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Questions and Answers
What is a primary goal of e-government initiatives in facilitating entrepreneurship?
What is a primary goal of e-government initiatives in facilitating entrepreneurship?
Which of the following is NOT a government strategy to foster entrepreneurship?
Which of the following is NOT a government strategy to foster entrepreneurship?
What challenge to entrepreneurship is associated with high input costs?
What challenge to entrepreneurship is associated with high input costs?
Which factor contributes to the challenges faced by entrepreneurs in Jamaica?
Which factor contributes to the challenges faced by entrepreneurs in Jamaica?
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What effect does the small population size have on entrepreneurship in Jamaica?
What effect does the small population size have on entrepreneurship in Jamaica?
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Which of the following is a business facilitation strategy implemented by the government?
Which of the following is a business facilitation strategy implemented by the government?
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How do utility costs pose a challenge to entrepreneurship?
How do utility costs pose a challenge to entrepreneurship?
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Which of the following is a political factor that can enhance business growth?
Which of the following is a political factor that can enhance business growth?
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Which factor refers to the removal of barriers to trade and its effects on local and international markets?
Which factor refers to the removal of barriers to trade and its effects on local and international markets?
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What is a primary objective of government policies aimed at promoting entrepreneurship?
What is a primary objective of government policies aimed at promoting entrepreneurship?
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What has been a significant change in the role of government in promoting entrepreneurship?
What has been a significant change in the role of government in promoting entrepreneurship?
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Which of the following is a challenge to entrepreneurial growth linked to geography?
Which of the following is a challenge to entrepreneurial growth linked to geography?
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What does the HEART Trust/NTA focus on to support entrepreneurship in Jamaica?
What does the HEART Trust/NTA focus on to support entrepreneurship in Jamaica?
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The establishment of which body signifies a shift towards a facilitator role of the government?
The establishment of which body signifies a shift towards a facilitator role of the government?
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What is a common misconception about regional trading blocks?
What is a common misconception about regional trading blocks?
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How do e-government initiatives primarily support entrepreneurial growth?
How do e-government initiatives primarily support entrepreneurial growth?
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How does a stable economy influence entrepreneurship?
How does a stable economy influence entrepreneurship?
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What is one way high unemployment can affect entrepreneurship?
What is one way high unemployment can affect entrepreneurship?
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What role does technology play in entrepreneurship?
What role does technology play in entrepreneurship?
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How does globalization affect trade?
How does globalization affect trade?
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What does the term 'cultural penetration' refer to in the context of entrepreneurship?
What does the term 'cultural penetration' refer to in the context of entrepreneurship?
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What is a potential impact of high-interest rates on entrepreneurship?
What is a potential impact of high-interest rates on entrepreneurship?
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Which of the following best describes how mobile technology influences entrepreneurship?
Which of the following best describes how mobile technology influences entrepreneurship?
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How does the ongoing process of globalization impact cultural integration?
How does the ongoing process of globalization impact cultural integration?
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Study Notes
Introduction to Entrepreneurship
- Entrepreneurship is defined as the pursuit of opportunities beyond controlled resources.
- Entrepreneurship is a process of creating new ventures or businesses.
- Ways of starting a new business can involve creating a new business idea, new business with an existing idea, buying an existing business, buying a franchise or entering a family business.
- Entrepreneurship can be considered a powerful economic force for building value from seemingly nothing and creating new jobs and invigorating markets.
Objectives of the Course
- Explain the concept of entrepreneurship
- Outline the rewards and drawbacks of entrepreneurship
- Identify personal characteristics of successful entrepreneurs
- Identify supporting enabling factors (SEFs)
- Identify factors driving the growth of entrepreneurship
- Explain how to avoid the mistakes of entrepreneurship
What is Entrepreneurship?
- Entrepreneurship can manifest as creating a unique product or service, or as a new approach for an existing one.
- A style of management is critical for entrepreneurial success.
- A key factor is recognizing change and challenges as business opportunities.
- Defining characteristics include risk taking, initiative, and resource reorganization.
Definition of Entrepreneurship
- Creating value by assembling resources for a specific opportunity.
- A dynamic process for generating incremental wealth.
Key Principles of Entrepreneurship
- Creativity (thinking new things)
- Innovation (doing new things)
- Calculated risk taking (introducing a product to the market)
- Self-belief (confidence in one's ideas)
- Persistence and determination (using failures productively)
- Value creation (understanding the goal of entrepreneurship)
- Reaping/rewards (gaining benefits from the business)
Who is an Entrepreneur?
- An entrepreneur brings resources (labor, materials, other assets) together to combine and create more value than exist initially.
- Someone who recognizes an opportunity for something new and creates an organization to pursue it.
