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Characteristics of Successful Entrepreneurs

Enterprise and Entrepreneurs

Introduction
Enterprise: The combination of attitudes and skills that helps an individual turn an idea into reality.
Entrepreneur: Someone who makes a business idea happen, either through their own effort, or by
organising others to do the work
o Courage and initiative ­…

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o More people starting their own business -> Economy will develop dynamically
Issues for analysis
Are real entrepreneurs born or made? ­ Can skills be learnt?
Do entrepreneurs tend to be school underachievers whose success comes from their reaction against school
failure?
Does the government do enough to help entrepreneurs?…

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Too much charisma is dangerous ­ too much influence and may make wrong decisions

What is the best style of leadership?
Depends on the situation
o Crisis ­ autocratic managers
o Stable ­ democratic managers
Depends on personalities of the managers and workers
Depends on abilities/skills of the managers and…

Page 4

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Identifying a Business Opportunity

Building Demand and Managing Supply

Introduction
Demand: A measure of the level of interest customers have in buying a product backed by the ability to pay
Supply: The quantity of a product that producers are able to deliver within a specific time period

What makes a…

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o Daily sales variations, seasonal sales variations, etc.
Anticipate varying demand by varying supply (factors of production ­ land, labour, capital)

Issues for analysis
Analyse supply and demand in different circumstances to different businesses or markets
Ability to separate what is from what could be ­ good judgement based on…

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Evaluating a Business Opportunity
Market Research

Introduction
Gathering of information about consumers, competitors and distributors within a firm's target market
A way of identifying consumers' buying habits and attitudes to current and future products
Data may be numerical (quantitative) or psychological (qualitative)

Conducting start-up market research through secondary research
Discovering…

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Quantitative research
Asking of pre-set questions on a large sample of people to provide statistically valid data
o Sampling ­ ensuring research results are typical of the whole population even though only a sample
has been interviewed
Sampling method: The approach chosen to select the right people to be part…

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o Intelligent analysis of research findings

Issues for analysis
Key role of market research in market orientation ­ basing decisions on the consumer rather than the needs
or opinions of producers
o Act on evidence obtained from research, not feelings
o However, innovations may be created through creativity and hunch,…

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o Actions of competitors
The decrease in price of a competitor -> Increase in demand for competitor -> Decrease in
demand for own goods and services
o The firm's own marketing activities
Advertisement -> Increase sales of own goods and services -> Decrease in demand for
competitor goods and services…

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Spotting a good business idea is based on a good understanding of consumers tastes and the needs of the
retail trade
o Observation
o Brain-storming: where 2 or more people are encourages to come up without anyone criticising their
ideas
o Thinking ahead: considering future opportunities that will arise if…

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