You are on page 1of 4

FACULTY OF ENGINEERING

KFS 3122

ENTREPRENEURSHIP

ASSIGNMENT 1

LECTURER: EN.RODZI

NATASHA BINTI MOHD.SALIHIN

4143003091

1. In order of importance, list your own list of entrepreneurial competencies and justify
each order
Opportunity-Seeking & Initiative
Entrepreneurs seek opportunities and take the initiative to transform them into

business situations.
Persistence
When most people tend to abandon an activity, successful entrepreneurs stick
with it and make it a success.
Fulfilling of Commitments
Entrepreneurs keep their promises, no matter how great the personal sacrifice.
Demand for Quality & Efficiency
Entrepreneurs try to do something better, faster or cheaper.
Calculated Risk-Taking
Taking calculated risks is one of the primary concepts in entrepreneurship.
Goal-Setting
This is the most important competency because none of the rest will function
without it. Entrepreneurs set goals and objectives which are meaningful and

challenging.
Information-Seeking
Entrepreneurs gather information about their clients, suppliers, technology and

opportunities.
Systematic Planning & Monitoring
Systematic behaviour means acting in a logical way. Planning is deciding what

to do. Monitoring means checking.


Persuasion & Networking
Entrepreneurs influence other people to follow them or do something for them.
Independence & Self-Confidence
Entrepreneurs have a quiet self-assurance in their capability or potential to do
something.

2. Define business risk, give examples


Business risk define is the possibility that a company would have a lower or less than
anticipated profits, or that it will experience a loss rather than gaining profit. Usually
it is influenced by numerous factors, including sales volume, per-unit price, input
costs, competition, overall economic climate and government regulations. Examples
of business main risk;

Strategic Risk
Its the risk that your companys strategy becomes less effective and your
company struggles to reach its goals as a result. It could be due to
technological changes, a powerful new competitor entering the market, shifts
in customer demand, spikes in the costs of raw materials, or any number of

other large-scale changes.


Compliance Risk
Its the act of complying with all the necessary laws and regulations that apply
to your business. Laws change through time to time, and there would always a
risk that we would face additional regulations in the future. And as our own
business expands, we might find ourselves needing to comply with new rules
that didnt apply to us before. For example food safety rules, labelling rules,

and a whole lot more.


Operational Risk
Operational risk refers to an unexpected failure in your companys day-to-day
operations. It could be a technical failure, like a server outage, or it could be
caused by your people or processes. For example, consider the risk that one of
your employees writes the wrong amount on a check, paying out RM200,000
instead of RM20,000 from your account. Thats a people failure, but can
also be consider as a process failure. It could have been prevented by having
a more secure payment process in the future.

3. When entrepreneur seek financing, financial institutions often require a business plan
before making decision, why?
Financial institution is well known as the key source of fund for new as well as
expanding businesses. Mainly to start up a business we would need it to secure fund
for operating and start-up capital whereas for the established businesses they often
need money to do things such as buy new equipment or property, or because of
market downturns. In approaching the financial institution for loan or other forms of
financial assistance, an entrepreneur often require to explain the purposed usage and
how repayment will be made through the intended business. Thus to meet this
requirement, the entrepreneur is expected to submit a Business Plan to help the

financial institution evaluate the viability of the proposed project and decide whether
it will finance the project.

You might also like