1.4 - Entrepreneurs and Leaders Flashcards
Theme 1 - Marketing and People
Define an entrepreneur
is a person who is wiling to take a risk in setting up and growing their own business
Skills and characteristics of entrepreneurs
- innovate and invent
- take risk
- organise
- make decisions
Reasons why an entrepreneur may decide to set up their own business
- business experience: some start a new business using the experience of their current job
- lifestyle choice: some decide that they would like to be their own boss and work on their own terms
- personal experience: may be based on a hobby or interest
- spotting a gap: seeing an opportunity and realising that they could fulfil this need
List 4 functions of an entrepreneur
- Financial management: raising capital, managing costs, profitability and cash flow
- Administration: insurance, tax, legal set up and business records
- Managing people: recruitment, training, motivation and leading people
- Marketing: research, promotion and branding
Define intrapreneurship
refers to employees within a business who have the freedom and opportunity to develop their own ideas and use their creativity to innovate
Ways entrepreneurs can deal with risk and uncertainty
- carrying out detailed research
- producing detailed plans
- analysing external influences
- creating contingency plans
List the barriers of success a person may face when setting up a business
- lack of finance
- lack of entrepreneurial skills
- lack of ideas
- competition from larger, established businesses
- legal barriers
- not willing to take a risk
List 4 characteristics an entrepreneur may have
- self confidence
- self determination
- initiative
- commitment
List 4 skills an entrepreneur may have
- organisation
- financial management
- managing and communicating with people
- negotiating
Name 2 financial motives for setting up your own business
- Profit maximisation - to generate as much wealth as possible
- Profit satisfying - to generate enough income to live a comfortable lifestyle
Name 3 non-financial motives for setting up your own business
- ethical stance - running a business to support their ethical principles
- social enterprise - running a business for a social or environmental cause
- independence and home working - the control and flexibility of running their own business
Purpose of business objectives
- provide steps to achieve aims
- clarify the direction of the business
- measure success against targets
- motivate employees to achieve
List 4 financial objectives of a business
- survival
- profitability
- sales maximisation
- cost efficiency
List 4 non-financial objectives of a business
- customer satisfaction
- brand recognition
- employee welfare
- social objectives
Name the influences on business objectives
- size
- sector
- market
- ownership
- owner
role of an entrepreneur
- creating and setting up a business
- running and expanding the business
- innovating within the business
- anticipating risk and uncertainty
Limited liability
personal assets are protected
unlimited liability
personal assets are vulnerable
Forms of businesses that have unlimited liability
- sole trader
- partnerships
sole trader
one person on their own running their business that has no separate legal identity
partnerships
more than one person running the business and sharing the work and risk
forms of businesses that have limited liability
- private limited company
- public limited company
private limited company
a registered company under private ownership
public limited company
a registered company that has been floated on the stock market
franchises
where a franchisor allows a franchise to run an outlet or outlet of their business
social enterprise
a business that exists for a social or ethical purpose
opportunity cost
what is sacrificed when a decision is a made
trade off
where the more you have of one thing, the less you can have for the other thing
reasons why an entrepreneur would move to a leader due to sales and growth
- may need help
- may need new skills
- may have to give up some control
