Business Flashcards

Entrepreneurship

Enterprise

  • Definition: Any attempt to start or do something new.
  • Examples:
    • Personal life: Learning a new skill, preparing household budgets.
    • School setting: Setting up a club/society, organizing an event.
    • Government: "Caillte" to preserve Irish forests, The Revenue Online Service (ROS) to do taxes online.
    • Businesses: Setting up a business or launching a new product.

Characteristics of an Entrepreneur

  • Definition: A personality trait you are born with.
  • Examples:
    • Flexible
    • Innovative
    • Realistic risk taker

Skills of an Entrepreneur

  • Definition: Ability or expertise developed through practice, experience, learning, and training.
  • Examples:
    • Time management
    • Planning and goal setting
    • Human relations skills

Initiative and Risk

  • An entrepreneur takes initiative and assumes personal and financial risks.

Rewards of Entrepreneurship

  • Being your own boss
  • Potential to keep all the profit
  • Flexible hours
  • Sense of satisfaction if successful

Risks of Entrepreneurship

  • Potential to lose money
  • Requirement to work long hours
  • Reputation may suffer
  • Sales may vary

Sources of Business Ideas (Products)

Internal Sources
  • Brainstorming sessions
  • Sales personnel
  • Ideas from employees (intrapreneurship)
  • Research and Development (R+D) department
External Sources
  • Competitors
  • Customer complaints or feedback
  • Market research

Product Development Process

  1. Idea Generation
  2. Product Screening
  3. Concept Development
  4. Feasibility Study
  5. Prototype Development
  6. Test Marketing
  7. Product Launch

Detailed Product Development Process

1. Idea Generation
  • Think up as many new ideas as possible.
2. Product Screening
  • The best ideas are considered further.
3. Concept Development
  • The chosen product is developed.
4. Feasibility Study
  • Determine if the product is commercially viable.
    • Is it possible to make the product?
    • Is it profitable?
5. Prototype Development
  • Develop a sample so the manufacturer can see how it is made.
6. Test Marketing
  • Tested on a small sample of the market to identify faults and gauge customer reaction.
7. Product Launch
  • Product goes into full-scale production, market, and sales.

Types of Enterprise

1. Financial (Commercial) Enterprise
  • Definition: A financial enterprise makes a profit by selling something (e.g., banks, shops, airlines).
  • Sole Trader:
    • A financial enterprise set up and owned by one person.
  • Shareholders:
    • A financial enterprise with thousands of owners.
Role of Financial Enterprise in Society
  • Goods and services
  • Employment
  • Taxation
  • Finance
  • Economic growth
  • Economic growth is the increase in goods and services produced in an economy from one year to the next.
Local Financial Enterprise Support
  • Mentoring service
  • Business training service
  • Financial support
  • Research and Development (R+D)
  • Export assistance

Social Enterprise

  • Definition: Puts people and community ahead of personal gain.
  • Social entrepreneurs start social enterprises to create jobs and tackle social, economic, or environmental issues.
  • Owned by members or the community, not shareholders.
  • Examples:
    • Credit Union
    • Young Social Innovators
    • Coder Dojo
Role of Social Enterprise in Society
  • Tackle social problems
  • Provide services
  • Employment
  • Finance
  • Enterprise culture

Cultural Enterprise

  • Definition: Provides local or national consumers with access to visual arts, theatre, film, music, or events.
  • Can be commercial or non-commercial.
  • Examples:
    • Abbey Theatre
    • Electric Picnic
Role of Cultural Enterprises in Society
  • Promote art and culture
  • Create employment
  • Entertainment