ENTREPRENEURSHIP What is entrepreneurship? • the activity of setting up a business or businesses, taking on financial risks in the hope of a profit Who is an entrepreneur? • a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so • comes from the word inter prehendere, a Latin term means to take control COMMON BUSINESS TERMS • Product - a tangible item offered for sale COMMON BUSINESS TERMS • Service- business activity that involves doing things for customers COMMON BUSINESS TERMS • Market- a place where exchange of goods and services takes place COMMON BUSINESS TERMS • Manager- the one who manages the business • Employee- an individual who was hired by an employer to do a specific job • Consumer- a person who purchases goods and services for personal use • Revenue refers to the income generated from a business’s operations and activities • Expense refers to money spent on utilities, salaries, and raw materials, and other items that a company incurs operating the business • Profit also known as net income or the bottom line, is the difference between what a business earns and spends • Assets-resources that businesses control, in which the owner expects assets to generate future cash flow. Examples include inventory, equipment, and land • Liabilities are debts, usually sums of money, that a business owes to another entity. Examples include expenses payable to suppliers, accounts payable, and business loans IDENTIFYING BUSINESS OPPORTUNITIES • ONE OF THE PLANNING TOOLS UTILIZED BY ENTREPRENEURS IN IDENTIFYING BUSINESS OPPORTUNITIES IS THE S.W.O.T. ANALYSIS S.W.O.T • A tool that entrepreneurs can use to help them decide what is the most suitable business idea they could introduce in the market is SWOT Analysis. It will also help them to focus on the possible problem that arises in the particular product/service and the potential advantages of each ideas • Internal FactorsPRODUCT/OWNER/BUSINESS/ EMPLOYEES • - Strengths- are the specific positive aspects which will give your proposed business an advantage over similar business ventures and the competitors. • - Weaknesses- are the things that your business will not do as well as other businesses. STRENGTHS • I am a highly motivated person who can wake up every day with the intrinsic desire to work on my goals. • I am highly goal-oriented and can break down my goals into manageable short-term tasks to create a clear path to success. STRENGTHS • I have integrity. I can be trusted to do the right thing even when it doesn’t advantage me personally. • I am a team player. I can communicate, collaborate and compromise on group tasks to get the job done. STRENGTHS • I am a strong leader. For me, leadership skills are about supporting a team of people and getting the best out of everyone while focusing on a common goal. STRENGTHS • I am generally a confident person with the self-belief that I’ll be able to achieve the goals I’ve set for myself. • I am highly conscientious. I usually complete my tasks thoroughly and won’t stop until it’s done. STRENGTHS • I have strong communication skills. I know how to communicate with people in a way that resolves disputes and often ends with everyone getting a bit of what they want. • I have good listening skills. I’ll actually listen to someone and respond to them by incorporating their unique concerns in my response. STRENGTHS • I’m very approachable. People tend to find me likable and nonthreatening which helps me in social situations. WEAKNESSES • I have poor research skills which will make it really hard for me to figure out what I need in order to achieve my goals. • I struggle with academic topics and prefer practical tasks, so this goal will be hard to meet for me. WEAKNESSES • I am really shy and this goal will require me to step out of my comfort zone a lot. • I am an introvert and I’ll need to talk to people to meet this goal. This will exhaust me. • I can lack energy some days which sets me back on my timeline for meeting my goals WEAKNESSES • I lack confidence in myself so I’m not sure if I’ll succeed. • I get easily distracted by nearby people, my phone, or other things that provide more instant gratification than the tasks I need to get done. WEAKNESSES • I am bad at talking on the phone which fills me with anxiety. I’ll need to overcome this to achieve my goals. • I can get into grumpy moods. I’ll need to be careful about this in order to complete these tasks professionally. • EXTERNAL FACTORSINVESTORS/LOCATION/COSTUMERS/ MATERIALS/SOURCE OF MATERIALS • Opportunities • Opportunities in SWOT are the result of your existing strengths and weaknesses, along with any external initiatives that will put you in a stronger competitive position • Threats in SWOT refers to areas that have the potential to cause problems. This is different from weaknesses as threats are external and generally out of your control • EXTERNAL FACTORSINVESTORS/LOCATION/COSTUMERS /MATERIALS/SOURCE OF MATERIALS • Opportunities • Opportunities in SWOT are the result of your existing strengths and weaknesses, along with any external initiatives that will put you in a stronger competitive position OPPORTUNITIES • There is the possibility of economic growth on the horizon which could help improve our prospects. • We will be gaining new employees who may be able to bring fresh ideas into the company. OPPORTUNITIES •Our country’s population growth will help increase the number of prospective buyers in the coming years. OPPORTUNITIES •There has been a spike in interest in products related to ours within our industry recently, which we could capitalize on. OPPORTUNITIES •We have attracted media attention recently and may do so in the future which can help us to meet our quarterly goals. • Threats in SWOT refers to areas that have the potential to cause problems. This is different from weaknesses as threats are external and generally out of your control THREATHS • An economic recession could set our business back and prevent us from achieving our goals. • We cannot control employees quitting which can cause a brain drain from our business and we will lose a lot of institutional knowledge. THREATHS • We worry that clients might lose interest in our services and stop hiring us. • We are aware that declining media attention could take the wind out of our sails and decrease profit or growth. THREATHS • Lack of investors in the future might decrease our ability to grow as fast as we would like.
