Chapter 1.2 Flashcards
(26 cards)
Personal characteristics/Personal qualities of entrepreneurs
-Perseverance
-Commitment to business
-Involvement in business
-Willingness to take risks
-Sound human relations
-Creativity and innovative ability
-Positive attitude and approach
Perseverance
Confidence in self and business in spite of setbacks and problems
Commitment to business
Dedication of skills, expertise and resources to establishing and building the business
Involvement in business
-Personal involvement in the business and awareness of business matters
-The entrepreneur performs tasks themself and communicates well with staff and others involved
Willingness to take risks
The entrepreneur takes calculated risks
Sound human relations
Work closely with other people and maintain good relations with suppliers, clients and others involved in the business
Creativity and innovative ability
Generate new and useable ideas to solve problems / exploit opportunities
Positive attitude and approach
Acceptance of disappointments and the ability to learn from setbacks
Functions of a business
-General Management Function
-Production/Operational Function
-Financial Function
-Purchasing Function
-Human Resources Function
-Marketing Function
-Administrative Function
-External relations function
An entrepreneur should have a combination of these management skills/Aspects of management skills
-Planning
-General Management skills
-Customer service
-Knowledge of competitors
-Market orientation
-Quality products / services
-Accounting for your own expenses
-Insight into expenditure , income, profit and loss
-Ability to use income wisely
Planning
Its part of general management and it involves drawing up the business plan
General management skills
-Knowledge of what is required to obtain success and the development of skills
-Its the awareness of strengths and weaknesses and the ability to supplement weak areas
Ability to use income wisely
Exercise financial discipline and understand what to spend on to ensure success
Customer service
It involves marketing and administrative functions
-Maintain good human relations to provide good customer service
Knowledge of competitors
Know:
-Who the competitors are and how many they are
-The size of the competitors operations and the segments of the market that they control
-The quality of their good and services and their strengths and weaknesses
Market orientation
Forms part of the marketing Function
Know:
-Who/What the target market is and its needs and demands
-How to meet the needs and demands profitably
Quality products/Services
-Ensure that the quality of the product is consistent with the price charged
-Ensure value for money
Accounting for your own purposes
Have a simple but effective accounting system thats easy to understand
Insight into expenditure, income, profit and loss
-Understand differences between income and profit and have the ability to calculate profit and show a loss
-Understand the implication of increased expenses
Dealing with external factors that affect the business
-Economic conditions
-Technological changes
-Social and cultural forces
-Political and legislative variables
-Physical variables
-International forces
Economic conditions
Adapt to fluctuating interest rates/ declining levels of customer buying power
Technological changes
Keep up with technological developments and know how to exploit them for the benefit of your business
Social and cultural factors
Be able to identify opportunities for growth in the markets
Political and legislative variables
The entrepreneur must realise the opportunities that arise after political adjustments and events
