Entrepreneurship and Business Planning Lecture

15 question-and-answer flashcards covering entrepreneurship concepts, roles, characteristics, business start-up steps, and business plan components.

What is an entrepreneur?

An individual who conceives an economic idea, takes the risk of implementing it, and aims to benefit the economy by creating goods or services.

Which five activities summarize the role of an entrepreneur in decision making?

Conceptualizing, planning, accessing funds, organizing, and evaluating business performance.

Name four characteristics commonly associated with successful entrepreneurs.

Creative, innovative, goal-oriented, and willing to take risks (others include flexible, persistent, persevering).

How do entrepreneurs contribute to nation building?

They create jobs, provide needed goods and services, improve living standards, engage in environmental and community activities, and stimulate economic growth.

State three common reasons someone might start a business.

To make money/increase income, to provide employment or be one’s own boss, and to put personal ideas into the world.

What is the first step in establishing a business and what does it involve?

Conceptualisation – formulating the idea of what product or service to produce.

During the establishment process, what is the purpose of the research stage?

To probe the market (via questionnaires, interviews, etc.) and decide whether sufficient demand exists to make operations viable.

Identify the three main categories of resources that must be identified when starting a business.

Financial resources, human resources, and material resources.

Define a business plan.

A complete description of a business and its intentions for the next one to three years.

Give two reasons why a business should prepare a business plan.

To attract investors, determine whether the business is feasible, and guide its operations.

What information is typically included in the executive summary section of a business plan?

A brief overview of key business features, including the owner’s educational background and work experience.

Which section of a business plan outlines day-to-day running details and objectives of the enterprise?

The Operational Plan.

What does the Business Opportunity section of a business plan focus on?

The specific products or services offered and what makes them stand out in the market.

List four key items highlighted in a marketing plan.

Target market, product description, business strategies, and goals & objectives.

At what point in creating a business plan is the Executive Summary usually written, and why?

It is normally written last so the writer can accurately summarize all key elements already developed.