Chapter 2: Entreperenuership

Question 1

What does “entre “ mean

Answer 1

to enter

Question 2

What does “prenendre “ mean

Answer 2

to take

Question 3

What does Entrepreneurship mean

Answer 3

Entrepreneurship as someone entering the world of business to utilize an opportunity to make money

Question 4

What is an entrepreneur ?

Answer 4

An entrepreneur is a person who is able to spot an opportunity or gap in the market and the collects the neccessary resources in order to take advantage of the opportunity identified to establish a business

Question 5

What is push factor

Answer 5

refers to the negative conditions or influences that drive individuals away from a situation

Question 6

Name 3 examples of push factors

Answer 6

Unemployemnt
Job security ( feel safe )
No formal training (cant find a job)
Disagreement with current employer (to start your own business)

Question 7

What is a pull factor

Answer 7

positive or attractive conditions that draw individuals to a situation.

Question 8

Name 3 examples of pull factors

Answer 8

Independence
Recognition
Self accoustaion (Maslow hierachy )
Personal employemnet and wealth

Question 9

What is the unemployment rate

Answer 9

32 %

Question 10

Characteristcs of an entrepreneur/ entereprenuerial charcterics

Answer 10

Motivation
Flexiablity
Self - reliance
Opportunity seeking
High risk tolerance
Dertamination

Question 11

Explain the entereprenuerial characteric Opportunity Seeking

Answer 11

seeking new opportunities as they are often not satisfied with the current practices of doing things or products and or services. Seeking Opportunites that will enable them to make profit by finding better ways to satsify the customers needs and wants

Question 12

What are ways the business can satisfy needs and wants ?

Answer 12

The introduction of a product or service in the market to make consumers aware of a new need

Question 13

Explain the entereprenuerial characteric Creativity and Innovation ?

Answer 13

Constantly innovate and identify a better and more innovative way of delivering a product or service

Question 14

Explain the entereprenuerial characteric Risk tolerance ?

Answer 14

Entrepreneur must be willing to take risks
The enterepreur will be taking both a financial and personal risk when starting an enterprenurial venture

Question 15

Explain the entereprenuerial characteric Determination and presevernce ?

Answer 15

To start a business takes determination ,presevernce and total comintment from the entrepreneur .
success requires the enterepreur to make sacrifices and remain determined and focused on their goals to overcome challenges

Question 16

Explain the entereprenuerial characteric Self reliance ?

Answer 16

Entrepreur doesnt wait for anybody to tell them what to do , entrepreur is a self starter that is resourceful ,prepared to make a decisions and doenst depend on others for things to get done .

Question 17

Explain the entereprenuerial characteric Flexiablity ?

Answer 17

Any entrepreneur venture may face a variety of challenges and uncertains and the enterprenur has to be willing and able to adapt current practices to overcome these challenges.Useing management tasks

Question 18

What are the 3 enterepreneurial venture charcterics

Answer 18

Innovation
Growth Potential
Sound Objectives

Question 18

Explain the entereprenuerial characteric Motivation ?

Answer 18

Entrepreneur usually have an lotus(internal drive ) of control that motivates them to success .They also have a clear vision their strategies and formulates plan to achieve goals

Question 19

What is the difference between a business and business venture ?

Answer 19

Business - Profit
Business venture - has the potential to generate a profit and to achieve growth

Question 20

What does Innovation as an enterpreurial venture chacteristic entail

Answer 20

B- just managing to survive will maintain the status quo and keep offering original good/services
BV- continuously looking for a new and better way to satisfy customers needs and wants

Question 21

What does Growth Potential as an enterpreurial venture chacteristic entail

Answer 21

B- aims to survive and is satisfied with the current customer base only
BV- always looking for ways to grow by innovating and offering its products /services to a broader target market

Question 22

What does Sound Objectives as an enterpreurial venture chacteristic entail

Answer 22

An entreprenuerial venture is one that formulates clear on\bjectives and works towards achieving them .E.g entering new markets and developing existing markets by growing the growing the current market share

Question 23

Name the types of enterprenuers

Answer 23

Techno- entrepreneur
Social -entrepreneur
Enviro - entrepreneur
Tourism - entrepreneur
+3 new enterpreneurs

Question 24

What are the 3 new types of enterprenuers that have

Answer 24

Youth entrepreneurs (18 -35 years ) Emerging entrepreneurs Informal entrepreneurs

Question 25

What's a techno- enterpreneur

Answer 25

These enterprenuers look for ways to develop technology or use technology to grow their business .Eg Checkers sixty sixty app

Question 26

What's a Social - entrepreneur

Answer 26

Entrepreneurs start ventures to solve social problems in society( crime,Unemployement ) - usually NGO's

