chapter 6

ENTREPRENEURSHIP AND MANAGEMENT

  • Entrepreneurs provide products/services and create employment.

  • Often engaged in informal trade.

EXAMPLES OF ENTREPRENEURS

  • Notable figures: Mark Shuttleworth, Oprah Winfrey, Pam Golding.

ENTREPRENEURIAL QUALITIES

  • Passionate visionaries.

  • Creative thinkers and challenge conventions.

  • Risk-takers with a positive attitude.

  • Strong leadership and persuasion skills.

  • Independent and internally motivated.

  • Have perseverance, commitment, and are opportunists.

ENTREPRENEURIAL SKILLS

  • Planning, organizing, leading, controlling.

TYPES OF ENTREPRENEURS

  • Social entrepreneur, Technopreneur, Ecopreneur, Tenderpreneur.

ENTREPRENEURIAL PROCESS

  1. Environmental scanning.

  2. Planning.

  3. Resourcing.

  4. Preparation.

  5. Action.

  6. Evaluation.

ENVIRONMENTAL SCANNING BENEFITS

  • Identifies threats/opportunities.

  • Informs both short-term and long-term strategies.

  • Encompasses both internal and external aspects.

  • Types: Pre-business and continuous scanning.

PLANNING

  • Goals: SMARTER (Specific, Measurable, Achievable, Realistic, Time-related, Ethical, Recordable).

  • Conduct SWOT analysis and create business/action plans.

RESOURCING

  • Mobilize resources: investors, materials, finances, staff.

PREPARATION

  • Consider premises, marketing, stock, admin issues.

ACTION

  • Focus on innovation and market development.

EVALUATION

  • Gather feedback on performance.

BUSINESS PLAN

  • Essential for success; varies by business type.

GANTT CHARTS

  • Visual project management tool; shows timelines and responsibilities.

  • Aids in estimating timescales, task overlap, and adjustments.

ACTION PLANS

  • Detailed steps post-Gantt chart completion.

WORK BREAKDOWN STRUCTURE (WBS)

  • Tool for task breakdown and resource allocation.

MANAGEMENT DEFINITION

  • Directing resources to achieve goals.

LEVELS OF MANAGEMENT

  • Top, Middle, and Lower management with distinct decision-making roles.

BASIC TASKS OF MANAGEMENT

  • Planning, Organizing, Activating (leading), Controlling.

ADDITIONAL MANAGEMENT TASKS

  • Decision making, Delegation, Discipline, Motivation, Communication, Co-ordination.

COMMUNICATION

  • Vital for understanding and facilitating work among employees.

CO-ORDINATION

  • Aligning various stakeholder interests.

DELEGATION

  • Empowering subordinates with responsibilities.

DISCIPLINE

  • Governed by Labour Relations Act; varies based on offense severity.

DECISION MAKING

  • Influenced by political, economic, social, technological factors.

MOTIVATION

  • Influenced by ability and willingness; theories include Maslow’s hierarchy and Adams' equity.

DIFFERENCES BETWEEN MANAGER AND ENTREPRENEUR

  • Manager: Works in an existing business, does not bear financial risks, executes plans.

  • Entrepreneur: Builds new businesses, bears risk, innovates.

ACTIVITIES OF ENTREPRENEUR

  • Generating ideas, conducting market research, recruiting, procuring resources, implementing ideas.

INTRAPRENEUR

  • Innovators within large companies, converting ideas into products/services.

ULTRAPRENEUR

  • Identifies business opportunities, builds teams, aims for rapid returns through innovation and repeat processes.