Module 1 Flashcards

Question

What is the process of **SOCIAL ENTREPRENEURSHIP**

Answer 1

Opportunity Recognition - identifying what are the social problems and unmet needs. Concept Development - identification of social rewards; new products and new markets. Resource determination and acquisition - identifying financial resources, human resources and social capital. Launch and venture growth - a measure and result of returns and a means to drive expansion and change. Goal attainment and the exercise of a number of options, e.g., continuing sustaining the mission, exiting as the mission is completed, finding and adding new needs/opportunities/goals and embarking on a new venture.

Answer 2

1. Environment- social entrepreneurship is considered to be dormant in the population until the failure of government and commercial enterprises presents an opportunity for it to emerge. 2. Perturbation- displacements or changes within the regular business by political, cultural, economic, demographic changes, create opportunities for social entrepreneurship. 3. Resources- the provision of access to resources for social purposes will influence persons in entrepreneurial activities. 4. Personal traits-persons who have entrepreneurial traits get the chance to implement their ideas in a non-competitive environment 5. Preparation- persons can be trained properly to spot and create opportunities, and are more likely to do so.

Answer 3

Lack of clear definition of social entrepreneurship and what is a social enterprise. Limited data on the third sector and their operations due to Inconsistent monitoring of progress. Organizations operate Informally With non-existent or inadequate policy, legislative or regulatory frameworks. Focus of organizations tends to be short-term (project focused) and not long-term (output/impact focused).

Answer 4

(i) recognising opportunities- entrepreneurship. This involves the ability to identify gaps in the market where social needs are unmet or where existing solutions are inadequate. (ii) finding resources- This encompasses financial resources, human capital, partnerships, and materials. Social entrepreneurs often rely on diverse funding sources, including grants, impact investments, crowdfunding, and donations, to support their initiatives. (iii) developing an innovation strategy-This strategy should encompass not only the creation of innovative products or services but also the underlying processes that drive their delivery. Social entrepreneurs must assess existing solutions and explore new approaches that leverage technology, community involvement, and sustainable practices. (iv) developing the venture-Social entrepreneurs must create a solid business model that aligns with their mission while ensuring financial sustainability. This involves defining the target market, establishing operational processes, and determining pricing structures that reflect both social goals and market realities. Should also have legal and regulatory framework. (v) developing a rich network-This network includes relationships with stakeholders such as other social enterprises, non-profits, governmental agencies, and community organizations. By building a diverse and supportive network, social entrepreneurs can share knowledge, access resources, and leverage collective expertise.

Answer 5

Ethnicity: Ethnicity involves shared cultural identity, traditions, and group membership. When the environment entails group values for example collectivism duty. loyalty' for instance, the business strategy alignment **is influenced greatly by the ethnic group values.** Gender: Gender and Entrepreneurship Leadership roles in the corporate world are male dominated and despite efforts,** women still face discrimination.** Youth: The grave level of unemployment in many Caribbean countries and the low prospects the existing corporate fabric, has led many of the younger population to explore venture. **With the significant increase in young Entrepreneurs. the future of the Caribbean looks brigh**t. Family: Family members usually understand each other and respect each other's commitment. Therefore unnecessary waste is seldom encountered and investment is encouraged. **Tradition replaces the desire to just make some quick money. Rich and positive family of integrity and loyalty provide the entrepreneurship with depth, stamina, financial bountifulness and assurance of continuity for generations to come.** Religion: In the Caribbean, religion is not seen, as obstacle to entrepreneurship but as an enhancer. The fundamental principles and values of the dominant religions in region promote the values that embody successful entrepreneurship. There are denominations in some religions that dissuade their followers from engaging in their own business for the pursuit of profits and a worldly life. However, some welcome it as a way to Economic development. Politics: Political factors influence entrepreneurship through government policies, regulations, and stability, which vary significantly across cultures. Political stability provides entrepreneurs with a predictable environment to invest and innovate. Socio-Economic Status: Socio-Economic Status encompasses factors such as income, education level, and social class, which affect individuals' access to resources, networks, and opportunities. However...low SES can create barrirers.

Answer 6

(a) entrepreneurship ventures and small businesses are the same thing; (b) all entrepreneurs are rich; (c) entrepreneurs are born not made; (d) entrepreneurship is easy; (e) all you need is money to start; (f) successful entrepreneurship needs only a great idea; (g) entrepreneurs always generate new ideas; (h) all you need is luck; (i) entrepreneurs are extreme risk takers; and, (j) entrepreneurs are motivated primarily by money or profit.

Answer 7

Human Resource (a) (HR)/Management failures: lack of leadership, judgement and knowledge, lack of experience; (b) operation failures: poor inventory management; poor planning; (c) marketing failures: weak marketing strategy; uncontrolled growth; poor location; incorrect pricing; (d) financial failures: poor financial control; inadequate record keeping; (e) failure as a natural part of the entrepreneurial process; and, (f) timing.

Answer 8

(a) having an in-depth knowledge of the business; (b) building a viable business model; (c) using lean start-up principles; (d) knowing when to pivot; (e) having a solid business plan; (f) effective management of financial resources; (g) understanding financial statements; (h) having the right team; (i) effective management of people; (j) having a competitive edge; and, (k) maintaining a positive attitude.

