Professional Practice T2 2014 Flashcards
Fully define the concept of an Entrepreneur
*As per relevant lecture
An entrepreneur in an individual who, having conceptualized a marketable service &/or product and challenged with a number of calculated risks is prepared to commit capital in a capitalistic economy to start a profitable commercial venture.
The definition of an ‘Entrepreneur’
The seven components/aspects
(These points must come with “discussion”)
> an entrepreneur is an individual [+discussion]
> who having conceptualized (who has come up with) [+discussion]
> a marketable service &/or product [+discussion]
> & challenged with many calculated risks [+discussion]
> is prepared to commit capital [+discussion]
> in a capitalistic economy [+discussion]
> to start a profitable commercial venture [+discussion]
There are 10 personal character traits that will help you succeed as a successful practicing photographic entrepreneur
List & concisely discuss
- Good personality
- more than just pleasant manner/good appearance. It extends to being thoughtful of others & finding ways to please the ; encompasses a helpful/tactful attitude in all personal relationships - Emotional maturity
- as a mature person you are able to understand the points of view of people without undue emotional involvement. You control your temper & willingly forego the use of (destructive) criticism/profanity & sarcasm. In your client relationships you are aware that the client is not always right but you know that disagreeing with is bad business & losing the client would be senseless - Dependability
- you don’t forget appointments / arrive late for them. You keep all promises (calling people /delivery promises ) regardless of personal cost of time & effort. - Good judgment
- requires common sense / a sense of what is practical -& it involves the ability to size up a situation , to think logically & distinguish between genuine opportunities. It allows you to evaluate conditions in the trade , to expand or contact operations properly , to plan well (intelligently) & to think problems through . - Business perspective
- you must have some basic business sense ,
therefore meaning that you are able to negotiate/ think on your feet/ quickly make basic calculation. As a business person(with business perspective) you have the ability to see/identify a business problem. - Honesty
- honesty is important in all business relationships. It is a fundamental trait for all long term business success.
“Fair play & fair play” for all employees , honest advertising, fair dealings with suppliers , clients & others offering similar services(& honestly in every conceivable relationship) - Assertiveness
-means you pursue objectives vigorously. You show determination & enterprise in the conduct of your business affairs.
In the early stages of your business assertiveness & willingness to take calculated risks is highly important. - Physical Health
- if you are in poor health with limiting physical handicaps or ;(heart trouble/respiratory ailments ) you are a poos risk as the head of a business. You man die suddenly / circumstances may cause you to retire from active participation. It can prevent you from putting in long hours &mental work needs for establishing a successful business (especially during initial stages of your business) - Readiness of challenges
- if you plan to own a business, you should be able perceive unexploited opportunities regardless of the complaints of other by the task & should be hungry for challenges to accomplish. - Willingness to learn
- life long learning,
your whole life is a learning process you should consequently always maintain an open mind . Not only be learning new things but also to ‘unlearn’ that which is destructive/non- conducive to your personal development on all levels.
You should be constantly learning in artistic , creative , technical,social & intellectual etc
List 3 legal business forms/types recognized in South Africa
- Sole Proprietorship
- Partnership
- Private Company
What are the most appropriate business types for a young entrepreneur ( that is just starting out/after being a photographer’s assistant)
- The Sole proprietor
2. The Partnership
The Sole proprietor may be considered best for the more individualistic photographer.
what are the advantages of a sole proprietorship :
- From a legal point of view it is easy to start and close down a sole proprietorship.
- All income belongs to the owner.
- The functioning of the enterprise is simple and can easily be adapted to changing circumstances.
- You are your own boss and come and go as you please.
- You may work from home, depending on the type of business.
- There is minimal paperwork, and as long as your bookkeeping is fine and you are able to satisfy the tax man, no one will worry you.
The Sole proprietor may be considered best for the more individualistic photographer.
what are the disadvantages of a sole proprietorship :
- The creditworthiness of the enterprise is limited to the assets of the owner.
- Since your mistakes are yours, as the owner you are fully responsible for losses and can lose your private possessions if the enterprise should fail.
- Having been declared bankrupt once, somehow mars your good name.
- Uncertainty regarding its continued existence if the owner dies.
- If it is sold or taken over, the enterprise no longer exists, and it must be founded from the beginning.
- The future of the enterprise is limited not only in terms of its establishment, but also in terms of expansion. A sole proprietorship can develop to a level where it exceeds the owner’s capital means. If more capital is to be secured, it could mean changing the form of the enterprise.
