Role Of Entrpreneaur Flashcards
(20 cards)
What is an entrepreneur?
A person prepared to take the risk of engaging (starting) in a business enterprise
Why do we need entrepreneurs?
They create/ launch businesses
- Innovations may improve our standard of living
- Create wealth with their entrepreneurial ventures
- Create jobs
Why launch a new enterprise?
- Profit (made by business)
- Capital gains (made by selling the business)
- Self esteem
- Personal development
- Sense of control
- Satisfaction from building something
What is a start up?
A new business enterprise formed by one or more entrepreneurs
Roles of entrepreneurs
1) Spot the business opportunities
2) Take risks. To gain returns, accept uncertainty
3) Act as a catalyst for creation and growth of business
Sources of business ideas
- Observation
- Experiences (business and personal)
- Brainstorming (research)
- Innovation
What is market mapping?
A technique used to analyse key variables within a market place and identify niches
- Monitor existing brands
- Identify opportunities
Advantage and disadvantage of brainstorming
A: Could generate a remarkable new innovation
D: “Brilliant ideas” come to nothing if they are not based on understanding the market
Advantage and disadvantage of personal experience
A: The insight of an individual condemned could start a new way of doing things
D: A business cannot be built around one customer’s good or bad experience
Advantage and disadvantage of business experience
A: Insight into the mismatch between customer expectations and supplier delivery
D: The original business would surely be able to do the same as its ex- employee
Advantages and disadvantage of analysis of an opportunity
A: Research into a market, it’s segments and its rivals could identify a big opportunity
Catalyst (trigger)
- Business plan
- Operations
- Raise finance
- Recruit new staff
Catalyst (expanding)
- Carry our marketing research to see if there is demand to justify expansion
- Raise necessary finance
- Introduce new products and services
- Invest in new technology, better equipment to improve service
- Tender for contracts
- Take on more skilled staff
Barriers to entrepreneurship
- Personal finance
- Skills
- Poor business idea
- Alleged motives of entrepreneurs: greed and avoidance
- Too much regulation taxes
Why businesses fail early on?
Initial stage
- Weak business idea
- Overambitious idea
- Lack of finance
- Lack of entrepreneurial skills
- Poor initial
Why businesses fail early on?
during
- Lack of suitable employees
- Lack of managerial skills
- Poor decisions
Why businesses fail early on?
Other
- Anticipated customer doesn’t materialise
- Change in business environment
- Change in competition
What is an intrapreneur?
Person within a corporation who is given the freedom and resources to initiate projects, business ventures
Differences between entrepreneur and intrapreneur
E: Bears all risks, I: Does not bear all risks
E: Profit is the award, I: Attractive salary, promotion, incentives
What is difficult from going from entrepreneur to leader?
1) Learning to delegate
2) Trusting others
3) Listening to many others
4) Having an open mind
5) Being less reactive
6) Developing emotional intelligence
