1.3c Entrepreneur Hotel Choc

Question 1

What is an entrepreneur?

Answer 1

An entrepreneur is someone who sets up a business. This involves taking financial risks in order to make a profit.

Question 2

Why do people become entrepreneurs?

Answer 2

1. Money
2. They have an original idea or want to
   adapt a current idea
3. To show off their talent
4. Having no boss gives freedom, flexibility & control
5. To give back to the community
6. To help others
7. They see the success of other
   people/companies

Question 3

Why do start-ups fail?

Answer 3

1. They start their business for the wrong reasons such as to make money rather than having actual passion for the business
2. Poor management of resources
3. Insufficient capital to keep funding the business
4. Poor location with low footfall
5. Lack of planning
6. Over expansion
7. No/Poor website and lack of keeping up with technology and innovation

Question 4

How can an entrepreneur make good business decisions?

Answer 4

They need to have a long term vision of the business of how the product and business will develop and succeed as well as a short term vision too. They need to know the market well so they can the know customer problems and how to solve them.

Question 5

How would the list of resources change as the business grows?

Answer 5

• New sources of finance to cover larger costs
• More focused towards the future
• More staff
• Developing more products
• Focused to opening more branches

Question 6

How important is an entrepreneur in the success of a start-up?

Answer 6

They are very important as their decision are what decides if a start-up will succeed or fail. Their ideas, resources and presentation of the business is key in how they will get funding. They need to have a good knowledge of the business in order to appropriately take risks to grow the business.

Question 7

What do an entrepreneur’s roles include?

Answer 7

Their roles include organising resources, making business decisions and taking risks.

Question 8

What should a good entrepreneur be able to do?

Answer 8

1. Have energy
2. Visualise their goals
3. Focus on customer needs
4. Learn from mistakes
5. Takes risks and opportunities
6. Motivate people

Question 9

What is a serial entrepreneur and who is an example of one?

Answer 9

A serial entrepreneur constantly starts new enterprises. An example of one is Richard Branson as he has launched many businesses including a record label, an airline and a space tourism company.

Question 10

How can an entrepreneur minimise risks?

Answer 10

They can minimise risks by having a good knowledge of the market and gathering evidence through market research.