Questions and Answers
What is a benefit of joining a business incubator?
What is a potential disadvantage of acquiring a franchise?
What is a potential advantage of purchasing an existing enterprise?
Which of the following is NOT a benefit of entrepreneurship for the entrepreneur?
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Which of the following is a common problem faced by enterprises?
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Which of the following is NOT a type of business incubator?
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What is one of the benefits of electronic business?
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Which factor is NOT listed as a criterion for making a new entrepreneurial idea?
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Which technique is used for developing creative ideas?
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What element is included in the contents of a strategic plan?
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Which of the following is a benefit of having a strategic plan?
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What is NOT a source of ideas for entrepreneurship?
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Study Notes
Benefits of an Enterprise for the Entrepreneur
- Independence in decision-making and operations.
- Potential for significant financial gains through profits.
- Opportunity to contribute to community service initiatives.
- Job security for the entrepreneur and employees.
- Possibility of family employment within the business.
- Ability to solve challenges and address market needs.
Common Problems of an Enterprise
- Sales fluctuation can lead to unpredictable revenue streams.
- Competition from other businesses may affect market share.
- Increased responsibilities can lead to management challenges.
- Financial losses can jeopardize sustainability and growth.
- Relations with employees must be managed to maintain morale and productivity.
- Compliance with laws and regulations is essential to avoid penalties.
- Risk of failure is inherent in entrepreneurship and needs to be mitigated.
Important Methods to Start Up Entrepreneurship
- Joining a business incubator provides essential resources and support.
- Acquiring a franchise offers access to established trademarks and training.
- Purchasing an existing enterprise can save time and minimize risk.
- Exploring international business opportunities broadens market reach.
- E-business capitalizes on online platforms for reduced costs and flexibility.
Joining a Business Incubator
- Provides equipped production and administration units for a specified rental period.
- Types of incubators include general non-technology, technology-based, international business, and internet incubators.
Acquiring a Franchise
- Right to use a well-known trademark enhances credibility.
- Beneficial due to the established success of the trademark.
- Extensive training and technical support are typically included.
- Marketing assistance is often provided to facilitate brand growth.
Purchasing an Existing Enterprise
- Advantages include time, cost, and effort savings.
- Disadvantages encompass potential inconvenience of location and aging products.
- Good reputations of existing businesses can be a draw, while bad reputations can be a hurdle.
E-Business Benefits
- Access to a large market without geographical constraints.
- Lower operational costs compared to traditional businesses.
- Fewer requirements for starting up, allowing for easier entry.
- Reduced time commitments leading to increased efficiency.
Generating the Entrepreneurial Idea
- Market factors must be considered to identify viable opportunities.
- Establishing a competitive advantage is crucial for success.
- Economic viability ensures that ideas can be monetized effectively.
- Enthusiasm and persistence are key for overcoming challenges.
- The idea must have the potential to transform into a viable business model.
Sources of Ideas
- Ideas can stem from existing experiences and observations.
- Listening to feedback and suggestions from others can spark innovation.
- Identifying unmet needs presents opportunities for new products or services.
Techniques to Develop the Ability to Generate Creative Ideas
- Mind mapping encourages visual brainstorming of ideas and concepts.
- Brainstorming sessions can generate a wealth of new ideas in a short time.
- The Six Thinking Hats technique offers diverse perspectives on problems.
- The Canvas Business Model provides a structured way to develop business ideas.
Strategic Plan
- A strategic plan is an official document outlining the enterprise's future direction and operations.
- It serves as a roadmap for achieving business objectives and clarifying intentions.
Benefits of a Plan
- Provides a clear vision of future goals and outcomes.
- Generates ideas driven by consumer needs and preferences.
- Ensures specific focus areas are addressed in the business strategy.
- Holds management accountable for achieving results.
Contents of a Plan
- Includes a summary and general description of the business.
- Marketing strategies and research methodologies must be outlined.
- Manufacturing and management plans should detail operational procedures.
- Risk assessments covering degrees and types of risks are essential.
- Planning and forecasting provide insights into future trends.
- The mission statement should include the enterprise name, slogan, and written mission.
- Appendices may contain supporting documents and additional information.
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Description
This quiz covers the advantages and disadvantages of running an enterprise, including independence, financial gains, and job security, as well as potential problems like sales fluctuations and competition.
