Enterprise and Entrepreneurship Lecture Notes

Flashcards for reviewing key vocabulary and concepts from the lecture notes Chapter 1-5

Enterprise

Any identified idea translated into a planned and satisfactorily implemented activity, or a business venture.

Enterprise Steps

Idea Identification, Planning, Implementation, and Profit Motive.

Enterprise Classifications

Private, public, formal, informal, individual, community, local, foreign, small, large, business, social, manufacturing, service, consumer, or industrial.

Synergy in Enterprises

The synergistic nature of enterprises in a community creates opportunities for enterprising men and women.

Micro/Cottage Industries (Nigeria)

Total investment not exceeding N1,500,000.00 (excluding land), with a workforce of not more than 10.

Small Scale Industries (Nigeria)

Total investment between N1,500,000.00 and N50,000,000.00 (excluding land), and/or a workforce between 11 and 100 workers.

Medium Scale Industries (Nigeria)

Total investment between N50,000,000.00 and N200,000,000.00 (excluding land), and/or a labor force between 101 and 300 workers.

Large Scale Industries (Nigeria)

Total investment over N200,000,000.00 (excluding land), and/or a labor force of over 300 workers.

Entrepreneur

A person who starts a new business, takes initiative and risks, creates something new, or uses resources in uncommon ways to provide value.

Entrepreneurship

A state of mind where a person habitually creates and innovates to build something of recognized value around perceived opportunities.

Profit and Income Generation (Self-Employment)

The amount of income left after all expenses have been paid; a major reward expected when starting a new business.

Job Security (Self-Employment)

The assurance of continued employment and income; a reason people create their own enterprises.

Status Factor (Self-Employment)

Social rank or position; self-employed persons receive attention and recognition, which may lead to higher status.

Work Flexibility (Self-Employment)

Self-employment gives the individual the job of being an employer and a leader rather than an employee and a follower.

Personal Satisfaction (Self-Employment)

Doing what you want with your life; enabling you to spend each work day enjoying your job.

Independence (Self-Employment)

Freedom from control of others; ability to use your knowledge, skills, and abilities as you deem fit.

Challenges of Self-Employment

Uncertain or low income, long working hours, possible loss of invested capital, routine assignments, risk, time demand, and managing people.

Innovative Entrepreneur

One who launches new products, discovers new markets, establishes new methods of production, and restructures the enterprise.

Imitative Entrepreneur

Adopts successful innovations inaugurated by others, particularly suitable for underdeveloped regions.

Fabian Entrepreneur

Cautious and skeptical in experimenting with change, imitating only when necessary to avoid losses.

Drone Entrepreneur

Refuses to adopt opportunities to make changes, even at the cost of reduced returns.

Social Entrepreneurship

A process by which citizens establish or transform institutions to advance solutions to social problems.

Business Enterprises

Profits are a primary motive.

Non - Business Enterprises

Various types of human needs are addressed

Vision (Entrepreneurial Characteristic)

The ability to spot an opportunity and imagine something other people are not imagining.

Determination/Tenacity

Tenacity is the unyielding firm desire of an entrepreneur to pursue his vision and ideas and turn them into a desired end, irrespective of obstacles and challenges faced, while determination is that extreme strong desire to achieve success.

Ten Secrets of Successful Entrepreneurs

Positive thinking, passion, focus on strengths, no consideration of failure, conscious planning, hard work, appreciate networking, eager to learn, perseverance, self-discipline.

Risk Bearer

An entrepreneur makes undertakes the risks from potential changes in consumer demand, production techniques, and new inventions.

Knowledge of the business

A potential venture must be headed by an entrepreneur who has a thorough understanding of the business services he or she or she intends to launch.

Innovative Role

An entrepreneur performs is to innovate new products, services, ideas and for the enterprise.

Planning

Pre- determined course of action to accomplish the set business objectives.

Managerial Functions

Planning, Organizing, Staffing, Directing, Controlling.

Entrepreneurial Theories

Economic, Network, Social Relations, Psychological, Managerial, Ecological.

Economic Theory

Focus is on the use of resources to achieve a beneficial gain.

Network Theory

Focuses on the social links that enhance or hinder entrepreneurs.

Social Relations Theory

Assesses the entrepreneur in the context of the socio-cultural environment.

Psychological Theory

Personality-based theory emphasizing the need for achievement.