1
Q
Define small business
A
Involves 1–50 people and has its owner managing the business on a day-to-day basis.
2
Q
What are the 4 things an entrepreneur needs to do, believe or know to achieve success?
A
- Believe that you can do this: believe in you goal, and build a passion for your business.
- Planning+Action=Success: A plan without action is futule. Have a plan and act on it.
- Help helps: Entrepreneurs learn from other entrepreneurs.
- Do well, do good: To do good for others will help your business because in the long run you will always depend on others.
3
Q
Define self-efficacy
A
A person’s belief in his or her ability to achieve a goal.
4
Q
Define entrepreneur
A
An individual who notices opportunities and decides how to mobilise the resources necessary to produce new and improved goods and services.
5
Q
Go to OneNote and fill in the entrepreneurial process.
A
Check One Note
6
Q
To who and what are small businesses important
A
- Individuals for whom income, growth, and flexibility are rewarding.
- The commnunity
- The economy
7
Q
What do small businesses contribute to the economy and their communities?
A
- New jobs
- innovations
- jobs
- taxes
- products
- services
8
Q
What has small businesses done for job creation?
A
Created 63% of the new jobs created since 1994.
9
Q
What’s one big reason why small businesses are a key employer?
A
They offer work to people with atypical work histories, like people new to the workforce, enever employment histories and people looking for part-time work.
10
Q
Define creative destruction
A
The way that newly created goods, services, or firms can hurt existing goods, services, or firms.
11
Q
What are one of the most famous examples of creative destruction?
A
The personal computer.
12
Q
Why do so many innovations come from small businesses?
A
Small business owners are freer of the judgments and socail constraints of workers elsewhere.
13
Q
Mention 2 facts about patents with regards to small business vs big business.
A
- The US Small Business Administration reports that among firms that hold one or more patents, small businesses generate 16 times the numver of patents per employee thatn do big businesses .
- And the patents produced in those small businesses are twice as likely to be among the top 1% of all petents cited by other.
14
Q
Name 3 inventions from small businesses
A
- Heart Valves
- Assembly lines
- Supercomputers
- Relational database
- Photocopiers
- Outboard enginces
- GORE-TEX
15
Q
Name 3 inventions from student-started small businesses
A
- Video laryngoscope
- JIT PC assembly
- Home computers
- Social networking (Friendster, Facebook)
- Snowboards
- Extreme custom nail polies
16
Q
Define factor-driven economy
A
A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production.
17
Q
Examples of factor-driven enomomies
A
Pakistan, Jamaica, Venzuela.
18
Q
Why is entrepreneurship essential in factor-driven economies?
A
To help build personal wealth and breaking the cucle of low-wage jobs.
19
Q
Define efficiency-driven economy
A
A nation where industrialization is becoming the major force providing jobs, revenues, and taxes, and where minimizing costs while maximizing productivity (i.e., efficiency) is a major goal.
20
Q
Name examples of an efficiency driven economy.
A
Russia, brazil and china.
21
Q
What role does entrepreneurship play in efficiency-driven economies?
A
- A way to help build the middle class,
- and a growing retail and wholesale sectro grows alongside businesses
- serving the needs of a large industrial concerns.
22
Q
Define innovation-driven economy
A
A nation where the major forces for jobs, revenues, and taxes come from high-value-added production based on new ideas and technologies and from professional services based on higher education.
23
Q
Name examples of innovation-driven economies.
A
Germany, the repuclic of Korea, and the United States.
24
Q
What role does entrepreneurship play in Innovation driven economies?
A
These economies are ocused on high-value-added manufacturing but are also marked by a very large service sector providing high-end services, not only to residents but also for export.
25
Rank the economies in which entrepreneurshop averages from highets to lowest.
