MGMT602 - Small and Medium Enterprise

Discovery Perspective

Discovery Perspective

Entrepreneurs perceive opportunities from market inefficiencies and competitive imperfections.

Creation Perspective

Opportunities are created through entrepreneurial actions, reactions, and innovations.

Risk-Return Analysis

A technique to evaluate the potential returns and associated risks of an entrepreneurial opportunity.

Economic Perspective of Entrepreneurs

Entrepreneurs as risk bearers, arbitrageurs, innovators, and coordinators of scarce resources.

Behaviourist Approach

Focuses on the need for achievement, internal locus of control, and risk-taking propensity.

Financial Risks

Involves investing personal money and potential borrowing.

Career Risks

Potential impact on future employment opportunities.

Social Risks

The effect of entrepreneurship on family and social life.

Health Risks

Physical and mental demands of entrepreneurship.

Opportunity Cost

The cost of passing up one investment in favor of another.

Liquidity Premium

Extra return for investments that are not easily converted to cash.

Risk Premium

Additional return for taking on higher risk.

Uncertainty Premium

Extra return for dealing with uncertain outcomes.

Social Networks

Personal and dynamic networks crucial for entrepreneurial success.

Ethnic Entrepreneurship

Entrepreneurship arising from push or pull factors within ethnic communities.

Entrepreneurship

The process of identifying and converting new opportunities into marketable products or services.

Creative Destruction

The process of simultaneous emergence and disappearance of technologies, products, and firms due to innovation.

Key Elements of Entrepreneurship

Individual, market opportunity, adequate resources, business organization, and favorable environment.

Entrepreneurial Alertness

The ability to notice and act on potential opportunities.

Opportunity Cost

The cost of passing up one investment in favor of another.

Global Entrepreneurship Monitor (GEM)

Measures the level of start-up activity and survival rates in an economy.

Ethnic Entrepreneurship

Entrepreneurship arising from push or pull factors within ethnic communities.

Liberalization and Globalization

Trends promoting the adoption of Western ideas and rules-based systems, fostering an entrepreneurial society.