Entrepreneurship: Start-up Requirements and Resources

Vocabulary-style flashcards covering the resources, requirements, and risks associated with South African business start-ups as detailed in Entrepreneurship: A South African Perspective Chapter 6.

Personal resources

The commitment, visions, passions, and dreams of entrepreneurs that allow them to believe in their product or service and make personal sacrifices.

Financial resources

Resources that take the form of, or can be readily converted into, cash, used to acquire other resources for the business.

Equity financing

Finance obtained directly from the entrepreneur.

Debt financing

Money loaned to the business by outsiders.

Human resources

Skilled, competent, and affordable help that makes the difference between a great idea and a successful business.

Physical resources

Includes fixed assets (buildings/equipment), raw materials for products, and general supplies used in operations.

Infrastructure

A physical resource factor involving transport, water supply, electricity supply, and the existing business environment.

Technological and information resources

Data regarding the external environment and internal workings of the business, used to improve agility, coordination, and productivity.

Organisational resources

Includes the business name, patents, brands, values, human capital, reporting structure, and management functions.

Risk management

According to Petty, Palich, Hoy & Longenecker (2012), all efforts to preserve the assets and earning power of a business.

Retention

A risk strategy where the entrepreneur bears or accepts the risk, normally when the potential loss is small or insignificant.

Reduction

A risk strategy applied if the possibility of a loss cannot be eliminated completely, but its impact can be lowered.

Avoidance

A risk strategy involving not exploring an opportunity or not investing in the business in the first instance.

Transfer

Moving risk or a part of it to another party, for example, through underwriting and insurance.

Macroeconomic environment risk

Risks arising from business cycles, technology, and politics.

Market environment risk

Risks associated with consumer preferences, price changes, and competition.

Promotion of Access to Information Act 2 of 2000

One of the specific South African legislative acts businesses must comply with regarding information access.

Protection of Personal Information Act 4 of 2013

A South African legislative act that requires business compliance for protecting personal data.

Record keeping

The practice of maintaining accurate, meaningful, and timely information to allow the business to plan, organize, and control expenditures.

ISO 9000 and ISO 14000

Examples of certifications for quality systems that help a business ensure quality and expand globally.

Feet count

A specific location factor to consider when selecting a shopping mall for a business establishment.