Entrepreneurial Mindset Overview

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Questions and Answers

Which of the following is NOT considered an internal factor influencing entrepreneurial intentions?

  • Risk Appetite
  • Government Policies (correct)
  • Demographics
  • Psychological Traits

The process of carrying out the business plan is known as ______.

Implementation

Micro entrepreneurs typically have a high level of wealth.

False (B)

What are two examples of demographic factors that can influence entrepreneurial intentions?

<p>Gender and age are examples of demographic factors.</p> Signup and view all the answers

Match the entrepreneurial traits with their descriptions:

<p>Self-confidence = Belief in one's abilities and the ability to succeed. Risk Appetite = Willingness to take chances and face uncertainties. Prior Knowledge = Pre-existing knowledge and experience relevant to the business.</p> Signup and view all the answers

Which of the following are key aspects of the "Implementation" stage of entrepreneurship?

<p>Hiring employees (B), Securing funding (C)</p> Signup and view all the answers

Entrepreneurs in developed countries typically come from a background of unemployment or underemployment.

<p>False (B)</p> Signup and view all the answers

What is the significance of "Reaping the Returns" in the context of entrepreneurship?

<p>Reaping the returns refers to strategies for expanding the business and addressing future challenges. It signifies the long-term success and sustainability of the venture.</p> Signup and view all the answers

Which of the following is NOT a step in the market research process?

<p>Analyze the data and draw conclusions (C)</p> Signup and view all the answers

Interviews are typically conducted in person between the researcher and a respondent.

<p>True (A)</p> Signup and view all the answers

What is a primary source of data in market research?

<p>Primary sources of data are new information gathered directly from sources like interviews, surveys, or focus groups.</p> Signup and view all the answers

The distribution channel of a product or service is also known as the ______.

<p>place</p> Signup and view all the answers

Match the following data collection techniques with their descriptions:

<p>Surveys (Questionnaires) = Most common way to gather primary research using questionnaires or interview schedules. Interviews = Typically done in person between the researcher and a respondent, involving questions. Focus Group Discussion = Moderated group interviews and brainstorming sessions involving 8 to 10 participants.</p> Signup and view all the answers

Which of the following is NOT a primary usage of focus group discussions in market research?

<p>Analyzing financial statements (C)</p> Signup and view all the answers

Telephone interviews have a higher response rate than face-to-face interviews.

<p>False (B)</p> Signup and view all the answers

What is one example of a service that could be classified under Professional Services?

<p>A service like accounting is a professional service.</p> Signup and view all the answers

Which of the following is NOT a packaging decision concept?

<p>Promotional Strategy (C)</p> Signup and view all the answers

The second step of the positioning process is to confirm your understanding of market dynamics.

<p>False (B)</p> Signup and view all the answers

What does a competitive advantage allow a company to do?

<p>Perform better than the competition.</p> Signup and view all the answers

In the positioning process, the first step is to confirm your understanding of _____ dynamics.

<p>market</p> Signup and view all the answers

Match the positioning steps with their descriptions:

<p>Step 1 = Identify your competitive advantages. Step 2 = Confirm your understanding of market dynamics. Step 3 = Choose your competitive advantages that define your niche.</p> Signup and view all the answers

What is a characteristic of Filipino entrepreneurs regarding gender?

<p>Females are engaged more than males (B)</p> Signup and view all the answers

Critical thinking is a type of internal risk.

<p>False (B)</p> Signup and view all the answers

What does risk management involve?

<p>Identifying, assessing, and responding to risks</p> Signup and view all the answers

What does USP stand for?

<p>Unique Selling Proposition (A)</p> Signup and view all the answers

The ___ is a systematic and rational way of providing an answer to a question.

<p>entrepreneurial decision-making</p> Signup and view all the answers

The main purpose of geographic segmentation is to analyze customer preferences based solely on age.

<p>False (B)</p> Signup and view all the answers

Match the types of risk with their descriptions:

<p>Internal Risk = Threats from within the business External Risk = Threats from the outside environment Liquidity Risk = Risk of not having enough cash flow Financial Risk = Risk related to financial losses</p> Signup and view all the answers

What is a vital aspect to ensure when creating a product name?

<p>It should be truthful and establish credibility.</p> Signup and view all the answers

The market can be segmented based on __________ characteristics like age and gender.

