Relevance of Entrepreneurship to an Organization Flashcards
the growth or establishment of a small enterprise is the specific contribution of entrepreneurship in every economy of the world.
helps the economy grow
provides entry-level jobs that are so necessary to learn or acquire experience for unskilled employees.
CREATION OF JOB OPPORTUNITIES
Entrepreneurship promotes creativity that brings new ideas, products, technology, the industry, the quality of goods, etc. to the economy, thus rising gross domestic products and people’s standard of living
INNOVATION
promotes abundant retail facilities, a higher level of homeownership, fewer slums, better sanitation standards, and higher expenditure on education, recreation, and religious activities
IMPACT ON COMMUNITY DEVELOPMENT
If the business or company collapses, many will lose their jobs; suppliers and financial institutions face a crisis of recovery
THE CONSEQUENCE OF BUSINESS FAILURE
entrepreneurship is the most productive way to incorporate those who feel discarded and excluded into the economy
POLITICAL AND ECONOMIC INTEGRATION OF OUTSIDERS
Entrepreneurship is a breeding ground for new inexperienced adventurers
SPAWNS ENTREPRENEURSHIP
Entrepreneurship, by its creativity, provides enormous types of good and different natures
ENHANCES THE STANDARD OF LIVING
Entrepreneurship offers research and development funds to universities and academic institutions.
PROMOTES RESEARCH AND DEVELOPMENT
The brief introduction to your business plan
It describes your business, the problem that it solves, your target market, and financial highlights
Written last but appears first in the business plan
Executive Summary
Furnish relevant information about the company, its legal operation, the principal owners, and key personnel.
Mission Statement
What you want to accomplish (specific goals that can be measured), as well as how you’d achieve your goals.
Objectives & Key to Success
Start-up cost, marketing, sales, and inventory cost.
Funding for the company comes from two major sources: owners’ investments and bank loans.
Financial Requirements and Features
The what and why of your business.
This is where you elaborate on what you do (and the product or service you offer), who you serve, and why you’re different (and better) than the competitors.
Business Description
One individual who owns and operates the enterprise.
Sole Proprietorship
General Partnership vs. Limited Partnership
Partnership
A blend of sole proprietorship/ partnership and corporation Owners have liability protection like corporations but less paperwork. Member or owner is allowed a full participatory role in the business’s operation.
Limited Liability Company (LLC)
A business organization that’s intended to promote educational or charitable purposes.
Nonprofit
The enterprise exists as a legal entity separate from its owners. This type of business structure separates the liabilities and obligations incurred by company operations from being the responsibility of the owners.
Corporation
Designed to provide enough facts to convince an investor, potential partner or other reader that your business has enough customers in a growing industry and can earn sales DESPITE the competition.
Market Analysis
The competition section indicates where your products or services fit in the competitive environment.
Think as broadly as possible when devising a list of competitors by characterizing competitors as any business customers may patronize for similar products or services.
Competitive Analysis
This section of your business plan describes both the strategy and tactics you will use to get customers to buy your products or services.
SALES AND MARKETING PLAN
Best way to expose your services/products/ brand identity to possible customers
Marketing Channel
Logo, business cards, website, etc.
Marketing Materials
Cost-plus pricing, Demand pricing, Competitive pricing, Price skimming, Penetration Pricing, Value Based Pricing
Pricing Strategy
Describes your management team, staff, resources, and how your business ownership is structured.
OWNERSHIP AND MANAGEMENT PLAN
Designed to describe just how the business functions on a continuing basis.
OPERATING PLAN
A summary of your funding criteria, your detailed financial statements and an overview of your financial statements must.
Financial Plan
The place to include any additional documents that will help to build the legitimacy of your business concept, your product, marketing, services and so on.
Appendices & Exhibits
