30% Short Answer Flashcards
(21 cards)
Entrepreneurship defintion…
The process by which individuals pursue opportunities without regard to resources they currently control.
Enterprise definition…
Is an alternative term for a commercial organisation or firm, as in the expression SME.
Entrepreneur definition…
Entrepreneurs are those persons who seek to generate economic and social value through the creation or expansion of economic activity, by identifying & exploiting opportunities for new products, processes, markets, and for meeting outstanding social and environmental needs.
5 Types of enterprises…
Salary substitute Life style Growth firms Owner manager Entrepreneurial firm
How were small firms defined by the 1969 committee of inquiry on small firms ?
- Broadly defined as firms with less than 200 employees.
What did the 1971 Bolton Report say about the contribution of small firms to the UK economy ?
- Small Firm Sector is of substantial importance to the UK Economy.
- Despite this it is in a state of Long-term Decline.
- Contribution of Small Businessmen to the Vitality of society is inestimable
- Same for the USA
How has entrepreneurship contributed to micro, small and medium enterprises according to Leutkenhorst ?
- generating employment;
- boosting employment and leading to more equitable income distribution;
- providing livelihood opportunities through the activities of value adding process;
- nurturing entrepreneurship;
- and supporting the building up of systemic productive capacities and the creation of resilient economic systems, through linkages between small and large enterprises
What are Boltons 8 important economic functions of SMEs ?
Employ People Who don’t want to be a Small Cog Need to be in Small for Industry Act as Specialist Supplier Add to Variety of Products/ Services Provide Competition Source of Innovation Space for New Industries Means of Entry into a Business
What does Lord Young say enterprise involves ?
Lord Young
1985 Secretary of State for Employment
2012 Advisor on Start-up Development of Small Business
Enterprise involves ‘generating and taking ideas and putting them to work, taking decisions and taking responsibility, taking considered risks, welcoming change and helping to shape it (and) creating wealth’
What was the UK’s Small business service (2000) action plan ?
The Action Plan further defining Entrepreneurship as ‘the mind-set and process by which an individual or group identifies and successfully exploits a new idea or opportunity’
What has research showed entrepreneurship is a catalyst for ?
Previous research showed that entrepreneurship is a catalyst for economic growth, new firm’s creation, job creation, innovation, and productivity.
What % of UK businesses are SMEs ?
In 2016, there were 5.5 million businesses in the UK, of which 99.3% were small and medium enterprises.
How much do SMEs contribute to UK employment ?
Small and medium enterprises employed 15.7 million people in the UK in 2016.
What gross value do SMEs add to the UK economy ?
Estimates the Gross Value Added of SMEs as £1.8 trillion or 47% of (private) sector turn over in the UK.
What are the 5 forms of idea generation ?
Market pull (personal) Market pull (general) Tech push (personal) Tech push (general) Mega trends
What are Burns’ 5 recognised characteristics of entrepreneurs ?
Need for achievement Need for independence Creativity, innovation and opportunism Acceptance of measured risk and uncertainty Internal focus of control
How do entrepreneurial characteristics fit into 3 categories ?
Personal character traits
Culture and sub cultures
Situational factors
What characteristics help entrepreneurs form and shape new ideas ?
Prior experience Cognitive/strategic factors Social networks Creativity Decision making and risk mitigation.
How can entrepreneurs sift out good ideas from bad ones ?
Personal filter
Business filter
External filter
Execution filter
Definition of innovation ?
Invention + commercialisation
What is an elevator pitch ?
A short pitch describing who you are and your idea in a concise yet compelling manner.