Question 27

What does NGO stand for

Answer 27

Non Governmental Organistaions

Question 28

What's a Tourism -entrpreneur

Answer 28

This entrepreneur identifies gaps in the tourism industry and them offers goods or service to attract tourists to the country Hotels, Sight seeing tours

Question 29

`What's the difference between an Entraprenuer and an Altrapreneur

Answer 29

An entrapreneur is an employee who creates a business Altrapreneur is someone who owns many businesses

Question 30

What's an Emering Entrepreneur

Answer 30

term used to describe an entrepreneur who has previously been disadvantaged ( disabled people) - they earn tenders

Question 31

What's an Informal Entreprenur

Answer 31

Operates in the informal sector Don't pay tax and no fixed location The informal Entreprenur plays a positive role in he economic development of a country as it creates jobs ,contributes to skills development and even encourages growth

Question 32

What's a Youth Entreprenuer

Answer 32

PPE establishes to encourage youth Entrepreneurship . these initiatives assist in training the youth through proactive enterprenurial programs as they also provide necessary resources and ongoing support to these budding entrepreneurs .

Question 33

What does PPE stand for

Answer 33

Private Public Partnerships

Question 34

What does NYDA stand for

Answer 34

National Youth Development Agency ( Government focuses on integrating youth through initiatives and programs )

Question 34

What are the 4 paths to entrepreneurship

Answer 34

1.Starting an new business 2.Buying an already established business 3. Frachise 4. Family Business

Question 35

True or false : Starting a new business is more costly and risky than buying an already established one

Answer 35

True

Question 36

What are the aspects entrepreneur has to consider when buying an already established business

Answer 36

1. Reasons for the sale of the business 2.Customer base of the business 3.Financial position of the business 4. The industry the business operates in 5.Contracts the business has already entered 6. Profitability of the business 7. The business form of ownership 8. Rental agreements 9. SARS requirements

Question 37

Buying a Franchise

Answer 37

Buying a Franchise means entrepreneur gats a business where the name / brand is already established and successful. Basically buying right to use the name,logo and production system and overall success of the business

Question 38

What the Franchisor

Answer 38

Sells business to you

Question 39

What a Franchisee

Answer 39

Buys business from Franchisor

Question 40

Family Business

Answer 40

High success rate as grown up in business and developed skill throughout the years

Question 41

What are the 4 steps in the entreprenurial process ?

Answer 41

Step 1- Identifying an opportunity Step 2- Assessing resources required Step 3 - Developing the business plan Step 4- Mangaing the Entreprenurial venture

Question 42

True or false : Entrepreneur doesn't find opportunities

Answer 42

FALSE Entrepreneur must look for opportunities which are attractive and long lasting

Question 42

What sections does does the business contain ?

Answer 42

TITLE PAGE-This page contains the name of the business ,businesses address ,contact details of business and entrepreneur TABLE OF CONTENTS - will list the different sections of the business plan with relevant page numbers EXECUTIVE SUMMARY - looks at each aspect of the business briefly MARKET ANALYSIS - looks at market business is entering into .It will asses and describe the customers behaviour and patterns as well as relavate competitors Marketing Plan- details regarding the businesses marketing and promotional statetgies Financial Plan- This section the business will provide particulars of the income earnings potential of the idea/opportunity - viablity study Production Plan - gives detail regarding the entreprenurs plans to transform factors of production into goods/ services to sasify customers needs and wants Oragnaisational Plan-Provides particulars of the necessary positions and skills needed in the business . Appendix -All Additional but important information ,that add value to understanding the Business plan ( Glossary )

Question 43

What are the factors that can give a business a competitive advantage

Answer 43

Price Time Customer convince Experience of the customer Product differntiation

Question 44

What are the 5 stages of business growth / development

Answer 44

Stage 1: Incubation Stage 2: Start up Stage 3 : Breakthrough Stage 4: Maturity Stage 5: Decline/ Rejuvation

Question 45

What happens in the stage of INCUBATION?

Answer 45

This stage is often called the pre birth stage of the business .This is were entrepreneur has identified an opportunity and asses the feastiality and viablity of it and the possible problems that may arise

Question 46

What happens in the stage of START UP ?

Answer 46

Production and trading will commence during this stage .Some problems may include such as not reaching the breaking point and try and fix them

Question 47

Which stage are growing pains experienced

Answer 47

Start up stage

Question 48

What happens in the stage of BREAKTHROUGH?

Answer 48

During this stage of development the rate at which the business will grows increases . Managing breakthrough could be difficult as the business could face a variety of problems such as - cash flow, Labour and skills and delivery /distribution

Question 49

What happens in the stage of MATURITY ?

Answer 49

This stage is when the business has reached a point where it has established itself in the market , it has a loyal customer base and has captured a share of the market

Question 50

What happens in the stage of DECLINE/REJUVATION ?

Answer 50

The entrepreneur will need to protect their competitive advantage by constantly looking for methods to design product/services to prevent it from reaching a decline .