1. factor-driven economy
2. efficiency-driven economy
3. innovation-driven economy
26
# Identify the type of economy:
A nation where the major forces for jobs, revenues, and taxes come from farming or extractive industries like forestry, mining, or oil production.
factor-driven economy
27
# Identify the type of economy:
A nation where industrialization is becoming the major force providing jobs, revenues, and taxes, and where minimizing costs while maximizing productivity (i.e., efficiency) is a major goal.
efficiency-driven economy
28
# Identify the type of economy:
A nation where the major forces for jobs, revenues, and taxes come from high-value-added production based on new ideas and technologies and from professional services based on higher education.
innovation-driven economy
29
What are the 2 main types of entrepreneurs?
* opportunity-driven entrepreneurship
* necessity-driven entrepreneurship
30
Define opportunity-driven entrepreneurship
Creating a firm to improve one’s income or a product or service.
31
Define necessity-driven entrepreneurship
Creating a firm as an alternative to unemployment.
32
Discuss South Africa's participation in entrepreeurial activiteis since 2016.
* There has been a big slump in the 25-34 age cohort, a decrease of 40% since 2015.
* The age category where entrepreneurship tends to peak, betwen 25 and 34, was the least active in 2016, even lower than 18-24 year olds.
33
What does TEA stand for?
Total Entreprepreneurial Activity
34
What does GEM stand for?
Global entrepreneurship Monitor
35
What does SCI stand for?
Corporate
Social
Independent
36
What is another word for forms of entrepreneurship?
CSI entreprepreneurship.
37
What are the four focuses of entrepreneurship
The key directions the organization intends to pursue. The four focuses are creation (of new entities), customers, efficiency, and innovation (new products, services, or processes).
38
# What does the following entreprenurial focus focus on
Creation
The entrepreneurial focus that looks at the making of new entities.
39
# What does the following entreprenurial focus focus on
Custormer-focus
The entrepreneurial focus that refers to being in-tune with one’s market.
40
# What does the following entreprenurial focus focus on
efficiency
The entrepreneurial focus that refers to doing the most work with the fewest resources.
41
# What does the following entreprenurial focus focus on
innovation
The entreprenurial focus that looks at a new thing or a new way of doing things.
42
What are the main entrepreneurial focuses in corporate entrepreneurship
* Customer
* Efficiency
* Innovation
43
What are the main entrepreneurial focuses in social entrepreneurship?
* Creation
* efficiency
* customer
44
What are the main entrepreneurial focuses in independent entrepreneurship?
* Creation
* Customer
* Efficiency
* Innovation
45
# Which form of entrepreneurship focuses manly on:
* Customer
* Efficiency
* Innovation
Corporate
46
# Which form of entrepreneurship focuses manly on:
* Creation
* efficiency
* customer
Social
47
# Which form of entrepreneurship focuses manly on:
* Creation
* Customer
* Efficiency
* Innovation
Independent
48
Define sustainable entrepreneurship
An approach to operating a firm or a line of business that identifies, creates, and exploits opportunities to make a profit in a way that can minimize the depletion of natural resources, maximize the use of a recycled material, or improve the environment.
49
Define green entrepreneurship
Another term for sustainable entrepreneurship taken from the popular belief that green is the color of a healthy environment, as in forests or fields.
50
Under what form of entreprepreneurship does sustainable entrepreneurship and green entrepreneurship fall?
Social
51
Define mindshare
The degree of attention your target market pays to your idea or organization.
52
What are the 5 P's of entrepreneurial behaviour?
1. Passion
2. Perservereance
3. Promotion-prevention focus
4. Planning style
5. Professionalization
53
Define passion
An intense positive feeling an entrepreneur has toward the business or the idea behind the business.
54
What are some benefits of passion.
* Increasing your commitment to the business
* inspiring key stakeholders, like investors, employees or subcontractors
55
In what 3 ways can passion be displayed
* By looking at teh callenges of the business in a creative way
* By being persistently focusued on the business
* By being absorbed by the tasks and concerns of the business.
