1.5 entreprenaurs Flashcards
What is an entrepreneur?
An entrepreneur is a person who is willing and able to create a new business idea or invention and takes risks in pursuing success
What are some roles of an entrepreneur ?
- coordinate resources
- make decisions
- take risks
What is intrepreneurship ?
Intrapreneurship refers to the practice of promoting entrepreneurial thinking and behaviour within an existing business
What is the benefits of intrapreneurship?
- tap into creative potential
- create a culture that generates ownership and engagement
- offer incentives and rewards to successful products
What are some barriers to entrepreneurship?
Entrepreneurial capacity
- Access to finance
- Lack of training
- Fear of failure
What is the difference between risk and uncertainty?
Something an entrepreneur can plan for - risk
Caused by unexpected factors outside entrepreneurs control - uncertainty
What are the skills of an entreprenaur ?
Communication
Team working
Problem solving
Numeracy
What are the characteristics of an entrepreneur ?
Creativity
Hard working
Resilience
Initiative
What are the financial reasons for setting up a business?
profit maximisation
profit satisficing
What are non financial reasons for setting up a business?
Ethical stance
Social entrepreneurship
Independence
Home working
What are some business objectives?
Sales maximisation
Market Share
Cost efficiency
Employee Welfare
Customer Satisfaction
Social objectives
What is a sole trader ?
A business that has a single owner
What is the advantages and disadvantages of being a sole trader?
Easy and inexpensive to set up
The owner has complete control over the business
All profits belong to the owner
Simple tax arrangements
Unlimited liability, meaning the owner is personally responsible for any debts the business incurs
Limited access to finance and capital
Limited skill sets
What is a partnership?
Two or more people join together to form a business
What is the advantages and disadvantages of being a partnership?
Easy to set up and inexpensive
Shared responsibilities and decision-making
More skills and knowledge are available
Increased access to finance and capital
Unlimited liability
Potential for disputes between partners
Profits are often shared equally, regardless of the contribution
Difficult to transfer ownership
What is a private ltd company?
The ownership of the business is broken down into a specified number of shares
Advantages and disadvantages of a private
ltd?
Limited liability, meaning the owners are not personally responsible for the company’s debts
Access to greater finance and capital
Easier to transfer ownership
Can have a professional image and reputation
More expensive and time-consuming to set up
More complex legal requirements and regulations than sole traders
Annual financial reporting and auditing are required
Shareholders have little control over the company as the founder usually imposes their agenda
What is franchising ?
Franchising is a business model where an individual (franchisee) buys the rights to operate a business model, branding, and support from a larger company (franchisor) in exchange for an initial lump sum plus ongoing fees
The franchisee operates the business under the
franchisor’s established system and receives training, marketing support, and ongoing assistance
What is social enterprise?
A social enterprise is a business that has the primary purpose to create social or environmental impact (in addition to generating profits)
Profits are usually reinvested back into the business or used to create positive social change or address an environmental issue
What is a lifestyle business?
Lifestyle businesses are typically small, owner-operated businesses that prioritise a specific lifestyle or personal interest of the owner over profits or growth
What is a public limited company (PLC)
Seek to raise capital by selling shares to public on stock exchange
What are the benefits of becoming a PLC ?
access to capital
shared risks
increased liquidity
extended decision making
public profile
What is an opportunity cost?
Opportunity cost is the loss of the next best alternative when making a decision
What is a trade off?
A trade-off occurs when two things cannot be fully achieved
Having more of one thing may mean having less of another
How do you transition from entrepreneur to leader?
Need to delegate
Trusts
Listening
Develop emotional intelligence
Open mind
Less reactive
