REVIEWER FOR ENTRENEURSHIP
Definition of Entrepreneurship
Entrepreneurship refers to the ability and readiness to develop, organize, and run a business
enterprise, along with any of its uncertainties to make a profit. The person who undertakes these
risks is known as an entrepreneur.
Key Elements: Risk-taking, innovation, business organization.
Entrepreneurial Innovation and Opportunity Seeking
Entrepreneurs are innovative and always looking for opportunities. They continuously explore new
or improved ideas and assess their viability in the marketplace.
The Role of an Entrepreneur
Entrepreneurs are individuals who create new products or services to solve existing problems or
improve upon current solutions.
Economic Analysis and Its Impact
Economic analysis helps identify opportunities for growth, job creation, and increased income,
leading to economic development and a better standard of living.
The Importance of Entrepreneurship Education
Having a degree in entrepreneurship provides foundational knowledge, but success depends on
practical application, continuous learning, and working through the entrepreneurial process.
Entrepreneur vs. Businessman
Entrepreneurs tend to be innovative and revolutionary, whereas businessmen typically follow
existing models for buying and selling goods to earn profits.
Impact of Oil Price Hike on Businesses
An increase in oil prices impacts businesses by raising costs for goods made with petroleum
products, affecting overall prices in the market.
Key Difference Between Entrepreneurs and Businessmen
Entrepreneurs are innovative and create value in the marketplace, while ordinary businessmen
might focus more on selling products to make a profit.
Importance of Market Surveys
Market surveys provide valuable information about customer preferences, purchasing habits, and
demand, which help guide business decisions.
Statements About Entrepreneurial Success
Statement 1 is false: Possessing entrepreneurial traits does not guarantee success as many other
factors contribute to success.
Statement 2 is false: Quality is defined by consumer standards, not just the entrepreneur’s
perception.
Healthy Food Campaign in Schools
Green represents the healthiest food choices, which are promoted in schools for better eating habits.
Impulsive Buyer
An impulsive buyer makes purchases without planning or prior thought, driven by immediate
desire or external triggers.
Marketing Strategy
The marketing mix refers to the combination of elements (product, price, place, and promotion)
used to satisfy customer needs.
Quality Control
Quality Control ensures that products meet a certain standard and are acceptable to consumers, by
continuously monitoring and managing production processes.
Market Analysis
Market analysis involves studying the market to understand prospective buyers, competitors, and
the overall environment.
Skill Set of Entrepreneurs
Entrepreneurs need a diverse set of skills, including organizational skills, to effectively manage
their businesses.
Importance of Entrepreneurial Teams
Creating a team helps distribute risks and leverage each member’s expertise, making the venture
more robust.
Product Planning
Product planning involves understanding the cost of production and the financial aspects of
bringing a product to market.
Cost Per Serving
Cost per serving refers to how much it costs to produce a single serving of a product or recipe.
Microenterprise
A microenterprise is a small business that usually employs fewer than 10 people, often with limited
operations.
Capital in Business
Capital refers to the financial resources available for investing in a business venture, including
money, equipment, or assets.
Importance of Financial and Capital Mix
Selecting the best financial and capital mix helps maximize return on investment while minimizing
financial risk.
SWOT Analysis
Definition: A strategic tool used to evaluate Strengths, Weaknesses, Opportunities, and Threats
in a business environment.
Application: It helps entrepreneurs and businesses assess their position and identify areas of
improvement or growth opportunities.
Example: A business might use SWOT to determine whether they should launch a new product or
enter a new market.
Tangible vs Intangible Assets
Tangible Assets: Physical items that can be touched or measured, such as products, goods,
buildings, and machinery.
Intangible Assets: Non-physical assets that hold value, like patents, trademarks, copyrights, and
goodwill.
Types of Business: Service vs Goods
Service Business: These provide intangible products, meaning they offer services rather than
physical goods. Examples include movie houses, beauty parlors, and funeral outlets.
Goods Business: These involve the sale of physical products.
Market Segmentation
Definition: The market is divided into various segments based on characteristics, behavior,
culture, traditions, and needs.
Purpose: Market segmentation helps businesses tailor their products and marketing strategies to
specific consumer groups.
Entrepreneurial Product Development
Myth vs Fact: Entrepreneurs typically do not create products without existing needs or wants in
the market. Successful products are often based on solving an identified problem or fulfilling a
consumer demand.
Consumer Buying Decision Process
Stages: The consumer decision process begins with recognizing a need or problem. Gathering
information comes after need recognition, not before. Understanding these stages is crucial for
effective marketing strategies.
Marketing Mix (7 Ps)
The 7 Ps:
o Product, Price, Place, Promotion, People, Packaging, Positioning
The marketing mix is often called the "Ps of marketing."
Importance of Market Research
Myth vs Fact: Entrepreneurs must conduct entrepreneurial research to understand consumer
behavior. Relying solely on common sense may lead to inaccurate conclusions and missed
opportunities.
Why Research is Important: It helps businesses gather real data, predict trends, and make
informed decisions based on actual market needs.
Costs in Manufacturing
Definition: Manufacturing costs are incurred when creating a product. These include:
o Raw materials
o Labor costs
o Overhead (utilities, rent, etc.)
These costs must be carefully managed to ensure the profitability of the business.
Product Life Cycle and Pricing Strategy
Stages of the Product Life Cycle:
o Introduction: Products are introduced to the market, often with low prices to attract
customers (penetration pricing).
o Maturity: The product is established, and pricing may change depending on competition and
market saturation.
Pricing Adjustment: Businesses often adjust their pricing strategies at different stages of the
product life cycle to maximize profitability.
