Entrepreneurship Basics

Study Notes

Definition: The process of designing, launching, and running a new business or venture.
Characteristics of an entrepreneur:
- Risk-taker
- Innovative
- Proactive
- Flexible
- Passionate
Types of entrepreneurs:
- Small business owners
- Scalable startups
- Social entrepreneurs
- Intrapreneurs (innovative employees within an existing organization)
Key skills for entrepreneurs:
- Leadership
- Communication
- Strategic thinking
- Adaptability
- Financial management

Definition: The process of planning, organizing, and controlling financial resources to achieve business objectives.
Key concepts:
- Financial planning: budgeting, forecasting, and financial goal-setting
- Financial analysis: ratio analysis, financial statements, and cash flow management
- Investment decisions: capital budgeting, cost-benefit analysis, and risk management
- Funding options: debt, equity, and hybrid financing
Financial statements:
- Balance sheet: snapshot of company's financial position
- Income statement: summary of revenues and expenses
- Cash flow statement: summary of cash inflows and outflows

Definition: The process of planning, executing, and controlling marketing efforts to achieve business objectives.
Marketing mix:
- Product: features, benefits, and life cycle
- Price: pricing strategies, discounts, and promotions
- Place: distribution channels, logistics, and supply chain management
- Promotion: advertising, sales promotion, and public relations
Target marketing:
- Segmentation: dividing market into distinct groups
- Targeting: selecting specific segments to target
- Positioning: creating unique brand identity
Digital marketing:
- Online marketing channels (e.g. social media, email, search engine optimization)
- Digital marketing metrics (e.g. website analytics, conversion rates)

Definition: The process of recruiting, training, and developing employees to achieve business objectives.
HR functions:
- Recruitment and selection
- Training and development
- Performance management
- Compensation and benefits
- Employee relations and conflict resolution
Key HR concepts:
- Job analysis: identifying job requirements and responsibilities
- Job design: creating job descriptions and specifications
- Employee engagement: motivating and retaining employees
- Diversity and inclusion: promoting equal opportunities and cultural diversity

Definition: The principles and standards that guide business behavior and decision-making.
Key concepts:
- Corporate social responsibility: business's impact on society and environment
- Ethical decision-making: applying moral principles to business decisions
- Stakeholder theory: considering the interests of all stakeholders (e.g. employees, customers, shareholders)
- Ethical leadership: promoting ethical behavior and culture within an organization
Ethical issues in business:
- Conflict of interest
- Bribery and corruption
- Discrimination and harassment
- Environmental sustainability and social responsibility

Entrepreneurship is the process of designing, launching, and running a new business or venture.
Characteristics of entrepreneurs include being risk-takers, innovative, proactive, flexible, and passionate.
Types of entrepreneurs include small business owners, scalable startups, social entrepreneurs, and intrapreneurs.
Key skills for entrepreneurs include leadership, communication, strategic thinking, adaptability, and financial management.

Financial management is the process of planning, organizing, and controlling financial resources to achieve business objectives.
Financial planning involves budgeting, forecasting, and financial goal-setting.
Financial analysis involves ratio analysis, financial statements, and cash flow management.
Investment decisions involve capital budgeting, cost-benefit analysis, and risk management.
Funding options include debt, equity, and hybrid financing.
Financial statements include balance sheets, income statements, and cash flow statements.

Marketing strategies involve planning, executing, and controlling marketing efforts to achieve business objectives.
The marketing mix includes product, price, place, and promotion.
Product involves features, benefits, and life cycle.
Price involves pricing strategies, discounts, and promotions.
Place involves distribution channels, logistics, and supply chain management.
Promotion involves advertising, sales promotion, and public relations.
Target marketing involves segmentation, targeting, and positioning.
Digital marketing involves online marketing channels and digital marketing metrics.

Human resource management is the process of recruiting, training, and developing employees to achieve business objectives.
HR functions include recruitment and selection, training and development, performance management, compensation and benefits, and employee relations and conflict resolution.
Key HR concepts include job analysis, job design, employee engagement, and diversity and inclusion.

Business ethics involve the principles and standards that guide business behavior and decision-making.
Key concepts include corporate social responsibility, ethical decision-making, stakeholder theory, and ethical leadership.
Ethical issues in business include conflict of interest, bribery and corruption, discrimination and harassment, and environmental sustainability and social responsibility.