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Best notes for OBS 114
- Course
- OBS 114
- Institution
- University Of Pretoria (UP)
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lOMoARcPSD|14794705OBS114 Chapter 1-10
Business management (University of Pretoria)
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Chapter 1:
Entrepreneurship
4 Key ideas when starting an entrepreneurial small business
A small business has around 1-50 people and its owner manages the business daily.
- Believe that you can do it.
o Self-efficacy – a person’s belief in their belief to achieve a goal.
- Plan before implementing action.
- Ask for help from other entrepreneurs.
- Do well & do good for others.
An entrepreneur is someone who notices opportunities and decides how to mobilize the resources
necessary to produce new and improved goods and services.
Firms’ typical start-up processes:
- Feel – entrepreneur has a feeling about starting a business or creating a product.
- Check - check the likelihood for success in their idea through analysis.
- Plan – making a business plan or business modelling.
- Do – approach refinement until they have a successful firm.
Entry competencies
4 elements needed to start a business (brie model)
The Entrepreneurial process
Opportunity
- Consider market readiness, consumer trends & behaviors that seek
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Products or services
Resources
- Let opportunity guide you towards the level of resources needed (move away from
bootstrapping).
- Minimize and control rather than maximize and experience cash flow problems.
Entrepreneur/ Team
- A good team can unlock higher potential with any opportunity and manage growth related
pressures.
Creativity, communication & leadership
- Entrepreneur needs to be able to create balance by applying creativity, leadership and
maintaining effective communications.
Business plan
- Where opportunity, resources and teamwork are integrated into a complete strategic plan for
business.
Small businesses and the economy
Provide new jobs
- Small businesses are more likely to offer jobs to people with atypical work histories or needs,
new people to the workforce, people with uneven employment histories and people wanting
part-time work. This makes them more attractive to local and state governments.
Innovative
- Small businesses offer a special environment in which the new can come into being.
New opportunities
- People who own their own business are presented with tremendous opportunities – to improve
their life, wealth, help them move upward economy and society.
- Small businesses offer communities the opportunity to enjoy goods and services.
Two Aspects of Global Entrepreneurship
- A factor driven economy is a nation where the major forces for revenue, jobs and taxes come
from farming or extractive industries.
o Pakistan, Jamaica & Venezuela.
- Efficiency driven economy is a nation where industrialization becomes the major force of
providing jobs, revenue and taxes while minimizing cost and maximizing productivity.
o Russia, Brazil & China.
- Innovation driven economy is a nation where the major forces for jobs, revenues and taxes
come from high value-added production based on new ideas from professional services based
on higher education.
o Germany & US.
- Opportunity driven entrepreneurship is creating a firm to improve one’s income or a products
or service.
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- Necessity driven entrepreneurship is creating a firm as an alternative to unemployment.
CSI Entrepreneurship
CSI – corporate, social and independent.
- 3 aspects differ on what they focus on.
o Creating – looks at making new entities.
o Customer-focus – being in tune with the market
o Efficiency – doing the most work with the least resources.
o Innovation – looks at a new thing or way of doing things.
- Independent entrepreneurship (form of entrepreneurship where a person or group owns a for
profit business) focusses on all 4.
- Corporate entrepreneurship (takes place in existing businesses around new products, services or
markets) focusses on customer-focus, efficiency and innovation.
- Social entrepreneurship is solving the creation of self-sustaining charitable and civic
organisations. It focusses on creation, customer-focus and efficiency.
- Sustainable entrepreneurship is an approach or operating a firm that does things that minimizes
the depletion of natural resources and maximizes use of recycled material to improve the
environment.
5 Aspects the most successful entrepreneurs display
- Passion – an intense positive feeling the entrepreneur has toward the business.
- Perseverance
- Promotion-Prevention Focus – balancing maximizing gains and minimizing losses.
- Planning style
o Comprehensive planners – develop long term plans for all business aspects.
o Critical-point planners plan around most important business aspect first they consider if
more plans are needed.
o Opportunistic planners – start with a goal & look for opportunities to complete it.
o Reactive planners – passive, wait for cues to determine what action to take.
o Habit-based planners – actions dictated by their routines.
- Professionalism – the extent which a firm meets or exceeds standard business practices.
o Expert business personalization when all major functions of the firm are conducted
according to the standard business practices.
o Specialized business professionalization when owners are passionate about certain key
business functions and pursues them in a professional manner.
o Minimalized business professionalization when entrepreneur does everything the
simplest way possible than professional.
Entrepreneurial Operational Competencies
- Competencies are forms of business-related expertise.
o Industry specific knowledge – activities, knowledge and skills specific to businesses in an
industry.
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