Cat One Entrepreneurship

22/02379 - Alfred
CAT 1: DCU 005
a) 5 TYPES OF ENTREPRENEURSHIP:
b) ELEMENTS OF A BUSINESS PLAN:
c) STEPS IN A GUIDE OF CREATING EFFECTIVE ENTREPRENEURS:
QUESTION A)
 Small Business Entrepreneurship: This type of entrepreneurship consists of entrepreneurs who

start and incorporate small businesses. They differ from other small business owners because
they rely on a wider set of skills to run their businesses.
 Investor Entrepreneurship: This type of entrepreneurship is more complimentary than distinct.
It is characterized by entrepreneurs who provide financial aid to upcoming businesses, but do
not participate in the daily running of said businesses.
 Technology Entrepreneurship: This type of entrepreneurship applies scientific innovations to
solve business problems. The main aim is solving customer problems. The entrepreneurs are
characterized by passion and belief in the inherent value of their product.
 Online entrepreneurship: This type of entrepreneurship is characterized by starting and
operating business activities using online locations rather than physical premises. In the
contemporary global market, online entrepreneurs have a wider variety of business models
which they can apply when providing goods and services to their consumers, as opposed to
other types of entrepreneurs.
 Internal entrepreneurship: This is a special type of entrepreneurship that allows employees to
act like entrepreneurs within an organization. They are largely involved in the internal
processes of a business and their main function is to innovate ideas that will result in improved
efficiency and effectiveness of the final product. It is popularly called intrapreneurship.
QUESTION B)
 Executive Summary: This segment includes a company’s mission statement (phrase of

purpose), information on all internal stakeholders (leaders, employees, board of directors &
investors), company operations and online locations/physical premises.
 Products and Services: Products and services offered will be outlined here. More information
such as pricing, product lifespan and benefits to the consumer may be included. In addition to
that, this element may contain rights to exclusion (patents), proprietary technology and
processes of production and manufacturing.
 Market Analysis: This section states the company’s competitors, how it fits in the industry as
well as competitive advantages/strengths and weaknesses. It describes expected consumer
demand and ease or difficulty to take/make a percentage of sales from the existing market.
 Marketing Strategy: This section explains the company’s value proposition (how it will attract
and retain customers as well as how it intends to reach the consumer), channels of
distribution, marketing campaign plans and media to be used by the stated campaigns.
 Financial planning: This section details a company’s financial goals and the strategies to
achieve them, as well as projections, starting capital for start-ups and financial statements for
established businesses. Potential investors and current financial position may also be included.
 Budget: This component details projected expenditures on staffing, development,
manufacturing, marketing, and any other contingencies.
QUESTION C)
 Discovery/Identification of an idea: The first step is coming up with a new idea or spotting an
unexploited one (market gap). At this stage, the entrepreneur looks out for inputs from other
people before deciding whether the idea is viable. In general, it involves a superficial
(shallow/less detailed) analysis on the identified idea.
 Evaluation: The second step is to conduct a careful and critical analysis on the identified
business idea. The entrepreneur, before venturing into a given line, must question whether the
business is worth investing in, whether or not it will attract and retain customers, if he/she has
any competitive advantages to make use of and their ability to cope with associated
risks/contingencies.
 Development of a plan: The third step is creation of a business plan to indicate the goals and
methods to be used to achieve stated goals. This is especially a key step for start-ups, because it
enables the entrepreneur to determine if his/her idea is viable enough to convince financiers to
invest.
 Obtaining resources: The fourth step involves determining the source/origin of resources
required to implement the developed plan. Here, the entrepreneur recognizes the possible
sources of finance and attempts to find investors who will raise the needed funds to enable
him/her venture into business.
 Managing the company: The fifth step, which only occurs after funds have been raised, entails
hiring human resource and development of a management structure. The selected structure
will be assigned to resolve operational problems if they occur.
 Harvesting: The sixth and final process is harvesting. At this stage, the entrepreneur makes a
comparison of the initially perceived results with the actual performance of the business. If the
management structure was effective, the business performance will in turn be good. Depending
on the performance, business security (expense reduction) or extension (rebranding, price
discounting and seeking new markets) is initiated accordingly.

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22/02379 - Alfred

CAT 1: DCU 005

 Small Business Entrepreneurship: This type of entrepreneurship consists of entrepreneurs who

 Executive Summary: This segment includes a company’s mission statement (phrase of

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