<p>demographic</p> Signup and view all the answers

Which factor influences the entrepreneurial environment?

<p>Government regulations (C)</p> Signup and view all the answers

Creative thinking follows a systematic and analytical process.

<p>False (B)</p> Signup and view all the answers

Match the following segmentation types with their definitions:

<p>Geographic Segmentation = Dividing the market based on location Demographic Segmentation = Dividing the market based on consumer characteristics Service Requirement = An intangible thing or product Output Requirement = Things that can be seen</p> Signup and view all the answers

What is one of the tips for creating an effective selling proposition?

<p>Identify and rank the uniqueness (A)</p> Signup and view all the answers

What is one significant internal risk faced by businesses?

<p>Liquidity risk</p> Signup and view all the answers

Target markets aim to identify consumers who have different needs and characteristics.

<p>False (B)</p> Signup and view all the answers

What should be considered when conducting geographic segmentation?

<p>Climate and culture</p> Signup and view all the answers

Which factor is NOT a characteristic of rivalry among existing firms?

<p>Level of customer engagement (C)</p> Signup and view all the answers

Substitute products have no impact on competition within an industry.

<p>False (B)</p> Signup and view all the answers

What is the main purpose of a Value Proposition?

<p>To summarize why a consumer should buy a product or use a service.</p> Signup and view all the answers

People's interests and ________ are rich sources of entrepreneurial ideas.

<p>preferences</p> Signup and view all the answers

Which factor does NOT represent a characteristic of substitute products?

<p>High product differentiation (D)</p> Signup and view all the answers

Match the elements of creating a Value Proposition with their descriptions:

<p>Target Customer = The specific group of consumers aimed at Needs/Opportunities = Consumer demands that can be met</p> Signup and view all the answers

The expertise gained from past experiences can lead to new business opportunities.

<p>True (A)</p> Signup and view all the answers

Name one characteristic that contributes to the rivalry among existing firms.

<p>Diversity of rivals</p> Signup and view all the answers

Flashcards

Environmental Support

Factors like government and institutions that aid entrepreneurs.

Creative Thinking

The ability to generate new ideas without a systematic approach.

Strategic Thinking

Assessing situations logically to plan for the future.

Risk

Uncertain situations that may lead to business loss or failure.

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Internal Risk

Dangers that come from managing resources within a business.

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External Risk

Threats that originate from outside the business environment.

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Entrepreneur Characteristics

Traits like gender, age, and education that shape entrepreneurs.

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Risk Management

The process of identifying, assessing, and responding to risks.

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Unique Selling Proposition (USP)

A feature that makes a product special compared to competitors.

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Target Market

A specific group of consumers with similar needs.

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Market Segmentation

Dividing the market into distinct groups for targeted marketing.

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Geographic Segmentation

Dividing the market based on geographic location.

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Demographic Segmentation

Dividing the market based on characteristics like age, gender, and education.

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Service Requirement

An intangible need that customers expect from a product or service.

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Output Requirement

Tangible needs that can be seen or measured by customers.

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Effective Selling Proposition

A clear and concise statement expressing why a product is unique.

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Promotion

The use of attractive colors, logos, and symbols to influence customers.

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Packaging Concept

Defines what packages should achieve for the product regarding size and material.

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Market Dynamics

Understanding the competitive forces and trends in your market.

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Competitive Advantage

A unique trait or quality that allows a brand to outperform competitors.

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Niche Definition

A specific segment of the market that a brand targets based on competitive advantages.

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Micro Entrepreneurs

Individuals who start small-scale business enterprises with limited resources.

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Implementation

The process of executing a business plan.

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Reaping the Returns

Strategies for benefiting from business operations and investments.

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Risk Appetite

Willingness to take on uncertainty in business.

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Demographics

Statistical data relating to the population and groups within it.

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Personal Traits

Individual characteristics that contribute to entrepreneurial success.

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Psychological Traits

Mental characteristics influencing an entrepreneur's abilities.

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Prior Knowledge

Experience and information acquired before starting a business.

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Rivalry Among Existing Firms

Competition among businesses in the same market.

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Substitute Products

Products that serve the same purpose as others in the market.

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Switching Cost

The cost incurred when changing from one product to another.

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Product Differentiation

The unique features that distinguish a product from its competitors.

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Value Proposition

A statement that summarizes why a consumer should choose a product.

