Entrepreneurship Concepts Quiz

Business Sheet

• Entrepreneur: A person who identifies a business opportunity, manages the process, and takes risks related to starting a business. Successful entrepreneurs often share similar characteristics.
• Entrepreneurship: The process of identifying a business opportunity, testing it, and securing resources to launch a venture.
• Venture: A new business enterprise, often involving risk.
• Small Business: An independently owned business, usually managed by the owner.
• Virtual/Online Business: A business operating solely on the internet. Advantages include easy shopping, attracting a large customer base, and accessibility for anyone with an internet connection.
• Rewards of Entrepreneurship: Being your own boss, doing what you enjoy, and the opportunity to be creative.
• Challenges of Entrepreneurship: Securing funding, complete responsibility (unlimited liability), long hours, uncertain income, risk of investment loss, and feeling alone/insecure.
• Questions to Consider Before Starting a Business: (important to understand; don't just memorize):
  • What will you produce?
  • Who are your main competitors?
  • Why is your product/service needed?
  • What is the cost of producing product/service?
  • How many employees are needed?
  • What physical facilities are needed?

Business Plan

• Business Plan: A comprehensive document outlining a new venture, covering its operational aspects.
• Business Plan Structure (16 Parts): The document includes an executive summary, management team, products/services, vision/mission, industry analysis, market analysis (competitor analysis), marketing strategy, operations plan, organizational structure, financial projections, growth plans, and contingency plans.
• Demographics: Population data including age, gender, location, and income. Factors crucial to understanding the target market.
• Market: A group of consumers with shared wants and needs.
• Marketing: The process of creating, promoting, and presenting products/services to fulfill customer needs. Key functions include distribution, finance, marketing information management, and pricing.

Marketing Mix

• Marketing Mix (4Ps): Strategies focused on Product, Place, Price, and Promotion, which are essential for a successful business. Importantly, one is also People (5th P).
• Channel of Distribution: A pathway taking a product from producer to customer. Direct distribution connects producers directly to consumers. Indirect distribution involves intermediaries.
• Break-Even Point: The point where total revenue equals total costs and expenses during development and offering a product.
• Marketing Research: Gathering and analyzing data about the market to help create a better product based on needs and trends.
• Market Segmentation: Dividing a market into distinct groups based on shared needs and characteristics.
• Market Segmentation: Dividing a market based on common characteristics, allowing targeted marketing strategies.
• Advertising: Promoting or publicizing goods/services to increase interest and sales.
• Benefits of Advertising: Generating brand loyalty, building a positive company image, attracting new customers, increasing customer traffic, keeping consumers informed, and generating revenue.

Other Important Aspects

• Media Planning: The process of selecting channels for advertising and defining their timing and placement.

• Medium: Methods used for advertising communication including billboards, magazines, radio, television, direct mail, and the internet. Methods also including Transit (advertisements in public places).

• Advertising Agencies: Businesses specializing in developing ad campaigns for clients.

• Ad Campaigns: Coordinated series of ads with a single message and theme.

• Media Measurements: Factors like audience size, impression counts, frequency of exposure, and cost-per-thousand (CPM) are used to evaluate advertising effectiveness and adjust campaign strategies.

• Advertising Rates: Factors influencing newspaper/magazine ad costs including ad size, readership/reach, frequency, and timing.

• Technology: Advancements in technology, such as e-workforce, digital technology, and e-commerce, are crucial to a business's success. 

• Brick-and-Mortar: Businesses using physical stores.

• Click-and-Mortar: Businesses using both physical locations and online platforms.

• Retailer: Individuals or businesses selling goods directly to consumers.