pERSONAL MOTIVATION BEHIND STARTING A BUSINESS

Question 1

Describe the relationship between innovation and entrepreneurship

Answer 1

Successful entrepreneurs make use of innovation to get an advantage over their competitors, to meet customer demand or improve existing products.

Question 1

Define entrepreneurship

Answer 1

the act of starting and operating a new business in response to opportunities, assuming all the risk in the hope of making a profit

Question 2

Define innovation

Answer 2

Innovation is either adding a new product line or significantly improving an existing product

Question 3

why do people desire to start a business

Answer 3

• financial independence
• personal independence
• monetary reward

Question 4

Market need

Answer 4

Market need refers to the products that customers require that may not be available.

Question 5

Social need

Answer 5

This refers to the production or selling of goods and services for the purpose of making the world a better place

Question 6

eg of social need

Answer 6

• providing opportunities for local unemployed people

Question 7

benefits and limitations of being self employed

Answer 7

BENEFITS
- independence
- possibility of making a profit
- increasing personal wealth

LIMITATIONS
- Hard work
Risk of failure
Stress and worry

Question 8

Entrepreneur

Answer 8

Is a person willing to seize opportunities to start and operate a business and takes risks in the hope of making a profit

Question 9

Business Manager

Answer 9

Runs a business on a day to day basis, ensuring that it makes profit. A business manager may have an idea for solving problems, meeting a market need in order to satisfy target market