Chapter 5 business notes:
What is entrepreneurship and intrapreneurship?
Entrepreneurship?
Person who combines the 3 factors of production (capital, labour and raw material)
to start a new business
Sees opportunity in market to start a new business
Will operate at top level management
Intrapreneurship:
Insider entrepreneur
Works inside the business and uses the qualities to transform innovative ideas into
profit
Does not have to operate at top level management
Will implement profitable ideas to their manager
13 characteristics of an entrepreneur:
1. Being able to identify and opportunity with potential, and to pressure the
opportunity even if it is risky. Take risks
2. Understand the target market in order to take risks
3. Needs to know the customers LSM, needs and to be willing to develop change to
satisfy the customers
4. Anticipate market trends
5. Commitment and perseverance
6. Creativity and innovation
7. Prepare and implement a plan
8. Execute a plan
9. Leadership qualities
10. Evaluate achievements and progress
11. Make quick decisions
12. Ability to have clear communication
13. Personally motivated
Leadership vs management:
Leader:
Has expertise to make people aware of the advantage of pursuing a certain course of
action, thereby creating a desire in people to follow them to achieve a common goal
Manager:
An appointed position of authority which enables them to insist on people doing in
there instructs.
Needs to be a leader as well
, Management styles:
Style Advantage Disadvantage
Democratic Ensures “buy-in” and May lead to slower decisions
commitment from people making when the manager
involved in the process. participations from all.
Autocratic It can be used to restore Employees often have a low
discipline or gain back lost morale as they feel
authority. undervalued by the manager.
Laissez-faire Employees are challenged to Even though the manager
take extra responsibilities and doesn’t interfere, he is still
challenges. ultimately responsible for the
job being done.
Transactional In our tough economic times, As soon as employees regard
employees are only too keen the reward is insufficient, they
to work for a little “extra”. become demotivated which
often results in labour unrest.
Transformational Employees are mentored and Not all leaders can be
trained to develop their own transformational leaders.
leadership ability.
Situational A manager can be a better Employees can get confused if
leader by adapting to the the manager interchanges his
situation and responding to style too often.
employees needs.
Motivational factors:
Advantages of a motivated work force:
Provide good customer service
Low levels of absenteeism
Motivated work force
Happy workers / stay positive
Positive impact on the business
Monetary factors to motivate employees:
Salary increases
Performance bonus, profit sharing, commission basis
Paid holidays such as trips.
What is entrepreneurship and intrapreneurship?
Entrepreneurship?
Person who combines the 3 factors of production (capital, labour and raw material)
to start a new business
Sees opportunity in market to start a new business
Will operate at top level management
Intrapreneurship:
Insider entrepreneur
Works inside the business and uses the qualities to transform innovative ideas into
profit
Does not have to operate at top level management
Will implement profitable ideas to their manager
13 characteristics of an entrepreneur:
1. Being able to identify and opportunity with potential, and to pressure the
opportunity even if it is risky. Take risks
2. Understand the target market in order to take risks
3. Needs to know the customers LSM, needs and to be willing to develop change to
satisfy the customers
4. Anticipate market trends
5. Commitment and perseverance
6. Creativity and innovation
7. Prepare and implement a plan
8. Execute a plan
9. Leadership qualities
10. Evaluate achievements and progress
11. Make quick decisions
12. Ability to have clear communication
13. Personally motivated
Leadership vs management:
Leader:
Has expertise to make people aware of the advantage of pursuing a certain course of
action, thereby creating a desire in people to follow them to achieve a common goal
Manager:
An appointed position of authority which enables them to insist on people doing in
there instructs.
Needs to be a leader as well
, Management styles:
Style Advantage Disadvantage
Democratic Ensures “buy-in” and May lead to slower decisions
commitment from people making when the manager
involved in the process. participations from all.
Autocratic It can be used to restore Employees often have a low
discipline or gain back lost morale as they feel
authority. undervalued by the manager.
Laissez-faire Employees are challenged to Even though the manager
take extra responsibilities and doesn’t interfere, he is still
challenges. ultimately responsible for the
job being done.
Transactional In our tough economic times, As soon as employees regard
employees are only too keen the reward is insufficient, they
to work for a little “extra”. become demotivated which
often results in labour unrest.
Transformational Employees are mentored and Not all leaders can be
trained to develop their own transformational leaders.
leadership ability.
Situational A manager can be a better Employees can get confused if
leader by adapting to the the manager interchanges his
situation and responding to style too often.
employees needs.
Motivational factors:
Advantages of a motivated work force:
Provide good customer service
Low levels of absenteeism
Motivated work force
Happy workers / stay positive
Positive impact on the business
Monetary factors to motivate employees:
Salary increases
Performance bonus, profit sharing, commission basis
Paid holidays such as trips.
