Role Of Entrpreneaur Flashcards
What is an entrepreneur?
A person prepared to take the risk of engaging (starting) in a business enterprise
Why do we need entrepreneurs?
They create/ launch businesses
- Innovations may improve our standard of living
- Create wealth with their entrepreneurial ventures
- Create jobs
Why launch a new enterprise?
- Profit (made by business)
- Capital gains (made by selling the business)
- Self esteem
- Personal development
- Sense of control
- Satisfaction from building something
What is a start up?
A new business enterprise formed by one or more entrepreneurs
Roles of entrepreneurs
1) Spot the business opportunities
2) Take risks. To gain returns, accept uncertainty
3) Act as a catalyst for creation and growth of business
Sources of business ideas
- Observation
- Experiences (business and personal)
- Brainstorming (research)
- Innovation
What is market mapping?
A technique used to analyse key variables within a market place and identify niches
- Monitor existing brands
- Identify opportunities
Advantage and disadvantage of brainstorming
A: Could generate a remarkable new innovation
D: “Brilliant ideas” come to nothing if they are not based on understanding the market
Advantage and disadvantage of personal experience
A: The insight of an individual condemned could start a new way of doing things
D: A business cannot be built around one customer’s good or bad experience
Advantage and disadvantage of business experience
A: Insight into the mismatch between customer expectations and supplier delivery
D: The original business would surely be able to do the same as its ex- employee
Advantages and disadvantage of analysis of an opportunity
A: Research into a market, it’s segments and its rivals could identify a big opportunity
Catalyst (trigger)
- Business plan
- Operations
- Raise finance
- Recruit new staff
Catalyst (expanding)
- Carry our marketing research to see if there is demand to justify expansion
- Raise necessary finance
- Introduce new products and services
- Invest in new technology, better equipment to improve service
- Tender for contracts
- Take on more skilled staff
Barriers to entrepreneurship
- Personal finance
- Skills
- Poor business idea
- Alleged motives of entrepreneurs: greed and avoidance
- Too much regulation taxes
Why businesses fail early on?
Initial stage
- Weak business idea
- Overambitious idea
- Lack of finance
- Lack of entrepreneurial skills
- Poor initial
