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Diversity means versatility regardless of age, race, gender, color, nation, origin, or any other characteristics.
1. Write down differences between an entrepreneur and a Small Business Owner.
Comparison Chart:
Entrepreneur
|
Small Business
Owner
|
Value creator
|
Earning
livelihood
|
Valuing
employees and customers
|
Valuing real estate
and inventory
|
Hiring best
talents
|
Recruiting
high qualified employees at a lower salary
|
Acceleration
of growth
|
Stability of
growth
|
Enjoying financial
freedom and searching equity investor as partners
|
A continuous
flow of income
|
2. Write down the benefits of entrepreneurship.
Benefits of entrepreneurship:
a. Getting the opportunity to fulfill psychological satisfaction
b. Creating one's destiny
c. Making a difference from organizations
d. Reaching one's full potential
e. Earning impressive profits
f. Contribution to society and social recognition for one's efforts
g. Enjoying one's tasks and having fun at one's passion
3. Write down the drawbacks of entrepreneurship.
Drawbacks of entrepreneurship:
a. Uncertainty of income and getting a reward at the last
b. Probability of losing the whole investment
c. Too many tasks
d. Facing Hazard condition before the business gets established
e. Having a high level of stress
f. Taking complete responsibilities
g. Facing discouragement from the environment
Reasons behind boosting up entrepreneurship ( Feeding the Entrepreneurship Fire):
a. Entrepreneurs are recognized as heroes in the society and the country
b. Entrepreneurial education in developed countries
c. Demographic and economic factors
d. Shifting to the service economy where entrepreneurs have higher opportunities
e. Technology advancement
f. Independent lifestyle
g. Cloud-computing facility
h. Cultural diversity
i. Copreneurs
j. Corporate cast-offs
k. Corporate drop-outs
l. Retiring baby boomers
Short Note:
Shifting to the Service Economy: Agricultural products are supplied in industries. The progress of other sectors is faster than that of the agricultural sector.
Demographic and Economic Factors: Age, education, economic shape
Cloud-computing: It refers to the utilization of virtual space productively.
Cultural Diversity: Regarding our country, young, women, minority-people, immigrant, part-time workers practice entrepreneurship. Besides, home-based and family-based entrepreneurship is practiced.
Co-preneurs: Entrepreneurial couples work together as co-owners of their business.
Corporate cast-offs: They are unemployed at present or are eliminated from jobs and they are highly skilled and educated
Corporate drop-outs: They have left out jobs to become entrepreneurs.
Retiring Baby-boomers: Baby-boomers have entered after their retirement. They are one-quarter of the US population.
The Power of Small Business:\
a. Small businesses employ less than 100 people.
b. 5% of small companies create 65% of jobs.
c. Gazelles are small companies that are growing at 20 percent or more each year. They create 70 percent of net new jobs in the economy. Their annual sale is about $100,000.
d. Small businesses create 16 times more patents than large companies. Because large companies have a big market share and as a result, they do not need to focus on innovation. Small businesses create innovation because they have to survive in the market competition. To survive in the competition, small businesses need to become unique.
4. Write down putting failure into perspective.
Short Note:
Successful entrepreneurs learn to fail intelligently:
a. Failure is considered as a great way to learn.
b. A successful entrepreneur discovers what is missing.
c. Failure may be considered a sign of coming success.
d. Failing often creates immunity to fear.
e. Failure creates entrepreneurial character traits.
f. Failure sweetens success.
g. Failure creates a great comeback story.
Avoiding the Pitfalls of Small Business Failure:
a. Knowing one's depth
b. Financial viability measurement
c. Forecasting success in the market
d. A solid business plan
e. Understanding a financial statement
f. Management of financial resources
g. Learning management of human resources
h. Setting one's business apart from the competition
Short Note:
Setting one's business apart from the competition: Uniqueness and innovative ideas are weapons for setting one's business apart from the competition.
Ten Deadly Mistakes of Entrepreneurship:
a. Lack of experience
b. Poor financial control
c. Poor Strategy
d. Uncontrolled growth
e. Poor location
f. Improper inventory control
g. Incorrect pricing
h. Inability to make the "entrepreneurial transition"
Experience increases the 125% success rate. Uncontrolled growth of an organization converts into cancer of the organization. The proper way of managing inventory is a must for avoiding mistakes in entrepreneurship. Besides, supply chain management is a considerable matter in entrepreneurship. Deciding the pricing strategy such as penetrating pricing, premium pricing is necessary for entrepreneurship. The ability to bring about a big change in management and addressing change and scopes is vital in entrepreneurship.
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