategic planning skills.
Conceptual Competency
Encompasses effective
management of resources, both internal (employees) and
external (suppliers, partners).
Organizational Competency
Involves the formulation and
implementation of business strategies for sustainable growth.
Strategic Competency:
Entrepreneurial Process:
Opportunity Spotting and Assessment
Developing a Business Plan
Determining the Capital Needed
Running the Business
Entrepreneurs analyze market trends, consumer needs,
and competitive landscapes to identify viable business
opportunities.
Opportunity Spotting and Assessment
Entrepreneurs create a
detailed business plan outlining their vision, mission, market
analysis, financial projections, and operational strategies.
Developing a Business Plan:
Entrepreneurs
evaluate the financial requirements for starting and
operating the business, considering factors like startup
costs and working capital.
Determining the Capital Needed
Entrepreneurs manage
day-to-day operations, marketing, sales, and customer
relations. They adapt to market changes, ensuring the
business remains competitive.
Running the Business:
Factors Influencing Entrepreneurial
Decision-Making:
Attitude to Risk
Availability and Reliability of Data
Business Objectives/Budget
Organizational Structure
Entrepreneurs assess their risk
tolerance and make decisions considering potential risks
and rewards.
Attitude to Risk
Informed
decisions rely on accurate market research, financial data,
and industry trends.
Availability and Reliability of Data
Clear business goals
and financial planning guide decision-making, ensuring
resources are allocated efficiently.
Business Objectives/Budget
Entrepreneurs choose
organizational structures that facilitate efficient
communication and decision-making processes
Organizational Structure
Scanning the Marketing Environment:
Socio-Cultural Factors
Technological Factors
Economic Factors
Legal and Ethical Factors
Demographic Factors
Encompass innovations,
advancements, and disruptive technologies influencing
product development and market competitiveness.
Technological Factors
Consist of economic indicators,
inflation rates, and consumer spending patterns affecting
market demand and pricing strategies.
Economic Factors
Refer to laws, regulations,
and ethical considerations impacting business operations
and industry compliance.
Legal and Ethical Factors
Involve population characteristics
such as age, gender, income levels, and education,
influencing target market identification and product
customization.
Demographic Factors
a multifaceted journey that requires a
deep understanding of market dynamics, consumer
behavior, and strategic management principles.
Entrepreneurship
continuously enhance their skills, adapt to
changing market trends, and innovate to stay ahead in the
competitive business landscape. By mastering these
fundamental concepts and related topics, aspiring
entrepreneurs can navigate challenges and build
sustainable, impactful businesses.
Successful
entrepreneurs
