MANAGEMENT CONCEPTS, THEORIES AND PRINCIPLES

ENTREPRENEURSHIP QUIZ
Answer the following questions extensively.
1. How do FBL, TBL, and SET approaches affect the entrepreneurs in putting up their business?
These approaches affect entrepreneurs by helping them with establishing their
processes and ideas to properly put up their business. Entrepreneurs must under-go the four
steps of the entrepreneurial process and each approach have different techniques to identify
what strategy to take. Each approach gives an objective to know what part of the plan is
the most important and it will give more insights into what to do in the future.
FBL is based on seeking financial value capture, which makes entrepreneurs more
focused on the financial aspects of their business and that includes its market size, price,
and costs. TBL seeks financial value capture by way of reducing negative externalities. It
has some aspects of FBL but it focuses more on the idea of how entrepreneurs can profit
from negative externalities. Lastly, SET seeks value creation along with positive socio-
ecological externalities. This approach is helpful to entrepreneurs when establishing a
relationship with stakeholders and is most open to thoughts to co-develop the idea.
All of these approaches help put up businesses but it all comes down to what kind
of business an entrepreneur plan on since it depends on the ideas and objective of the
entrepreneur.

2. What personal and professional qualities an entrepreneur should posses to make his business
successful? Why are the said qualities important?

There are many qualities that an entrepreneur should possess in making a business
successful, both personal and professional. For personal qualities, one must be responsible,
committed, respectful, patient, determined, persistent, sociable, and self-motivated while
for professional qualities one must have self-confidence, creativity, adaptive, goal-
oriented, risk-taker, and a good decision-maker. There are a lot more qualities to include
but the said qualities are the most important.
On a personal level, it is important for an entrepreneur to know a basic
understanding of oneself and other people. They must know how to be responsible for their
actions as well as perform the other qualities to completely understand right and wrong.
On a professional level, the qualities they possess on a personal level are applicable in
addition to the much more complex qualities. From this perspective, an entrepreneur must
think for the sake of everyone and everything. In managing a successful business, they
must think for whole and calculate their every decision.
By possessing all of these qualities, an entrepreneur can easily manage his
business because each and every one of these qualities can help with what kind of
mindset, attitude, skills, and plans an entrepreneur will make for his business.