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Supplier

A provider of goods or services needed for business operations.

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Diversity of Rivals

The range of competitors with varying characteristics in the market.

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Industry Growth Rate

The pace at which an industry expands over time.

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Potential Market Size

The total volume or number of potential customers for a product or service.

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Pricing Strategy

The process of determining what a company will charge for its products or services.

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Distribution Channel

The path through which products or services reach customers.

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Promotion Strategy

The methods used to inform potential customers about a product or service.

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Survey

A common method of primary research using questionnaires to gather data.

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Interviews

A primary research technique where a researcher asks questions directly to a respondent.

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Focus Group Discussion

A qualitative research method involving guided discussions with a small group.

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Direct Marketing

A strategy that communicates directly with potential customers to generate a response.

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Study Notes

Entrepreneurial Mindset

  • The term "entrepreneur" comes from the French word "entreprendre," meaning "to undertake."
  • Entrepreneurs initiate and establish businesses.
  • Joseph Schumpeter's theory of economic development highlights the role of entrepreneurs in economic transformation.

Mega and Micro Entrepreneurs

  • Both originate from perceived opportunities.
  • Peter Drucker emphasized the discipline in starting and running a business.
  • Mega entrepreneurs generate significant value and profit quickly, often taking substantial risks.
  • Micro entrepreneurs often initiate ventures but have limited revenue.

Entrepreneurial Process

  • Discovery: Recognizing a business opportunity or idea.
  • Development of a Business Concept: Detailing a business plan.
  • Organizing Resources: Identifying and securing necessary resources.
  • Implementation: Executing the business plan.

Entrepreneurial Traits and Value Creation

  • Education plays a vital role in seizing entrepreneurial opportunities.
  • Entrepreneurs often come from the formal sector or unemployed/underemployed populations.
  • Entrepreneurial wealth is crucial.
  • Risk appetite is linked to business stability.
  • Internal factors like demographics, personal traits, psychological traits, skills, knowledge, and social ties are critical.

External Factors and Environment

  • Environmental support includes government policies, financial institutions, and training.
  • Regulatory elements, patents, and protection of property rights affect the environment.
  • Age, gender, educational attainment of entrepreneurs differ geographically.
  • Entrepreneurs take risks in uncertain situations.
  • Internal risks come from resource management.
  • External risks are factors outside the control of the business, such as economic trends, competition, and changing customer preferences.

Entrepreneurial Decision-Making

  • Critical, creative, and strategic thinking are essential.
  • SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) provides a framework for decision-making.

Recognizing a Potential Market

  • Entrepreneurial ideas lead to the identification of entrepreneurial individuals.
  • The creation of ideas identifies entrepreneurial potential.
  • Understanding market dynamics is essential for success.
  • External environmental factors such as climate, natural resources, wildlife, political and economic forces, sociocultural forces, and technological forces affect a business.
  • Understanding competitor behavior, customers, creditors, employees, and suppliers is important.

Customer Requirements

  • Customers have service and output requirements.
  • Market size analysis aids in estimating potential consumers and determining market share.

Market Research

  • Defining research objectives, gathering secondary and primary data, and analyzing and interpreting results are all parts of market research.
  • Various data collection methods, such as surveys, interviews, and focus groups, are used.

7Ps of Marketing and Branding

  • Product: Goods/services satisfying consumer wants.
  • Place: Distribution channels.
  • Price: Value exchanged.
  • Promotion: Communicating the product's value.
  • People: Staff and customers.
  • Processes: Delivering product/service.
  • Physical Evidence: Supporting the product/services.

Pricing Strategies

  • Value-based pricing: Price determined by customer perceived value.
  • Competition-based pricing: Prices set by competitive product pricing.
  • Product line pricing: Prices for a family of products.
  • Skimming pricing: High initial pricing and then gradually lowering.
  • Cost-based pricing: Add a percentage to total costs for price.

Promotional Strategies

  • Advertising: Reaching a large audience.
  • Public relations: Positive image building.
  • Personal selling: Directly engaging with customers.
  • Sales promotion: Incentives for increased sales, such as free trials or contests.

Packaging

  • Packaging addresses customer needs and protection from deterioration or damage.
  • The packaging's design is important to provide convenience for consumers.

Positioning

  • Understanding market dynamics to identify advantages.
  • Competitive advantages like price, features, and benefits are vital for niche recognition.

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