Section 3 Flashcards
Who are entrepeuners
Entreupeneurs are persons who identify business oportunities, risk time, money and resources, start and operate a business with the intention of creating wealth
What is entrepeuneurship
Entrepeuneurship refers to the different activities which lead to the creating of value, wealth and profit
What are some personal and leadership traits of an Entrepueneur
Risk Bearing
Innovative
Creative
Motivated
Flexible
Goal Oriented
Persistent
Persevering
How is an entrepenuer imprtant to his country
Provides goods and services
Contributes to GDP
Reduces unmeployment
Helps earn foreign exchange
Utilizes raw materials
What are some reasons for starting a business
A desire for Financial Independence
Self-Fulfillment
Self Actualization
Increased Income
Increased control of working life
Define primary research
This is research which does not exist and comes from the original sources. The data had never been collected previously
Define secondary research
Secondary research is research which already exists and has already been collected.
What is the purpose of a feasability study
To determine viability
To estimate costs
To present possible sources of income
What is short term planning
Short term planning refers to planning done for a short period of time, usually less than a year and is precisely formulated
What is long term planning
Long term planning refers to major decisions and long term plans for the business.
What are some factors affecting location of a business
Geographical Factors
Labour Supply
Availablity of Raw Materials
Availability of Infrastructure(Water,Electricity,Networks)
Government Regulations
Availability of Health Facilities
What is collateral
Collateral is money or property used as security for a loan in the event that the loan cannot be repaid. If the loan cannot be repaid, the collateral will be ceased by the lender.
What are the steps in creating a business
Conceptualizing
Market Research
Identification of resources
Creation of a business plan
Acquisation of Funds
Operation of the business
What are the roles of an entrepeuner
Conceptualizing
Planning
Financing
Organizing
Operation of the business
Evaluating
Risk-Bearing
What are some reasons for creating a business plan
Aids and Guides decision making process
To attract potential investors
Provides an outline about the goals of the business for those financing it
Helps entrepeuneur to monitor progress
