Entrepreneurship Basics

Origin of the Word "Entrepreneur"

• The word 'entrepreneur' originates from the French word "entreprendre," meaning "to undertake."

Entrepreneurship Definition

• Entrepreneurship is the process of designing, launching, and running a new business, which typically involves taking financial risks and accepting responsibility for its success or failure.

Salient Feature of Entrepreneurship

• A salient feature of entrepreneurship is the pursuit of innovation, where entrepreneurs constantly seek new ideas and ways to improve existing products, services, or processes.

Managing One's Own Enterprise

• Managing one's own enterprise in entrepreneurship entails being responsible for all aspects of the business, including planning, organizing, staffing, directing, and controlling.

Societal Improvement through Entrepreneurship

• Entrepreneurship contributes to societal improvement by creating jobs, stimulating economic growth, and introducing innovative products and services that enhance lives.

Non-Salient Feature of Entrepreneurship

• The statement that is NOT a salient feature of entrepreneurship is the focus on short-term profits. Entrepreneurs typically consider both short-term and long-term goals, with a focus on sustainable growth.

Process of Entrepreneurship

• The process of entrepreneurship involves identifying opportunities, developing a business plan, securing resources, launching the business, and managing its growth and development.

Satisfying the Target Market

• In entrepreneurship, understanding the needs and preferences of the target market is crucial for satisfying them and achieving business success.

Jenny's Business Operation

• Jenny's business operation exemplifies the spirit of entrepreneurship, showcasing her initiative, creativity, and dedication to building a successful venture.

Jenny's Hair Salon Enterprise Size

• Jenny's Hair Salon is an example of a small enterprise based on its size and scope of operation.

Primary Source of Business Funds

• The primary source of business funds used by Jenny is likely her personal savings and investments.

Jenny's Business Vision

• A key aspect of Jenny's vision for her business is likely providing high-quality services and creating a welcoming and comfortable environment for customers.

Financial Commitment for Equipment

• Jenny made a significant financial commitment, likely through personal savings or loans, to acquire the necessary equipment for her hair salon.

Compliance with Licensing

• Jenny's compliance with licensing requirements highlights the importance of adhering to legal and regulatory frameworks in entrepreneurship.

Community Contribution

• Jenny's operation is likely to contribute to her local community by creating employment opportunities and providing valuable services to residents.

Jenny's Business Funding

• The correct statement about Jenny's business funding is that she likely self-funded the initial investment, leveraging personal savings and possibly small loans.

Small Business Goal

• A primary goal for opening an ordinary small business is typically to achieve financial stability and profitability while providing a service or products that meet customer demands.

Entrepreneur's Perception of Risk

• Entrepreneurs generally perceive business risk as an inherent aspect of their ventures, embracing the challenge and seeking to mitigate or manage it effectively.

Reaction to Environmental Changes

• Entrepreneurs typically embrace changes in their environment, seeing them as opportunities to adapt, innovate, and explore new possibilities.

Entrepreneurship Characteristic

• A characteristic of entrepreneurship is the willingness to take calculated risks, seeking out promising opportunities despite potential setbacks.

Relationship Between Entrepreneurship and Economic Health

• A strong relationship exists between entrepreneurship and economic health, where entrepreneurial activity drives innovation, job creation, and overall economic growth.

Misconception about Entrepreneurship

• A common misconception about the entrepreneur's approach to risk is that they are reckless or impulsive. Entrepreneurs typically make calculated decisions, carefully assessing risks and rewards before taking action.

Difference Between Entrepreneurship and Ordinary Small Business Activities

• While entrepreneurship involves the creation and launching of new ventures, ordinary small business activities often focus on managing existing operations and meeting established customer needs.

Unhealthy Attitude towards Opportunities

• An unhealthy attitude towards entrepreneurial opportunities in the face of change is complacency or resignation. Entrepreneurs thrive on change, seeing it as a catalyst for further growth and development.

This quiz explores the fundamentals of entrepreneurship using Jenny's Hair Salon as a case study. Topics include business permits, costs, and employee management. Assess your knowledge of essential entrepreneurial practices.