1what is an employee
an individual that works for a business, they earn a salary, they are employed by the manager, the employer
2what is an employer
the manager of the business, they hire employees to work for the business
3what is an entrepreneur
individual that has an idea for a business and they go ahead with that idea to form their business
4characteristics of an entrepreneur
innovative, seizing opportunities, perserverence, hard working, people skills, good managing
5key success factors of an entrepreneur
1. skills, expertise, aptitude 2. personal qualities- skills, manual work, can be learned 3. management skills 4. external factors- technological changes, social and cultural forces, economic conditions
68 important functional skills of a business
1. general management skills 2. production/operational function 3. financial production 4. purchasing function 5. human resources function 6. marketing function 7. administrative function 8. external factors function GPFPHMAE
76 external factors that affect a entrepreneurship
1. economic conditions 2. technological changes 3. social and cultural forces 4. political and legislative variables 5. physical variables 6. international forces ETSPPI
8what is an enterprise
described as an independent institution. established by an entrepreneur. motivation is to make profit by selling products/services that satisfy customers needs. place where all the business functions take place eg. marketing, admin
9what is an establishment
place where inputs such as raw materials are processed to produce a product or provide a service
10what is a branch of industry
refers to all the businesses that produce the same product or provide the same service
11what is the production branch
refers to all the businesses that use more or less use the same production process
12micro environment
factors and variables that occur internally in the business. they have an important influence on the establishment and on the growth and continued existence of the business. functions of the business
13market environment
sum total of fatcors which exist externally. cant be controlled, sometimes can be influenced. consumers, competition
14macro environment
variables that occur externally of the business that either have a positive or negative influence of the growth and continued existence of the business. economic environment, social environment
15what does feasible mean
when you analyse the market to see if your business idea is practical, suitable and profitable
16what does viable mean
if your business idea is doable
17right brain dominant
divergent thinking, uses feelings, images, present and future, risk taking
18left brain dominant
convergent thinking, uses logic, detail oriented, practical, safe
193 team creativity
pin cards, brain storming, trigger sessions
206 ways to generate business ideas
from everyday activities- shopping, at work, media. from skills, expertise, aptitude- talents, interests, knowledge
212 methods of evaluating business ideas
1. feasibility test- examine th epotential of the idea to be converted into a business. 2. viability test- in depth investigation of the profitability of the idea ot be converted into a business
22bow tie technique
for individuals- the manufacture of products for individuals. provision of service to individuals. the sale of other peoples products to individuals. for organizations- the manufacture of products to organisations. the provision of service to organisations. the sale of other peoples products/services to organisations. the bow tie can be used to identify the essence of the idea. the possible o=combination of ideas.