56
Define perserverance
The ability to stick with some activity even when it takes a long time and its outcome is not immediately known.
57
Define Promotion-Prevention focus.
a promotion focus intent maximizing gains and pursuing opportunities likely to lead to gains. A prevention focus intent on minimizing losses, with a bias toward inaction or protective action to prevent loss.
58
Will a promotion of prevention focus work better in an established industry/ poor industry?
Prevention
59
Will a promotion of prevention focus work better in an established richer, dynamic uncertain environment or indsutry?
promotion
60
What are the planning styles? Define each
* Comprehensive planners
* Critical point planners
* Opportunistic planners
* Reactive planners
* Habit-based planner
61
Define comprehensive planners
Entrepreneurs who develop long-range plans for all aspects of the business.
62
Define critical-point planners
Entrepreneurs who develop plans focused on the most important aspect of the business first.
63
Define opportunistic planners
Entrepreneurs who start with a goal instead of a plan and look for opportunities to achieve it.
64
Define reactive planners
Entrepreneurs with a passive approach, who wait for cues from the environment to determine what actions to take.
65
Define habit-based planners
Entrepreneurs who do not plan, preferring to let all actions be dictated by their routines.
66
Which planning styles do best?
Comprehensive planners are the best, followed by critical point planner and opportunistic planners.
67
Which planning styles rarely succeed?
Reactive and habit base.
68
Define professionalization
The extent to which a firm meets or exceeds the standard business practices for its industry.
69
Define standard business practice
A business action that has been widely adopted within an industry or occupation.
70
What are the 3 levels of professionilization?
* expert business professionalization
* specialized business professionalization
* minimalized business professionalization
*
71
Define expert business professionalization
A situation that occurs when all the major functions of a firm are conducted according to the standard business practices of its industry.
72
Define specialized business professionalization
A situation that occurs when businesses have founders or owners who are passionate about one or two of the key business functions, such as sales, operations, accounting, finance, or human resources, and pursues those functions in a professional manner.
73
Define minimalized business professionalization
A situation that occurs when the entrepreneur does nearly everything in the simplest way possible, rather than in a professional way.
74
Define business life cycle
The sequence or pattern of developmental stages any business goes through during its life span.
75
Go fill in the business lifecycle diagram in OneNote
See OneNote
76
Discuss the emergence stage in the business life cycle
* The first stage of the small business life cycle, where the entrepreneur moves from thinking about starting the business to actually starting the business.
*
77
Discuss the existence stage in the business life cycle
* The second stage of the business life cycle marked by the business being in operation but not yet stable in terms of markets, operations, or finances.
* The 2nd riskiest period after emergence because many businesss oweners lack the key ingo or experience they need in marketing, production and management.
* The problem of mastering these 3 areas form what are called the liabilities of newness.
78
Define liability of newness
The set of risks faced by firms early in their life cycles that comes from a lack of knowledge by the owners about the business they are in and by customers about the new business.
79
Discuss the success stage in the business life cycle
* The third stage of the business life cycle marked by the firm being established in its market, operation, and finances.
* Firms develop information, skills and routines to grow profit.
* Profits arent always monetary. It can be time off work, a slower pace at work, or hiring additional personnel to take on more of the owners' tasks to make owners' life easier.
* These profits are called slack resources or flexibility.
80
Define slack resources
Profits that are available to be used to satisfy the preferences of the owner in how the business is run.
81
Discuss the resource maturity stage in the business life cycle
* The resource maturity stage is the most typical fourth stage of the small business.
* It is characterized by relatively stable or slowly rising sales and profits over several years. In a firm that has a takeoff stage following the success stage, the resource maturity stage occurs after takeoff.
82
Discuss the takeoff stage in the business life cycle
* This stage occurs after the success stage for a small percentage of businesses.
* It is characterized by rapid growth (5–10 percent a month or more). When this growth levels off, the firm enters the resource maturity stage.
OBS 114
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