Entrepreneurship, SMEs, Business Plans and Market Strategy

A) Enterprise

• Definition: An enterprise is a business or company that aims to make a profit by providing goods or services.
• Entrepreneurs: Individuals who start and run businesses, taking financial risks to earn profit.
• Entrepreneurship: The process of creating, launching, and running a new business.

High-Growth vs Lifestyle Businesses

• High-Growth: Rapid expansion through innovation and scaling.
• Lifestyle: Smaller ventures aimed at maintaining a comfortable work–life balance.

Small and Medium-sized Enterprises (SMEs)

• SMEs: Businesses with limited employees and revenue; crucial for job creation and innovation.

B) Made or Born Argument

• Born: Inherent qualities such as creativity and risk-taking.
• Made: Skills developed through education and experience.
• Compromise View: A combination of inherent traits and learned skills.

D) Entrepreneurial Attitudes and Characteristics

• Motivation: Varies from profit-driven goals to seeking financial security.
• Behavioral Characteristics: Key abilities include spotting opportunities and taking calculated risks; traits include determination and creativity.

E) Knowledge and Skills Requirements

• Entrepreneurial Skills: Opportunity recognition, risk management, and strategic thinking.
• Owner-manager Skills: Financial management, operations, and marketing.
• Changing Roles: Skill requirements evolve as businesses grow.

Chapter 3: Barriers and Business Plans

A) Barriers to Starting and Growing a Business

• Starting: High costs, difficulty accessing finance, strong competition, and regulatory compliance.
• Growing: Operational focus challenges, risk aversion, financial barriers, and market instability.

B) Importance of Business Plans

1. Focusing Ideas: Define objectives and assess viability.
2. Setting Targets: Create quantifiable financial forecasts and benchmarks.
3. Raising Finance: Essential for securing investors or loans.
4. Measuring Progress: Regular updates and comparisons to forecasts.

Chapter 4: Market and Competition

A) Identifying Customers

• Understanding: Customer motivations, location, buying criteria, and segmentation.
• Market Segmentation: Target customer groups based on usage and demographics.

C) Market Research

• Sources: Market size, competitor information, and customer demographics.
• Methods: Quantitative research (factual data) and qualitative research (customer views).

D) Understanding the Competition

• Barriers to Entry: Competitor resources, market control, and customer loyalty.
• Porter’s Five Forces: Analyze industry competitiveness and profitability.

E) Competitive Advantage

• Strategies: Cost leadership, differentiation, and focus.
• USPs: Unique selling propositions that highlight product benefits.