Questions and Answers
What does the term innovation refer to?
Introducing new ideas, devices, or methods.
What is entrepreneurship?
The process of creating a business venture to generate profit.
What is an entrepreneur?
An individual who has the natural capacity and phenomenal devotion to set up and deal with a business.
What is the economy?
Signup and view all the answers
What does society refer to?
Signup and view all the answers
What are environmental factors in entrepreneurship?
Signup and view all the answers
From which language is the word 'entrepreneur' derived?
Signup and view all the answers
The __________ environment includes resources and the ecosystem that defines the habitat of a man, animals, plants, and minerals.
Signup and view all the answers
Which environment impacts the political soundness of a nation?
Signup and view all the answers
What is PESTEL analysis?
Signup and view all the answers
Match the following industry forces with their descriptions:
Signup and view all the answers
Study Notes
Relevance of Entrepreneurship in Society
- Entrepreneurship is the process of creating a business venture to generate profit.
- Innovation involves introducing new ideas, devices, or methods to improve business practices.
- Entrepreneurs possess the capacity and dedication to establish and manage a business.
- The economy encompasses the creation, distribution, exchange, and consumption of goods and services within a community.
Concepts of Entrepreneurship
- "Entrepreneur" is derived from the French verb "entreprendre," meaning "to undertake."
- Entrepreneurship involves taking risks to establish enterprises.
Environmental Factors and Sources of Opportunities
Physical Environment
- Pertains to the natural elements relevant to business operations.
- Climate considerations are crucial for location selection and business setup.
- Access to physical resources (raw materials) directly impacts production costs and sustainability.
- Wildlife conservation and corporate social responsibility are important for modern entrepreneurs.
Social Environment
- Sociocultural factors include demographics, cultural values, family structures, social status, customs, and education.
- Political factors encompass political parties, regulations, taxation, government stability, and worker benefits, affecting business environment stability.
- Economic conditions are influenced by supply and demand, impacting currency exchange rates and overall financial health.
- Ecological factors involve the ecosystem and natural resources critical to business operations.
- Technological advancements drive efficiency and marketing through the use of the internet, social media, and e-commerce.
- The legal environment consists of laws and regulations that govern business practices.
Industry Environment
- An industry is a collective group of companies that share similar primary business activities.
- Industries are grouped into broader categories known as sectors.
Six Industry Forces
- Government actions and policies can significantly influence business operations, exemplified by initiatives like the "Build, Build, Build Program."
- Suppliers provide essential inputs such as raw materials, machinery, and expertise necessary for production.
- Customers are key to business success, as profits rely on transactions with them.
- Competitors are categorized into direct and indirect competitors:
- Direct competitors produce similar goods/services (e.g., Samsung vs. iPhone).
- Indirect competitors offer alternatives (e.g., Coca-Cola vs. other soft drinks).
Environmental Scanning and Analysis
- Environmental scanning is the systematic collection and analysis of external factors impacting the business.
- PESTEL analysis (Political, Economic, Sociocultural, Technological, Environmental, Legal) is a tool for assessing these influences in business strategy and decision-making.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz explores the relevance of entrepreneurship in society, including the role of innovation and environmental factors in business success. It discusses how entrepreneurs create economic value and the risks associated with establishing new enterprises.
