Entrepreneurship Basics

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Questions and Answers

What is the primary trait of an entrepreneur that enables them to develop, organize, and manage a business venture?

Innovative thinking

Achievement motivation

Risk-taking ability

Calculated risk-taking (correct)

Which of the following is NOT a characteristic of an entrepreneur?

Risk-averse (correct)

Visionary

Optimistic

Technically competent

What drives an entrepreneur to spot and exploit opportunities?

Desire for social responsibility

Need for achievement (correct)

Fear of failure

Confidence in their abilities

Which of the following best describes an entrepreneur's working profile?

Self-confident and driven Signup and view all the answers

What is the main purpose of a business plan for an entrepreneur?

To create a roadmap for business success Signup and view all the answers

Which of the following is a key contributor to an entrepreneur's entrepreneurial mindset?

Optimism and self-confidence Signup and view all the answers

What is the primary motivation for entrepreneurs to take risks and venture into new businesses?

Achievement motivation Signup and view all the answers

Which of the following best describes the role of an entrepreneur in small business management?

Make strategic decisions and drive the business forward Signup and view all the answers

What is the primary characteristic of an entrepreneur in terms of risk-taking?

They are able to recognize and take advantage of opportunities. Signup and view all the answers

Which of the following types of entrepreneurs is concerned with trading activities?

Trading entrepreneur Signup and view all the answers

What is the key difference between an entrepreneur and a small business owner?

Entrepreneurs have a plan for growth. Signup and view all the answers

Which of the following is NOT a characteristic of an entrepreneur's mindset?

Risk-averse nature Signup and view all the answers

What is the primary motivation for a corporate entrepreneur?

To develop and manage a corporate body Signup and view all the answers

What is the key characteristic of a small business?

It is independently owned and managed. Signup and view all the answers

Which of the following is a characteristic of an entrepreneur's leadership behavior?

Gets along with others and is responsive to situations. Signup and view all the answers

What is the primary goal of an entrepreneur in terms of business planning?

To create a business plan for growth Signup and view all the answers

What is the primary reward of an entrepreneur?

Profit earned from the business Signup and view all the answers

What is the key to achieving maximum utilization of resources in an entrepreneurial venture?

Time management Signup and view all the answers

Which of the following is a reason for the failure of an entrepreneurial venture?

Poor management Signup and view all the answers

What is the primary function of an entrepreneur?

All of the above Signup and view all the answers

What is the recommended approach to calculating income and expenditure in an entrepreneurial venture?

Be conservative in calculating income and lavish in calculating expenditure Signup and view all the answers

What is the primary purpose of conducting a SWOT analysis in an entrepreneurial venture?

To identify opportunities and threats Signup and view all the answers

What is a key characteristic of a successful entrepreneur?

Hard work and dedication Signup and view all the answers

What is the primary benefit of taking moderate risks in an entrepreneurial venture?

Minimizing potential losses Signup and view all the answers

Study Notes

Entrepreneurship vs. Small Business

Entrepreneurship involves accepting risks and opportunities to create, operate, and grow a new business.
Small business owners do not have plans for growth.

Types of Entrepreneurs

According to the type of business:
- Business entrepreneurs conceive and translate ideas into reality.
- Trading entrepreneurs focus on trading activities.
- Industrial entrepreneurs set up industrial units.
- Corporate entrepreneurs plan, develop, and manage corporate bodies.
- Agricultural entrepreneurs engage in agricultural activities.
According to motivation:
- Rewards: Entrepreneurs earn profits, while managers receive a monthly salary.

Characteristics of an Entrepreneur

Calculated risk-taker
Innovator
Organiser
Creative
Achievement motivated
Technically competent
Self-confident
Socially responsible
Optimistic
Equipped with capability to drive
Blessed with mental ability
Human relations ability
Communication ability
Decision-making
Business planning
Venture capitalist
Visionary
Ability to spot and exploit opportunities
Courage to face adversities
Leadership

Tips to Become a Successful Entrepreneur

Acquire sufficient and all-round knowledge about an enterprise.
Be conservative in calculating income and lavish in calculating expenditure.
Don't expect quick and easy returns.
Be prepared for delegation of work.
Take moderate risks.
Plan systematically and march ahead step by step.
Manage time effectively.
Collect maximum information about competitors.
Don't avoid or run away from problems.
Take help from experts and experienced persons when needed.

Reasons for Success and Failure

Reasons for failure:
- Poor management
- Neglect
- Weak control systems
- Insufficient capital
Reasons for success:
- Hard work, drive, and dedication
- Market demand
- Strong management
- Luck

Definition and Nature of Entrepreneurship

The word 'entrepreneur' is derived from the French word 'entreprendre', meaning 'to undertake'.
The 1987 Philippine Constitution recognizes entrepreneurship as an engine of economic growth.
Entrepreneurship is the capacity and willingness to develop, organize, and manage a business venture with its risks to make a profit.

Working Profile of an Entrepreneur

Self-confidence:
- Confidence
- Independence
- Optimism
- Individuality
Drive:
- Need for achievement
- Profit-oriented
- Energy
- Risk-taking ability
- Likes challenges.

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Description

Learn about the definition, nature, and characteristics of entrepreneurship. Understand the history of entrepreneurship and how to identify and create opportunities.