Question Two (2)
Many governments throughout the Caribbean region have been encouraging persons to become
entrepreneurs.
(a) What do you understand from the term ‘entrepreneur’?
An entrepreneur is someone who exercises initiative by organizing a venture to take
benefit of an opportunity and, as the decisionmaker, decides what, how, and how much of
a good or service will be produced.
He/ she supplies risk capital as a risk taker, and monitors and controls the business
activities. The entrepreneur is usually a sole proprietor, a partner, or the one who owns
the majority of shares in an incorporated venture.
(b) Suggest THREE reasons why entrepreneurship is being encouraged in your country.
THREE reasons why entrepreneurship is being encouraged in my country are:
1) Create Jobs- Entrepreneurs come with ideas and these ideas take the shape of a
venture, and when the venture gets materialized, it creates jobs and positions for
others. Thus, as a result of the efforts of the entrepreneurs more jobs are created,
hence more entrepreneurs in a society means more jobs.
2) Economic Growth- New products and services created by entrepreneurs can
produce a cascading effect, where it stimulates related businesses or sectors that
need to support the new venture, furthering economic development.
3) Creates a social change- Through offering unique goods and services,
entrepreneurs break away from tradition and reduce dependence on obsolete
systems and technologies. This results in an improved quality of life, improved
morale, and greater economic freedom.
(c) List THREE characteristics of a successful entrepreneur.
THREE characteristics of a successful entrepreneur are:
1) Creativity- One facet of creativity is being able to make connections between
seemingly unrelated events or situations. Entrepreneurs often come up with
solutions which are the synthesis of other items. They will repurpose products to
market them to new industries.
2) Strong work ethic- The successful entrepreneur will often be the first person to
arrive at the office and the last one to leave. They will come in on their days off to
make sure that an outcome meets their expectations. Their mind is constantly on
their work, whether they are in or out of the workplace.
3) Determination- Entrepreneurs are not thwarted by their defeats. They look at
defeat as an opportunity for success. They are determined to make all of their
endeavors succeed, so will try and try again until it does. Successful entrepreneurs
do not believe that something cannot be done.
(d) Discuss TWO problems an entrepreneur may encounter.
TWO problems an entrepreneur may encounter are:
1) Recruiting: Needing to hire more people is a good problem for small business owners to
have, as it likely indicates they're having trouble keeping up with demand. It could also
mean they need an expert in a certain field, in which case they're probably worried about
their new hire costing a fortune.
Running a small business comes with plenty of challenges, and that's part of what
makes it such an exciting experience. Still, there's no need to make it more difficult than it
has to be. Look to these solutions to give you a much-needed respite from the slew of
issues you have to deal with on a daily basis.
2) Decision-making: New entrepreneurs are forced to make hundreds of decisions a day, from
big, company-impacting decisions, to tiny, hour-affecting ones. Decision fatigue is a real
phenomenon, and most new entrepreneurs will experience it if they aren’t prepared for the
new level of stress.
If you can work your way past these major obstacles, you’ll be well on your way to
establishing yourself as an entrepreneur. That isn’t to say they won’t continue to nag at
you as the years go on, or that new and varied challenges won’t arise to take their place,
but you’ll be prepared to handle yourself in those most volatile and impactful first few
months -- and that puts you far ahead of the competition.
(e) Outline how an entrepreneur may overcome anyone of the problems discussed in (d)
above.
1) Recruiting:
Solution- Be exclusive. Far too many helps wanted ads are incredibly vague in terms of what
qualifications candidates must have, what the job duties are, what days and hours will be
worked, and what wages and benefits will be paid. You can save yourself a ton of time by
pre-qualifying candidates through exclusive help wanted ads that are ultra-specific in what it
takes to be hired at your firm, as well as what the day-to-day work entails. Approach your
employee hunt the same way you would approach a customer-centric marketing campaign:
through excellent targeting.
Once you have a pool of prospects, arrange for a “walking interview” in which you take
candidates on a tour of their working environments. Ask questions relevant to the job and to
candidates’ experiences, expectations, dedication, and long-term goals. Don’t act like an
overlord determining which minion gets to live another day; rather, behave as though you’re
seeking a partner to help you operate and grow your business.
Take the time to seek real references: not the neighbor lady your candidates grew up
with, but people who can honestly attest to their work ethic and potential. Once you’ve
picked a candidate and before you’ve made a job offer, ask them specifically what it will take
to keep them employed with you for the long haul. Tell them to be honest with their
expectations. Provided they do a good job for you, you’ll know what kind of rewards they’re
seeking, and you can make adjustments accordingly.
(f) List FOUR ways in which the government may assist entrepreneurs.
FOUR ways in which the government may assist entrepreneurs are:
Through Grants, Loans and Disbursements.
Lower Interest Rates
Give Tax Incentives
Friendly Trade Policies
