PAST SEM QUESTION:
Briefly explain five (5) of the personal entrepreneurial competencies (PEC) associated with successful entrepreneurs.
I. Concern for high quality of work.
An entrepreneur acts to do things that meet certain standard of excellence which givens him greater satisfaction. Example: compares own work or own company’s work favourably to that of other
The entrepreneur should be able to take actions that go beyond his job requirements and to act faster. Example: act to extend the business into new areas, product or services. III. Information seeking
An entrepreneur is able to take actions on how to seek information to help achieve business objectives or clarify business problems. Example: does personal research on how to provide a product or service.
IV. Sees and acts on opportunities
An entrepreneur always looks for and takes action on opportunities. Example: sees and acts on new business opportunities
An entrepreneur is able to make repeated efforts or to take different actions to overcome an obstacle that get in the way of reaching goals. Example: takes actions in the face of a significant obstacle.
What are the criteria used to evaluate and select viable entrepreneurial opportunities? 1. Can make money and has potential for growth.
2. Less competition.
3. Good fit between entrepreneur and opportunity.
4. Has competitive advantage.
5. Workable and efficient.
What are the factors that you need to consider when choosing the location for your business? a) Transportation facilities
* It should be ensured that transportation services are available at the location. Transportation services are vital so that carriage inward and outward of raw materials can be handled effectively.
b) Distance from raw material / suppliers
* The location chosen must be near the source. For example, a fish chips factory should be located at a place where fresh fish is easily available.
c) Price of premises
* Price of premises differs according to locality. In general, premises situated in a town or city area will cost more than premises situated in a rural area.
In preparing the organization plan, it is important include the organization structure of the business organization. Briefly explain the various types of organizational structure. * Product
* A line organisational structure based on products is more practical for businesses that produce multiple products. Every department acts as a profit centre and manages its own product.
* Number of workers
* A line organisational structure based on the number of workers is suitable for a business that has a substantial number of workers. The workers are divided into groups to make organizing and controlling more effective. Every group is lead by a manager or supervisor.
A line organisational structure based on functions is suitable for business
organisations that emphasise functional specialties to perform tasks. Activities
may be divided into marketing, production, administration and finance. Every
department has its own manager to supervise its activities
Briefly discuss the important of preparing financial plan.
1. To identify and propose the relevant sources of finance * The entrepreneur has to identify the relevant sources of finance as well as the amount that can be secured from each source. By...
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