Topic 1 - Job Opportunities for Entrepreneurship as a Career Flashcards
Analyze organizational practices, identify weaknesses, and recommend solutions.
Business Consultants
Types of Enterprises according to concept
a) NEW-NEW
b) OLD-NEW
c) OLD-OLD
How to Create New Ventures
a) Boostrapping
b) Minipreneurship
c) Funding
This usually means creating or stumbling on a new idea or concept, and creating or inventing something radically new. The inventor then builds a new business around this product.
New-New enterprise
An enterprise that is built on an existing concept. This usually means creating a new business based on the existing concept.
Old-New enterprise
An enterprise that involves an existing concept and an existing business
Old-Old enterprise
Through highly creative acquisition and use of (sometimes other people’s) resources.
Founding or running a company using only personal finances (savings and credit) and or operating revenue.
Relies greatly on networks, trust, cooperation, and wise use of existing resources.
Bootstrapping
Main objective of Bootstrapping
For the venture to stay alive
Pros of Bootstrapping
The entrepreneur maintains control of the venture
Cons of Bootstrapping
Increase financial strain
consumers who create, produce and trade goods, services and experiences.
Minipreneurship
a person whose business is based on the expert knowledge or experience that person has acquired and how they leverage the Internet.
Minipreneur
Example of minipreneurship
ebay trading, blogging, vlogging, podcasting, online stores, online training, freelance research, copywriting and editing, consultancies, and transciption services, etc
borrowing funds from another party - e.g.,
banks, credit cards, family or friends
debt
provide financing in exchange for part ownership in the business
equity
(1) financial gift given for a specific purpose by a government agency or a charitable organization
(2) assistance and shared services from a business incubator or an accelerator
Grant
Types of Debt Financing Solution
Working Capital Loans
Invoice Factoring Loans
Business Overdraff Loans
Hire-Purchase Loans
A funding option that offers immediate influx of cash to cover companies daily expenses
Recommended for short tem financial goal
Working Capital Loans
A funding option that is granted to companies in exchange for their account receivables or outstanding invoices.
Suitable for SMEs due to its flexibility in funding approval.
Invoice Factoring Loans
Types of Equity Financing
Angel Investors
Venture Capitalism
Crowdfunding
Initial Public offering
A funding option that attaches the line of credit to the firm’s business bank account allowimg the firm to access capital beyond their credit limit.
Suitable for SMES for it’s flexibility in term limit
Business Overdraff Loans
a funding option that allows a company to acquire control or manage the asset by making an initial down payment and paying the balances on instalment basis
enable SMEs with low cash flow to acquire expensive yet essential assets
Hire-Purchase loans
