Chapter 2 Flashcards
Entrepreneur
A person who spots an opportunity or gap in the market then collects resources to take advantage of the opportunity
How to grow business
To create a loyal customer base
Make more profit benefits entrepreneurs because…
compensation for the risks they took
Entrepreneur requirements (ORGRR)
Opportunity
Resources
Growth
Risk
Reward/profit
Push factors
Unemployment
Job security
No normal training
Pull factors
Independence
Recognition
Self actualisation
Characteristic of an entrepreneur
Opportunity seeking
Creativity
Hugh risk tolerance
Self reliance
Motivation
An Entrepreneurial business venture…
Has the potential to generate profit
Entrepreneurial venture characteristics (3)
Innovation
Growth potential
Sound objectives
Types of entrepreneurs (4)
Techno
Tourism
Social
Environment
New entrepreneurs
Emerging
Informal
Youth
Competitive advantages
Price
Time
Product differentiation
Experience of the customer
Customer convenience
Push definition
Negative factors that force people to become entrepreneurs
Pull factor definition
Positive factors that pull (attract) entrepreneurs to make their choice
Unemployment rate
32,7%
Unemployed definition
Between the ages 16-65
Willing and able to work
Actively looking for employment
Cyclical
When demand throughout the economy declines
Structual
Differences between the skills of the unemployed and jobs available
Frictional
When workers go unemployed to find a new job after quitting the previous one
Maslows heirachy of needs
Physiological
Safety
Love
Esteem
Self actualisation
Physiological
Water food sleep
Safety
Security of employment family property
Love
Friendship family sexual intimacy
Esteem
Confidence achievement respect
