entrep 2 full

Entrepreneurial Process

A series of steps involving finding, evaluating, and developing business opportunities.

Four Phases of Entrepreneurial Process

1. Identify and evaluate opportunity, 2) Develop a business plan, 3) Determine resources required, 4) Manage or implement the enterprise.

Identify and Evaluate Opportunity

The first phase of the entrepreneurial process where potential business opportunities are recognized.

Develop a Business Plan

Phase 2 of the entrepreneurial process requiring careful analysis to secure a business opportunity.

Resources Required

The third phase of the entrepreneurial process focused on determining and acquiring the necessary resources.

Manage or Implement the Enterprise

The final phase of the entrepreneurial process involving the execution of the business plan.

Potential Market

A specific need or problem recognized by an entrepreneur as a business opportunity.

Business Opportunity

A specific need or problem where action can be taken to generate profit.

Finding Approach

An opportunity identification method that involves scanning the environment for business ideas.

Building Approach

An opportunity identification method focused on creating business ideas internally within the entrepreneur.

Macro Environmental Factors

External factors that affect the overall economy and state of business.

Micro Environmental Factors

Factors that directly impact specific industries.

Opportunity Screening

The process of assessing and selecting the best business opportunities.

Viability

The potential for a business opportunity to start, grow, and survive.

Economic Value

The ability of a commercial enterprise to generate profits.

Opportunity Attractiveness Matrix

A framework for evaluating the appeal of various business opportunities.

Market Potential

The likelihood of attracting enough customers to sustain a business.

Operating Potential

The availability of processes, methods, and technology for a product or service.

Financial Potential

The expected profitability against operational costs in a business venture.

Threat from Competitors

The risk posed by competitors that could impact business success.

Unforeseen Risks

Unexpected events that could harm a business, such as weather or health crises.

Home-Based Businesses

Businesses operated from home, gaining popularity due to various economic and technological developments.

Business Plan

A strategic document outlining how to implement a business venture successfully.

Importance of Business Plan

Determines viability, provides guidance, and assists in securing financing.

Unique Selling Proposition (USP)

A statement that highlights the unique attributes of a product or service.

Value Proposition (VP)

A definitive statement identifying the benefits a product or service offers to customers.

Target Market

The specific group of customers that a business intends to reach.

Market Research

The process of gathering data to understand customer needs and market conditions.

Secondary Sources

Existing data that can be accessed for market research purposes.

Primary Data

New information gathered directly from target customers or the market.

Interviews

A method of data gathering through direct person-to-person communication.

Focused Group Discussion (FGD)

A research method involving a small group discussion to gather insights on a topic.

Surveys

A method involving questionnaires distributed to a larger group to gather feedback.

Segmentation and Targeting

The process of dividing the market into smaller groups to identify and target specific customers.

Geographic Segmentation

Dividing the market based on location such as region or city.

Demographic Segmentation

Segmenting the market based on characteristics such as age, gender, or income.

Psychographic Segmentation

Dividing the market based on personality traits and lifestyle.

Buying Situation Segmentation

Grouping consumers based on specific buying conditions and behaviors.

Market Size

The estimated number of potential buyers for a product or service.

Purpose of Market Research

To determine potential buyers, market size, pricing, distribution channels, and promotional strategies.

Data Gathering

Collecting information through secondary and primary sources for market analysis.

Analyzing Results

Evaluating and interpreting data collected during market research.

Operational Skills

Skills required to effectively manage business operations.

Market Trends

Patterns and tendencies within a market that influence business strategies.

Entrepreneurial Mindset

A way of thinking that involves recognizing and seizing business opportunities.

Business Climate

The overall economic environment affecting business operations.

Competitor Analysis

The evaluation of competitors' strengths and weaknesses in the market.

Supplier Relationships

Connections with suppliers that affect production and inventory.

Substitute Products

Products that can serve as an alternative to others in the market.

Innovation

The introduction of new ideas or products in the marketplace.

Business Viability

The potential success and sustainability of a business opportunity.

Cost Structure

An outline of all costs involved in running a business.

Customer Value

The worth that customers assign to a product or service derived from the benefits it offers.

Feasibility Analysis

Assessment of the practicality and viability of a proposed business idea.

Competitive Advantage

Unique advantages that set a business apart from its competitors.

Networking

Building relationships that can provide support and insights for business ventures.

Distribution Channels

The pathways through which products and services reach customers.

Promotion Strategy

The methods used to communicate and promote a product to potential customers.

Financial Projections

Estimates of future financial performance, essential for attracting investors.

Social Entrepreneurship

Business ventures focused on solving social issues while being financially sustainable.

Government Policies

Regulatory measures that affect business operations and opportunities.

Economic Conditions

Overall financial factors influencing the business landscape.

Technological Change

Alterations in technology that impact business operations and opportunities.

Environmental Factors

Risk-related elements that influence business sustainability, such as climate change.

Cultural Barriers

Social factors that can hinder market entry or product acceptance.

Client Needs Analysis

Assessment of the needs and preferences of potential customers.

Marketing Strategies

Plans developed to attract and retain customers in the market.

Performance Metrics

Tools used to evaluate the success of business strategies.

Consumer Behavior

The study of how individuals make decisions about purchasing goods and services.

Market Entry Strategy

A plan developed to enter a new market effectively.

Investment Opportunity

A business prospect that promises returns on investment.

Financial Sustainability

The ability of a business to maintain stable revenues and profits over time.

Entrepreneurial Skills

Abilities and knowledge required to successfully start and run a business.

Brand Differentiation

The strategy of distinguishing a brand from its competitors.

Financial Literacy

Understanding financial concepts necessary for managing business finances.

Cross-Promotional Strategies

Joint marketing efforts between businesses to reach a wider audience.

Client Relationship Management (CRM)

Strategies for managing a company's interactions with current and potential customers.

Lean Startup Methodology

An approach for developing businesses and products that aims to shorten product development cycles.

Exit Strategy

A planned approach for owners to sell or transfer their business.

Business Incubator

A program designed to support the growth of startups by providing services such as mentoring.

Market Segmentation

The process of dividing a market into distinct subsets of consumers with common needs.

Direct Marketing

A promotional method where businesses communicate directly with consumers.

Competitive Landscape

The overview of competitors, including their strengths and strategies.

Innovation Strategy

A plan for developing new products and improving services to gain market share.

Employee Engagement

The level of commitment and involvement an employee has towards their organization.