What is the role of an entrepreneur?
- Innovators
- Organizers of production factors
- Owners making key decisions
- Risk takers
Entrepreneurs take risks and bring together various ingredients for business success with profit.
What is the opportunity cost of an activity?
Benefits lost from the next best alternative
Success and failure have an opportunity cost.
List the factors that contribute to business ideas for entrepreneurs.
- Business experience
- Personal experience
- Skills
- Lifestyle choices
These factors influence the development of business ideas.
What are the functional business activities that require attention as a business expands?
- Financial management
- Administration
- Marketing
- Purchasing
- Managing people
- Production
More time is spent on these activities as the business develops.
Define intrapreneurship.
Employees using entrepreneurial skills without risking their own money
Intrapreneurs find and develop initiatives for financial benefits for their employer.
What are the advantages of employing intrapreneurial staff?
- Drives innovation
- Satisfies self-actualization needs
- Potential for awards for unique products
- Opportunity for creativity without cost of failure
Intrapreneurs contribute to uncovering new commercial opportunities.
List the barriers to entrepreneurship.
- Lack of finance
- Lack of entrepreneurial capacity
- Becoming an employer
- Legal barriers
- Lack of ideas
- Fear of failure
- Aversion to risk
- Corrupt and unsupportive environment
These barriers can hinder entrepreneurial efforts.
What does anticipating risk involve for entrepreneurs?
Understanding the nature of risk from the start
Entrepreneurs can take measures to reduce the amount of risk they take.
How do businesses deal with uncertainty?
Making preparations to deal with consequences of uncertain events
Businesses cannot prevent uncertain events but can prepare for them.
What analyses do businesses use to reduce uncertainty?
- PESTLE
- SWOT
These analyses help businesses anticipate and prepare for uncertainties.
