Entrepreneurship and Management Flashcards

Entrepreneurship

• Entrepreneurs provide products/services and create employment.
• Many operate in the informal trade.
• Examples: Mark Shuttleworth, Oprah Winfrey, Pam Golding.

Entrepreneurial Qualities

• Passionate visionaries, creative thinkers.
• Risk-takers with a positive attitude.
• Good leaders, persuasive, independent, and internally motivated.
• Perseverant, committed, and opportunistic.

Entrepreneurial Skills

• Planning, organizing, leading, and controlling.

Types of Entrepreneurs

• Social entrepreneur
• Technopreneur
• Ecopreneur
• Tenderpreneur

The Entrepreneurial Process

• Environmental scanning, planning, resourcing, preparation, action, and evaluation.

Environmental Scanning

• Identifies threats and opportunities.
• A 360-degree process (internal and external).
• Types: before starting the business and continuous.
• Continuous scanning uses tools like SWOT, Porter's Five Forces, and PESTLE.

Planning

• Setting SMARTER goals: Specific, Measurable, Achievable, Realistic, Time-related, Ethical, Recordable.
• Involves SWOT analysis, business plan, and action plan.

Resourcing

• Mobilizing resources: investors, raw materials, capital items, finances, and staff.

Preparation

• Premises, marketing, stock ordering, and administrative issues.

Action

• Innovation for new markets, processes, and ideas.

Evaluation

• Evaluate and get feedback.

Business Plan

• A tool for marketing ideas and essential for success.
• Used by existing businesses for intrapreneurship or refocus.

Timelines

• Arrange past and future events chronologically for visual planning.

Gantt Charts

• Include responsibilities and estimate task times.
• Show simultaneous activities and task inter-relatedness.

Action Plans

• Detailed planning after Gantt chart.
• Steps: Set goals, gather information, analyze assumptions, choose plan, detail plan, action, review.

Work Breakdown Structure (WBS)

• Tree-type planning tool breaking down project elements.
• Used for resource allocation and costing.

Gantt Chart vs. WBS

• Gantt: Time allocation and scheduling.
• WBS: Isolates elements for roles, budgets, and resource allocation.

Definition of Management

• Directing a business using resources to achieve goals and ensuring sustainability.
• Accountability for innovative resource application.

Levels of Management

• Top: Strategic, long-term (CEO).
• Middle: Tactical, medium-term (marketing manager).
• Lower: Operational, short-term, routine (team leaders).

Basic Tasks of Management

• Planning, organizing, activating (leading), controlling.

Additional Elements of Management

• Decision making, delegation, disciplinary action, motivation, communication, coordination.

Planning

• Creative and logical thinking to improve future performance.
• Decisions on what, how, when, and who.

Principles of Effective Planning

• Rational process bridging current status and future projections.
• Funnel approach considering political factors.
• Flexibility based on available resources.
• Planning at all levels with buy-in.

Importance of Planning

• Focuses on business objectives, lowers risks, integrates functions, and facilitates control.

Steps in Planning Process

• Establishing objectives, deciding on planning period, considering alternatives, implementing, controlling.

Organising

• Identifying activities to reach objectives and assigning roles.

Steps in Organising

• Consider objectives, identify/group activities, assign duties, delegate authority.

Advantages of Proper Organisation

• Better communication, identified stakeholders, balanced long-term vision, stimulates creative thinking, structures for growth.

Leading or Activating

• Encouraging the workforce.
• Principles: harmony of objectives, clear communication, unity of direction, awareness of employee difficulties.

Leadership and Management

• Manager is appointed, leader influences.
• Manager has formal power, leader has informal power.
• A manager should be a leader: influence, guide, encourage, mediate, plan.

Leadership/Management Styles

• Autocratic, Democratic, Laissez-faire.

Control

• Measure performance against standards to reach objectives.
• Steps: Establish standards, measure performance, take corrective action.

Components of Control

• Suitable, flexible, employee-centered, future-focused, economical.

Communication

• Exchanging information and opinions for understanding.

Coordination

• Aligning diverse stakeholder perceptions and interests.

Delegation

• Assigning responsibility and authority to subordinates.

Discipline

• According to Labour Relations Act: verbal warning, written warning, suspension, dismissal.

Decision Making

• Affected by political, economic, social, technological factors, competitor behavior, stakeholders, customer expectations.

Motivation

• Employees motivated to achieve goals and interested in their work.
• Performance depends on ability and willingness.
• Motivational theories: Maslow's hierarchy and Adam's equity.
• Maslow:
  • Psychological needs,
  • Security needs,
  • Social needs,
  • Esteem needs,
  • Self-actualization.
• Adam’s Equity: Sound relationship between performance and rewards.

Manager vs. Entrepreneur

• Manager: Works in existing business, employee, less financial risk, receives salary, executes plans.
• Entrepreneur: Builds own business, owner, bears financial risk, receives profit, innovates.

Activities Performed by Entrepreneur

• Generating ideas, market research, obtaining funds, recruiting, procurement, implementing ideas.

Intrapreneur

• Employee in large business creating new ideas.

Ultrapreneur

• Identifies opportunity, establishes business, appoints management team, sells shares quickly for maximum return.