1.3 Enterprise And Business Growth

Question 1

What is an entrepreneur?

Answer 1

A person who organizes, operates, and takes the risk for a new business venture.

Question 2

What is a business plan?

Answer 2

A document containing the business objectives and important details about the operations, finance & owners of the new business.

Question 3

What do entrepreneurs do?

Answer 3

Organize & coordinate resources
Make business decisions to determine the success or failure of a business
Take personal, financial or professional risks

Question 4

What are the advantages of being an entrepreneur?

Answer 4

Independence
Uses own ideas
Could be profitable
Uses own interests and skills

Question 5

What are the disadvantages d being an entrepreneur?

Answer 5

The business could fail
Own capital might be lost
Lack of experience
Opportunity cost.

Question 6

What are the main characteristics of a successful entrepreneur?

Answer 6

Hard working
Risk taker
Creative
Optimistic
Confident
Innovative
Independent
Good communicator

Question 7

What are the elements of a business plan?

Answer 7

The business idea
Business aims and objectives
Target market
Forecast revenue
Forecast costs
Forecast profits
Marketing mix
Cashflownforecast
Sources of finance
Business location

Question 8

How does a business plan helps entrepenecrs?

Answer 8

Reduces risk of failure assessing future problems
Helps obtain a finance as potential problems and successes are known
Provides direction by setting objectives

Question 9

How does the government support business start-ups?

Answer 9

Financially - low interest loans & grants
Training - advice & grants for training
Enterprise zones - low cost premises (low rent) and university research facilities