Chapter 2 – Entrepreneurship (Grade 10 Business Studies)

28 question-and-answer flashcards summarising key concepts from Chapter 2 on Entrepreneurship.

What two French words form the root of “entrepreneur,” and what do they mean?

“Entre” meaning “to enter” and “prendre” meaning “to take.”

Which economist first coined the term “entrepreneur” in the early 18th century?

Richard Cantillon, a French economist.

According to Jean-Baptiste Say, what does an entrepreneur do with under-used resources?

Reorganises them productively to exploit opportunities and earn profit.

What is the primary aim of any entrepreneur?

To generate profit as a reward for the risks taken.

Define an entrepreneur in one sentence.

A person who spots a market opportunity, gathers resources, and builds a business to satisfy consumer needs and earn profit.

Give three common push factors that drive people toward entrepreneurship.

Unemployment, lack of job security, disagreement with a current employer (or no formal training/qualification to get a job).

Give three common pull factors that attract people to entrepreneurship.

Independence, recognition, and self-actualisation (personal wealth/flexibility).

Why is unemployment a particularly powerful push factor in South Africa?

High unemployment forces people to create their own jobs because population growth outpaces job creation.

What was South Africa’s estimated unemployment rate in 2020?

Roughly between 34 % and 43 %.

What age range defines South Africa’s Economically Active Population (EAP)?

Ages 15 to 65.

Name the seven key entrepreneurial characteristics highlighted in this chapter.

Opportunity seeking, creativity/innovation, risk tolerance, determination & perseverance, self-reliance, flexibility, and motivation.

What does opportunity seeking involve for an entrepreneur?

Constantly searching for better ways to meet customer needs, even if it means starting a new venture or expanding current offerings.

How do creativity and innovation benefit an entrepreneur?

They enable development or improvement of products/services to create a competitive advantage and satisfy customer needs.

Why must entrepreneurs have a high tolerance for risk?

Because starting and running a business involves personal and financial uncertainty in a dynamic environment.

What is a recommended way to minimise entrepreneurial risk?

Conduct thorough research so that risks taken are calculated and informed.

Why are determination and perseverance essential in a new venture?

Launching a business demands sustained effort, sacrifices, and resilience to overcome numerous challenges.

In an entrepreneurial context, what does self-reliance mean?

Being a self-starter who makes decisions, uses resources effectively, and does not depend on others to act.

Why is flexibility critical for entrepreneurs?

They must adapt practices swiftly to meet unforeseen challenges while still pursuing clear goals.

According to Maslow’s hierarchy, what motivational level do entrepreneurs generally strive for?

Self-actualisation.

List the three features that distinguish an entrepreneurial venture from a business merely trying to survive.

Innovation, growth potential, and sound objectives.

Within an entrepreneurial venture, what is meant by innovation?

Continual search for new/better ways to satisfy customer needs, often leveraging technology.

What does growth potential mean for an entrepreneurial business?

A persistent aim to expand customer base or enter larger/geographic markets, not just maintain current sales.

What are sound objectives in the context of an entrepreneurial venture?

Clearly defined goals backed by strategies—e.g., entering new markets or increasing market share.

What is a techno-entrepreneur?

An entrepreneur who develops new technology or leverages technology to grow a business.

What is a tourism entrepreneur?

Someone who identifies gaps in the tourism sector and offers goods or services (e.g., hotels, tours) that attract tourists.

Define a social entrepreneur.

An entrepreneur who starts ventures aimed at solving social problems, often through NGOs.

Define an enviro-entrepreneur.

An entrepreneur who creates ventures addressing environmental problems, such as selling solar panels, bio-fuels, or organic products.