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CHAPTER 1
ENTREPRENEURSHIP AND
SMALL BUSINESS
BSM1501: Business Management IA MANAGEMENT
CHAPTER 1 IN PERSPECTIVE

ENTREPRENEURSHIP WHY START AN ENTERPRISE?

Why start an enterprise? Needs in market for products and services

Entrepreneur identifies the need

Characteristics
Uses factors of production

Formal/Informal enterprises Creates an enterprise

Makes a profit
Key success factors

ENTREPRENEUR: Main characteristics

ENTREPRENEUR, INTRAPRENEUR
AND SMALL BUSINESS MANAGER

¾ Willing to take calculated risks

¾ Starts
St t an own enterprise
t i
¾ Is creative and innovative
¾ Is responsible for the growth of the Use main characteristics to determine:
enterprise Similarities and Differences

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MAIN ENTRE- SMALL INTRA-

CHARAC- PRENEUR BUSINESS PRENEUR
MANAGER
CREATIVITY INNOVATION
TERISTICS
Risk Takes risks Still carries Does not
financial want to take The ability to come up The use of creative
risks risk
with something new abilities
Own Owner of Owner of Does not
enterprise enterprise enterprise want to own
enterprise To come up with new Implementation of
Creativity/ Creative Not creative Creative ideas creative ideas
innovation and and and
innovative innovative innovative
Growth Growth No growth/ Growth
only profit

FORMAL/INFORMAL ENTERPRISES KEY SUCCESS FACTORS

Skills/expertise/aptitudes

¾ Characteristics
Personal characteristics
¾ Advantages
¾ Disadvantages Management skills

External factors