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29 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Entrepreneur |
Person who identified successful business opportunities, risks time and money to start and operate a business bringing resources together with the intention of generating wealth |
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Entrepreneurship |
Variety of activities that lead to the creation of new value, wealth , commercial enterprise and profit |
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Functions of entrepreneur |
Conceptualising - forms new ideas
Planning - identifying targets and goals and ways how to accomplish
Access funding
Organising the business - keeping record and documentation, organisation structure of authority etc
Operating the business- ensuring activities are carried out in the different areas
Evaluating performance of business - effective for controls are in place , jobs are being done etc
Risk bearing - making risky decisions hoping profits are great |
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Importance of entrepreneur to the country |
Provides jobs Provides goods and services for citizens Increases total value of goods produced each year (GDP- measure by government to help planning the country ) Utilise local raw material Helps earning foreign exchange needed for business activity |
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Step |
Creative - ability to develop novel ideas and new ways of doing things Innovative - developing a new idea or making changes to an existing one Flexible - react quickly to changes ( economic , market ) Goal-oriented -high need to accomplish a specific task or goal Persistent and persevering - determined to reach a goal or target and believing things will work despite the risks Risk taker - likes challenges , confident they will be successful |
CIFGPR |
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Reasons entrepreneur wants to establish a business |
Desire for financial independence - making own decisions regarding your wealth Self fulfilment - get more rewards and satisfying creative needs Self actualisation - satisfaction of ones need to fulfill their potential |
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Steps for establishing a business |
Conceptualisation Research ( analysis of customer wants etc ) Identification of resources ( financial , material human ) Business Plan Acquisition of funds Operation of business ( functions and activities of the business) |
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Business Plan |
A document outlining the entrepreneur hopes to achieve from being in business , the way , aims , organisation of resources to meet goals |
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Legal department |
Responsible for ending the business adheres to the government regulations and protects the business from illegal action taken by outsiders |
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Conduction research establishing a business |
1. Desk or Secondary Research - information that had already been collected .. sales figures , stock exchange , government publications , info from competitors 2. Field or Primary Research -collection of primary data , info that hasn’t exist .. questionnaires , interviews , surveyes, test marketing |
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Necessity for planning in operating a business |
- gives direction Avoiding mistakes Forces managers to look ahead and anticipate possible changes Sets standard for control purposes , that is , providing measurement to compare what happens in the business |
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Short term plans (operational ) |
For day to day activities |
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Medium term plans (Tactical) |
These are set at the department level ad may cover periods if over 1 year |
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Long term plans (strategic) |
Major decisions and long range plans for the organisation... like introducing a new product , purchase other companies or expansion |
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Feasibility study |
Analysis of the viability of a business idea and an examination of the different aspects of operating a business |
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Feasibility study examines |
Market demand Target market Profitability Operating expenses Competition Cash flow Resources required Legal requirements |
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Benefits of preparing business plan |
Ensures careful research is conducted into the feasibility of the business Anticipates needs and problems which can be planned for in advance Provides a written document that can be used when requesting financing |
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Elements of the business plan |
Executive summary - clear picture of the main points , objectives , owners , description of the product , legal form of ownership Operational /productions plan -description of goods/services , Labour skills requires , quality control , technology required etc Marketing plan - organisation of the marketing department , market research , pricing strategy , distribution strategy , promotion strategy etc Financial plan - purposes for which finance is needed , production costs , projected performance, capital instruments , collateral Organisation and Management Plan- organisation structure , Human Resources |
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Business general procedures (global rules/local rules ) |
1.Decide on the ownership type 2. register with registrar of companies 3. Provide necessary documentation along with a fee to the registrar |
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Business legislations in different countries |
Labour laws Food business workers must have a food permit Pricing regulations Income tax Consumption tax Zoning legislations Property assessment taxes |
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Guarantor |
Personal savings Funds from partners Loans from banks Venture capital ( funds for new business with potential) Government loans Credit transactions |
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Collateral |
Money or property pledged as security for repayment of a loan |
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Guarantor |
Gives legally binding Peronist to be responsible for the debt of another person |
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Examples of collateral |
Property Cash surrender of life insurance Motor vehicles Stocks Bonds |
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Importance of collateral |
Often Used to access the money needed to start a business |
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Legal issues |
Activities that are guided by the laws of a country that must be followed |
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Ethical issues |
Beliefs about what is right and wrong behaviour or actions |
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Consequences of unethical and illegal practices |
Misleading Ad- deceptive , promises things that may not happen people will waste money Withholding of tax - cheats the government of revenue needed to pay workers and fix roads etc Unethical disposal of waste - pollution of air , soil , may cause health threats Money laundering (money illegally gained )- government has inaccurate measure of the flow of money , people will be spending more and prices will increase and caused inflation (situation in which prices are rising rapidly ) |
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Inflation |
Prices are rising rapidly |
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