Entrepreneurship Flashcards
(19 cards)
What is entrepreneurship
Involves taking a risk, either to create a new business or to greatly change the scope and direction of an existing one
What is an entrepreneur
A person with vision, drive and creativity who are willing to take the risk of starting and managing a business to make a profit
What is a small-business owner
Managers or people with technical expertise who started a business or bought an existing business and made a conscious decision to stay small
What are the 3 types of entrepreneurs
Classic
Multi-preneurs
Intrapreneurs
What is a multi-preneur
An entrepreneur who starts a series of companies
What is an intrapreneur
An entrepreneur who doesn’t own their own company but applies their creativity, vision and risk-taking within a large corporation
What are the 4 reasons as to why people become entrepreneurs
Desire to control their own destiny
Financial independence
Feeling of personal satisfaction
Creating the lifestyle they want
What are 5 characteristics of successful entrepreneurs
Special drive
Perseverance
Passion
Spirit of adventure
Managerial and technical ability
What are the 9 elements of a business plan
Executive summary
Vision and mission statement
Company overview
Product and / or service plan
Marketing plan
Management plan
Operating plan
Financial plan
Appendix of supporting documents
What are 3 common causes of business closure
Economic factors
Financial causes
Lack of experience
What are 3 advantages for small business owners
Greater flexibility and an uncomplicated company structure
Serve specialised markets
Innovative product ideas can be developed and brought to market quicker
What are 3 disadvantages for small business owners
Limited managerial skills
Difficulties obtaining adequate financing
Complying with laws and regulations is more expensive for small firms
What are 3 characteristics that make the small-business industry attractive
Low initial capital investment
Some special skill requirements
High growth and profit potential
What is a franchise
A license to operate an individually owned business as though it were part of a chain of outlets or stores
What are the 3 types of franchises
A manufacturer authorising retailers to sell a certain brand-name item
A producer licenses distributors to sell a product to retailers
A franchisor supplies brand names, techniques or services instead of a complete product
What are 3 advantages of franchising to the franchisor
Fast and well controlled distribution of its products
No need to construct and operate its own outlets
More working capital available for expanded production and advertising
What are 3 advantages of franchising to the franchisee
Opportunity to start a proven business with limited capital
Guaranteed customers
Franchisor available for advice and guidance
What are 2 disadvantages of franchising to the franchisor
Failure of the franchisee to operate the franchise properly
Disputes with and lawsuits by franchisees over the terms of the franchise
What are 2 disadvantages of franchising to the franchisee
Franchisor retains a large amount of control over the franchisee’s activities
Franchisor opening competing franchises within the franchisee’s market