Reasons for Becoming an Entrepreneur
- Increase earnings
- Introduce a new creative idea
- Provide a needed service or product
- Enjoy success in a venture
- Be your own boss
- Independence, enjoyment, challenge, creativity, personal satisfaction, autonomy, freedom
Rewards of Entrepreneurship
- Control over one's destiny
- Reaching one's fullest potential
- Financial benefit
- Contributing to society and being recognized for efforts
- Freedom from supervision and bureaucratic rules
- Freedom from routine, boring, and unchallenging jobs
- Freedom from standardized pay
Drawbacks of Entrepreneurship
- Uncertainty of income
- Complete responsibility
- Risk of losing invested capital
- Long hours and hard work
- Emotional loneliness
- Disruptions to personal life
- Strong possibility of failure
- Lower quality of life until the business is established
How to Reduce the Drawbacks of Entrepreneurship
- Mental preparation
- Planning (thorough business plan)
- Research
- Training
- Start small
- Start and operate business on the side
- Start early
Key Elements in an Entrepreneur's Background
- Supportive childhood family environment
- Parent who is self-employed
- Education
- Work history (dissatisfaction with a previous job and technical knowledge)
- Age (22 to 45) when starting
Entrepreneur vs Inventor
- Inventors create something new for the first time.
- Entrepreneurs are driven by the new venture, not by the invention.
- Historians differentiate between the two groups in their approach.
Personal Entrepreneurial Characteristics (PECs)
- Committed to success
- High work standards
- Self-motivated
- Motivating others
- Enjoy sharing ideas
- Hardworking
- Enthusiastic and optimistic
- Accept responsibility
- Good leaders
- Analyze situations easily
- Make and implement decisions quickly
- Creative thinkers
- Identify positive trends
- Good planners and organizers
- Trustworthy, integrity
- Disciplined
- Determined
- Committed to their projects
- Self-confidence
- Enjoy challenges
- Energetic
- Information seekers
- Persuasive and good networkers
Supporting & Enabling Factors (SEFs)
- Factors outside of the entrepreneur's control that play a crucial role in success.
- Skills and factors include:
- Prior business experience
- Finance knowledge
- International experience
- Technical support
- Outside support
- Recession/crisis experience
- Owning assets
- Family support
- Market growth
Entrepreneurship - The Fear of Failure
- Understanding failure as a learning experience
- Seeing failure not as a sign of defeat, but as a step towards success.
Factors Influencing the Growth of Entrepreneurship
- Ideas
- Technology
- People
- Capital
- Social Factors
- Natural entrepreneurial spirit
- Motivated by necessity
- Desire to be your own boss
- Desire for self-actualization
- Wanting to be a "don"
- Cultural Factors
- Ethnic groupings(Chinese, Jews, Indians)
- Cultural penetration
- Cable TV
- Economic Factors
- Stable economy
- High inflation
- High unemployment
- Interest rates
- Exchange rates
- Technology
- Information & Communications age
- Technology replacing employees
- Technology increasing business efficiency
- Creativity, innovation & start-ups
- Opportunities for high-tech businesses
- Globalization
- Ongoing process of integration
- Economic, technological, socio-cultural, political and biological components
- Transnational dissemination of ideas, language, & culture
- World becoming smaller
- Paradigm shifts impacting expectations & possibilities
- Technology to do things better & new things
- Mobile technology
- Internet marketing
- Impact of globalization on markets (trade barriers)
- Labor / Jobs mobility
- Regionalization
- Regional trading blocks (CARICOM)
- Free trade areas
- Markets opening up (North America, Central America, South America, Caribbean)
- Political Factors
- Capitalism
- Private sector growth emphasis
- Government promoting entrepreneurship
- Facilitator and referee role of government
- Business facilitation strategies (e.g. E-Gov & GovNet)
- Technical assistance
- Tax holidays for employment creation
- National infrastructure improvements
- Bilateral agreements
- Access to loans and grants
- Government policies (reducing ownership, privatization)
Mistakes Entrepreneurs Make
- Unclear goals
- Poor Management
- Lack of leadership ability
- Lack of knowledge
- Lack of experience
- Poor financial control
- Weak marketing efforts
- Failure to strategically plan
- Overconfidence
- Uncontrolled Growth
- Poor location
- Improper Inventory control
- Incorrect pricing
- Inability to make Entrepreneurial transition
- Losses of focus & direction
How to Avoid Pitfalls
- Deep knowledge of the business
- Clear goals
- Developing a business plan
- People management
- Financial management
- Understanding financial statements
Tutorial Activities (Suggestions for Student Activity)
- Evaluate your own PEC strengths and weaknesses
- Analyze the success of a local entrepreneur
- Examine the attributes of successful local entrepreneurs
- Determine whether you agree with the classification of Einstein as inventive genius and Ford as entrepreneurial genius.
Summary of the Entrepreneurial Process
- Detailed coverage of the theoretical concepts;
- Analysis of the economic factors involved; and
- Identification of potential issues.
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Description
Explore the fundamentals of entrepreneurship, including its definition, processes, and significance in the economy. This quiz covers the various ways to start a business, the characteristics of successful entrepreneurs, and the challenges they may face. Test your knowledge on the rewards, drawbacks, and key factors influencing entrepreneurship.
