Entrepreneurship II

Questions and Answers

What are the main benefits of joining a business incubator?

Access to specialized equipment and resources

Reduced initial investment costs

Guidance and support from experienced professionals

All of the above (correct)

Which of the following is NOT a common problem faced by enterprises?

Technological advancements (correct)

Competition from rivals

Employee motivation

Economic downturns

What is a key benefit of acquiring a franchise?

Lower startup costs compared to starting from scratch (correct)

Complete freedom to customize the business model

Guaranteed success due to the established brand

Exclusive rights to a specific geographical area

Which of these is NOT a type of business incubator?

Social enterprise Signup and view all the answers

Which of the following is a potential disadvantage of purchasing an existing enterprise?

Potential for outdated equipment and technology Signup and view all the answers

Which of these is NOT an advantage of starting an entrepreneurship?

Guaranteed job security and steady income Signup and view all the answers

What is one of the benefits of electronic business?

Large market access Signup and view all the answers

Which of the following is a criterion for generating a new entrepreneurial idea?

Market factors Signup and view all the answers

Which technique is used to develop the ability to generate creative ideas?

Mind mapping Signup and view all the answers

What is a primary benefit of having a strategic plan?

Clear future vision Signup and view all the answers

What should be included in the contents of a strategic plan?

Summary Signup and view all the answers

Which of the following is NOT a source of new ideas?

Following trends blindly Signup and view all the answers

Study Notes

Benefits of an Enterprise for the Entrepreneur

Independence allows entrepreneurs to make their own decisions and set their own schedules.
Financial gains from successful enterprises can significantly enhance personal wealth.
Community service is achieved through contributions to local economies and job creation.
Job security can increase as entrepreneurs expand their enterprises and create stable employment.
Family employment opportunities are crafted, fostering a supportive work environment.
Entrepreneurs tackle and solve challenges, enhancing problem-solving skills and innovation.

Common Problems of an Enterprise

Sales fluctuation can impact revenues and financial stability.
Competition from similar businesses requires ongoing strategy adaptations.
Increased responsibilities come with managing various business aspects and ensuring productivity.
Financial losses can occur due to poor management, market changes, or economic downturns.
Relations with employees are critical for maintaining morale and productivity.
Navigating laws and regulations is essential to avoid legal penalties.
Risk of failure looms over enterprises, necessitating careful planning and risk management.

Important Methods to Start Up an Entrepreneurship

Joining a business incubator provides resources, support, and a structured environment for start-ups during an incubation period.
Acquiring a franchise leverages established trademarks, proven business models, and support systems.
Purchasing an existing enterprise saves time and minimizes risks but may come with challenges like location disadvantages and reputational issues.
Engaging in international business opens up global markets and diversification of offerings.
E-business enables lower operating costs and access to a large customer base online.

Joining a Business Incubator

Business incubators offer equipped production and administration units for a specific rental period.
Types include general non-technology, technology-based, international, and internet incubators.

Acquiring a Franchise

Benefits include the right to use a recognized trademark, access to proven success frameworks, extensive training, technical assistance, and marketing support.

Purchase of an Existing Enterprise

Advantages include time and risk minimization and acquiring a good reputation.
Disadvantages involve potential location issues, aging equipment, and risks of overpaying or inheriting bad reputations.

E-Business Benefits

Features a broad market reach, reduced costs, fewer operational requirements, and efficient time use.

Generating the Entrepreneurial Idea

Criteria for new ideas include market factors, competitive advantages, economic viability, enthusiasm, and potential for business model development.

Sources of Ideas

Ideas can stem from personal experiences, listening to community needs, and recognizing unmet demands.

Mechanism for Crystallizing Ideas

Techniques to enhance creative thinking:
- Mind Mapping organizes thoughts visually.
- Brainstorming fosters open idea generation.
- Six Thinking Hats technique encourages viewing situations from different perspectives.
- Canvas business model offers a structured way to outline business concepts.

Strategic Plan

A strategic plan serves as an official road map detailing the entrepreneur's vision and business approach.

Benefits of a Strategic Plan

Provides a clear future vision and guides towards consumer-driven ideas.
Encourages specificity in planning and accountability in management.

Contents of a Strategic Plan

Must include a summary, general description, marketing strategy, research details, manufacturing plans, and management structures.
Should assess risk degrees and types, include planning and forecasting elements, define the enterprise mission with details like name and slogan, and append necessary documents.