Entrepreneurship
What is the definition of entrepreneurship?
The process of creating and operating a new business while taking on risk to make a profit.
What is one source of business opportunity?
Innovation, market opportunities, changing customer needs, R&D, technology, global markets.
What is one common motivation for starting a business?
Financial independence.
What does the “S” stand for in SMART goals?
Specific.
What is a business concept?
An idea for a business, including the product, target market, and how it will be delivered.
Name one personal characteristic of a successful entrepreneur.
Initiative (or self-motivation, resilience, innovation, etc.).
Give an example of how changing customer needs can create a business opportunity.
Increasing demand for eco-friendly products.
How does fulfilling a social need motivate some entrepreneurs?
They aim to improve community wellbeing, such as through job creation or environmental initiatives.
Why is goal setting important in business?
It provides direction, motivation, and measurable outcomes.
What role does market research play in business concept development?
It assesses demand, competition, and feasibility of the business idea (not the business concept).
How does entrepreneurship differ from being self-employed?
Entrepreneurs seek to grow and innovate, while self-employment often focuses on managing an existing business or service.
What is an example of a product created from research and development?
Tesla electric cars.
What personal motivation led to the creation of Bombas Socks?
The founders wanted to address homelessness by donating socks for every pair sold.
What are the five steps in the decision-making process?
1. Develop goals, 2. Outline facts, 3. Identify solutions, 4. Analyse alternatives, 5. Choose and implement.
How does innovation relate to business concept development?
Innovation can lead to new or improved products that form the basis of a business idea.
How does entrepreneurship contribute to the economy?
It creates jobs, drives innovation, and increases national income through new businesses.
How can technological development lead to business opportunities?
It can create new products, improve production processes, and enhance service delivery.
What is the difference between financial and social motivation in business?
Financial motivation focuses on profit, while social motivation addresses societal needs.
Give an example of a tactical objective.
Increase profit by 10% within one year. (1-2 year goal)
Why is understanding the target market important for business success?
It ensures the product meets customer needs and increases the likelihood of success.
What are the three key aspects of entrepreneurship mentioned in the textbook?
Pursuit of business opportunities, innovation, and seeking growth.
How did Bombas Socks identify a market opportunity?
They discovered that socks were the most requested item at homeless shelters and built a business around addressing this need.
How can personal experience inspire business creation?
Entrepreneurs often identify gaps in the market based on challenges they've faced or observed.
How can poor decision-making impact a business?
It can lead to financial loss, missed opportunities, and reduced competitiveness.
What is one challenge entrepreneurs face when developing a business idea?
Securing funding, finding customers, or overcoming competition.