Answer 9

Entrepreneurship **refers to the process of starting and operating a new business, often with an innovative product or** service.Entrepreneurs take on the financial risks associated with setting up and managing a new venture with the goal of gaining profit. They are typically the founders and owners of their businesses, responsible for the strategic direction, growth, and financial success or failure of the enterprise. WHILE... **Intrapreneurship**, on the other hand, involves **employees within an organization** who take on entrepreneurial roles. Intrapreneurs act **as entrepreneurs but within an existing company,** using the **company's resources **to develop new products, services, or processes. **They possess an innovative mindset and autonomy but operate under the organizational structure and resources of their employer.**

Answer 10

Entrep: High personal financial risk and responsibility Owns the business and its profits Responsible for raising capital FULL control over decisions Constantly seeking innovation to differ from competitors Intrap: Lower risk, as risks are absorbed by the company Does not own the business, **ONLY** the product/idea developed. Funded **by the company's resources** Innovats **within** the company structure.

Answer 11

Entrep: A- Full control and ownership Potential for high finacial rewards Oppurtunity to build something new. D- High finacial risk Requires extensive work High levels of stress and responsibility Intrap: A- **Less finacial risk** Access to **company resources** Has the stability of an existing business environment Often recieves financial support from **company** D- Limited **autonomy in decision maing** Possible **lack of ownership over the project's success** Innovation is **confined within the company's goals and framework**.

Answer 12

Dynamic Growth: This type focuses on the rapid expansion of a business. Entrepreneurs in this category aim to scale quickly, often by increasing production or entering new markets. Speculative: Speculative entrepreneurs engage in ventures that carry high risks but promise high rewards. They often deal with investments in markets or industries that are volatile, such as real estate or stocks. Social/Green: Social or green entrepreneurship focuses on creating ventures that address social issues or environmental concerns. Necessity: Entrepreneurs who start their businesses out of necessity typically do so because they face unemployment or lack alternative sources of income. Oppurtunity: Opportunity entrepreneurs are driven by market gaps and opportunities for profit. Unlike necessity entrepreneurs, they are motivated by the potential for success in a new or underserved market, often focusing on high-growth sectors.

Answer 13

Leadership commitment: A strong leadership team that encourages risk-taking and is open to new ideas is crucial for fostering entrepreneurship within the organization.  Access to resources: Entrepreneurs, whether in startups or as intrapreneurs, need access to capital, technology, and talent to innovate and bring new ideas to life.  Culture of innovation: Encouraging experimentation, learning from failure, and maintaining flexibility in operations help drive entrepreneurship. Openness and Flexibility: Entrepreneurial enterprises are characterized by their ability to adapt to market changes and new information. This flexibility allows them to pivot their business models, adjust products, or tap into emerging trends, keeping them competitive in a rapidly changing environment.  Innovation: Both entrepreneurs and intrapreneurs need to push boundaries and continuously improve their offerings. This is achieved through creative thinking, research, and the development of new technologies, business processes, or customer engagement methods.  Proactivity: Successful entrepreneurs and intrapreneurs do not wait for opportunities to come to them they actively seek out opportunities and act upon them. Being proactive also means anticipating market needs and responding before competitors do.

Answer 14

Change and Chaos: Entrepreneurs and intrapreneurs must be prepared to deal with constant change, whether it’s shifts in consumer preferences, technological advancements, or regulatory changes. They need to remain agile and resilient to navigate through chaotic business conditions. Complexity: Modern businesses operate in increasingly complex environments. Entrepreneurs and intrapreneurs need to make sense of numerous variables, such as global markets, technological developments, and stakeholder interests. Their ability to manage this complexity often determines the success of their ventures. Competition: Intense competition requires entrepreneurs and intrapreneurs to continuously innovate and differentiate themselves. Staying ahead of competitors through unique offerings or superior customer experiences is a key strategy for sustained success. Uncertainty and Contradiction: The uncertainty of the business landscape presents risks but also opportunities. Entrepreneurs and intrapreneurs must be comfortable with ambiguity and be prepared to make decisions without complete information. This calls for creativity and a risk- taking attitude to overcome contradictions in the market or within their organizations.

Answer 15

Entrepreneurship is about creating something new—launching innovative ideas, taking risks, and aiming for growth and market disruption. Entrepreneurs thrive on change, often scaling their ventures rapidly or pivoting to seize opportunities. Their mindset is future-focused: "How can we build, expand, or reinvent?" Small business management, on the other hand, is about running an established operation efficiently. The focus is on stability, serving a steady customer base, and maintaining smooth day-to-day operations. Rather than chasing rapid growth, small business owners prioritize sustainability, managing finances, staff, and customer relationships to keep things running smoothly.

Answer 16

Entrep: Growth, innovation scalability, capturing new markets High personal risk Strong focus on developing new products and services Targets brand new markets Entrepreneur driven Agrresive grwoth. SBM: Stability, Profitability and Managing day-to-day operations Lower personal risk, focuses on running existing business Limited focus on innovation Primarily local or niche markets Manager driven Controlled, steady growth

Answer 17

Entrep: A- High potential for growth and profits Innovation leads to competitive advantage Freedom to create and shape the business Potential for high financial rewards D- High personal financial and emotional risks Requires significant time, effort, and resources. High level of uncertainity and failure Stress. SBM: A-Stable and predictable Low financial risk and stress Already has an established customer base Stronger local community and loyal customers, D- Limited growth, low potential for explansion Limited innovation and adaptability to market changes Overdependence on owner.

Answer 18

**Entrepreneurs are defined by their ability to innovate. They tend to bring new ideas, products, or services to market, often in a way that disrupts existing industries or creates entirely new ones.** **While small business managers may innovate in terms of improving existing products, services, or processes, the level of innovation is typically more incremental and less disruptive.**

Module 1 Flashcards

(42 cards)