IIE Varsity College Business Management and Administration ICE Task 2 Chapter 2 Summary

VARSITY COLLEGE_BUSINESS
MANAGEMENT_BUSINESS
MANAGEMENT &
ADMINISTRATION CHAPTER 2
SUMMARY_2023


Table of Contents
DISCUSSING THE DIFFERENT TYPES AND CHARACTERISTICS OF ENTREPRENEURS.................................................1
DISCUSSING BOTH THE ADVANTAGES AND DISADVANTAGES OF BUYING A FRANCHISE AND BUYING AN
EXISTING BUSINESS..................................................................................................................................................2
THE KEY CHARACTERISTICS OF A SWOT ANALYSIS..................................................................................................3
ELEMENTS OF A BUSINESS PLAN..............................................................................................................................5
ADVANTAGES AND DISADVANTAGES OF A SOLE PROPRIETOR AND A PARTNERSHIP............................................5
DISCUSSING THE THREE GENERIC COMPETITIVE STRATEGIES.................................................................................6
DISCUSSING THREE OTHER FORMS OF AN ENTERPRISE..........................................................................................7
REFERENCE LIST........................................................................................................................................................7

, DISCUSSING THE DIFFERENT TYPES AND CHARACTERISTICS OF ENTREPRENEURS

A simple example of entrepreneurs is individuals who create jobs and generate wealth
using various skills and knowledge when establishing a new business or idea
(Baumgardt, Dalla Pria, Du Plessis, Kamala, McKinlay, Paul, Porthen, Renard & Van
Rooyen, 2017). The characteristics often compared with successful entrepreneurs are as
follows:

- Perseverance (Commitment and Determination): To have a successful business you
have to put your all in as an entrepreneur. To keep moving forward and to sacrifice
your own time for the business is a great skill and ability of a successful
entrepreneur.
- Leadership: Being the individual to start the business, you would need the ability to
teach, coach, and build individuals and teams on a high level.
- Opportunity-driven: Having the skill of building a business that produces a product
that adds value to the market and applies to the customer.
- Risk-tolerant: When using the term risk with successful entrepreneurs. It does not
only mean that the individual takes risks for the business to potentially succeed even
more than it already is. Averting the strategy or plan, due to it having a more severe
outcome is also an ability of a successful entrepreneur.
- Creativity and adaptability: Entrepreneurs are creative thinkers with a growth
mindset. Having a growth mindset means that they are open-minded and can adapt
to new changes.
- Self-motivated: Entrepreneurs will set high goals and will do everything they can to
achieve them while displaying an optimistic mindset.



The two different types of entrepreneurs are opportunity entrepreneurs and necessity
entrepreneurs. One of the biggest differences between these two types is the motivational
drivers each type needs (Baumgradt et al., 2017).

- Opportunity Entrepreneurs: These are individuals who saw an opportunity to start a
business in a sector where they have identified an exploit. Due to this, they have a
long-term strategic plan. Which in turn assists in being more prepared and having
more knowledge.
- Necessity Entrepreneurs: When a business is set and created due to a need in the
area/country or world, you would have a necessity entrepreneur. The motivational
drive would then be different when compared to an opportunity entrepreneur. A
necessity entrepreneur has a survival mindset due to relying on the survival of the
business to secure their own wealth and capital success.



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