10 Questions
What is the primary function of an entrepreneur in terms of driving innovation and value in the marketplace?
Testing markets and inventing new markets
Which characteristic of an entrepreneur is essential for staying open to new ideas and experiences?
Open-mindedness
What is the primary reason an entrepreneur takes on risk?
To pay for the factors of production in advance
What is the role of an entrepreneur in bringing together resources?
Organizing function
What is the primary goal of an entrepreneur's innovative approach?
To solve real-world problems
Which characteristic of an entrepreneur is essential for understanding customer needs?
Empathy
What is the primary function of an entrepreneur in terms of managing resources?
Managerial function
Why is innovation important for entrepreneurs?
It helps them gain a competitive advantage
What is the primary characteristic of an entrepreneur that enables them to see opportunities in the community?
Creativity
What is the primary role of an entrepreneur in terms of managing risk?
To take calculated risks to achieve entrepreneurial goals
Study Notes
Entrepreneurial Functions
- Preparation of a business plan or project report is a crucial step in entrepreneurship, serving as an operating document.
- The entrepreneur must determine the financial requirement, classified into short-term and long-term needs.
Commercial Functions
- Production/Manufacturing involves decisions on factory site selection, design, layout, product types, research, and development.
- Marketing is the flow of goods and services from producer to consumer, with the customer at its core.
- Accounting involves recording, classifying, summarizing, and interpreting transactions to achieve business objectives.
Managerial Functions
- Planning involves predetermining a course of action to accomplish set objectives, considering what, how, when, where, and by whom tasks are to be done.
- Organizing involves bringing together resources (men, material, machine, money, etc.) to execute plans.
- Staffing involves human resource planning, recruitment, selection, training, development, and appraisal.
- Directing involves guiding, teaching, and stimulating employees to work efficiently and accomplish objectives.
- Controlling involves comparing actual performance with target performance and taking corrective measures.
Promotional Functions
- Identification and selection of a business idea involves generating and evaluating ideas based on knowledge, experience, and information gathered from others.
Characteristics of an Entrepreneur
- Creativity
- Professionalism
- Risk-taking
- Passion
- Planning
- Knowledge
- Social Skills
- Empathy
- Customer-centricity
- Open-mindedness towards learning, people, and failure
Functions of an Entrepreneur
- Innovation: driving innovation and value in the marketplace
- Risk-taking: responsible for paying factors of production in advance, with potential for profit or loss
- Organizing: bringing together resources to execute plans
This quiz covers the preparation of a business plan or project report, requirements for finance, and commercial functions such as production and manufacturing.
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