The Entrepeneur Flashcards
An entrepeneur is someone who:
- identifies successful business opportunities
- risks time and money to start and operate a business
- brings resources together with the intention of generating wealth
Conceptualizing is…
Forming a new business idea and turning it into a product to generate sales
Planning is…
identifying targets, goals and objectives so that production can flow smoothly and to guard against business failure
Accessing finances involves…
identifying the various sources from which finance can be obtained
What is Collateral?
Collateral is an valuable asset that can be used when a loan is being applied for
Organizing involves…
Organizing the business resources, creating a formal structure of activities and making decisions on the location
Operating the business is…
Ensuring the day-to-day activities are carried out in the different functional areas
Evaluating performance includes…
Having effective controls in place to ensure that there are no underperforming areas of the business
What is a risk?
Any situation with more than one outcome that is unknown
An entrepeneur takes risks and…
Hopes that the profits will be great
Some reasons for starting a business are:
- Desire for financial independence
- To have control of working life
- Aspires for self-fulfillment and satisfying creative needs
- Seeks self-actualization
List four roles of entrepreneurs in economic development
- Providing goods and services to citizens
- Creating employment opportunities
- Contribute to nation building by paying taxes
- Increase the overall total value of goods produced each year
- Utilize raw local material to produce goods
- Help earn foreign exchange for the business activity in the country
- Provide competition for existing businesses
