Chapter 3: entrepreneurs, managers

Chapter 3: entrepreneurs, managers and employees
I/ antrepreneur
• what is “entrepreneur”?
- entrepreneur is a term referring to a person who assumes the responsibility and the risk for a business operation with the expectation of making a profit. If the business succeeds, the entrepreneur reaps the reward of profits; if it fails, he or she takes the loss

• what should an entrepreneur do to get success in business?
1. he must know how to acquire productive resources, combine and use them efficiently
2. he must take advantage of business opportunities to create goods and services that customers hope to buy so as to create profit
• why do most people want to be an entrepreneur?
- being an “ intelligent” entrepreneur, a person can get enormous potential profit: if can entrepraneur can encourage his/her company to create products customers perceiver as valuable -> charge premium price -> high profit
• what are the drives that an entrepreneur follows?
1. intrinsic motivation -> need for achievements in career, need to create new and better things for themselves and for others to use, profit is just a buy-product of the drive
2. extrinsic montivation -> need for money and personal wealth
• what are some mistakes that an entrepreneur may make
1. overestimating the value of a new product potential customers
2. failing to realize the difficulty of reaching customers
3. underestimating the amount of cash needed to sustain a business until it is profitable
• what are characteristics of a good entrepreneur?
1. do what you enjoy
2. plan everything carefully and manage money wisely
3. remember it’s all about customer
4. utilize the advance of technology and know how to improve necessary skills
5. create a competitive advantage as well as building a postive business image
6. use the time logically
*antrepreneurship opportunities: commercial opportunities, occupational opportunities, organizational opportunities.
* commercial opportunities
- opportunities in production and trade, such as discrepancies in the price of materials, labors, or finished products in different cities or countries
- opportunities offered by advances in technologies and the growth of e-business -> new ways in making or supplying a product more cheaply
- opportunities arise when a company creates a new and improved product that better satisfies the customer needs -> can get first move advantage