1.5 Entreprneurs and Leaders Flashcards
what is an entrepreneur
a person who sets up in a business taking on financial risk in the hope of profit
what are some of the Entrepreneurial motives and characteristics
Motivation
Resilience
risk Tolerance
Bision
Drive
Creativity
what is a intrepreneur
Someone from inside the business that also has the skills of an Entrepreneur but gives the business unique ideas
What are the disadvantages of an intrepreneur
That the idea could get stolen and then you don‘t get any credit for it
they get paid a fixed rate so if the Intrepreneur got a really good idea then they wouldn’t get paid more
What are the advantages of an intrepreneur
that they don’t have the same risks of losing money if they don’t come up with a unique idea
They can use all the businesses resources without having to personally pay for it
What is a motive for an entrepreneur?
Something that makes then want to make something or do better at something for example friends and family and money
What are examples of Financial motives?
profit maximisation and profit satisficing
What are examples of Non - Financial motives?
ethical stance, social entrepreneurship, independence and homeworking
What is a Business Objective?
is a target that gives direction to a business. They can be motivating and be used to pressure performance
What are SMART Targets
Specific
Measureable
Achievable
Realistic
Time based
How Entrepreneurs create and set up thier business?
- Identify a gap in the market
- Market Research
- Write a business plan
- Located how to finance the business
- Decide if wants to be sole trader or partnership
- raise money
What does an Entrepreneur do to Run and Develop their business
- needs to make they are updated with new laws
- continue with their market research
- set aims and objectives
- employ new staff
- come up with new strategies
How do Entrepreneurs ensure their business is innovative?
- take risks and make new ideas a reality
- Employ staff like Intrepreneurs who lead innovativity and create personal projects
What are some of the Overcoming Barriers to Entrepreneurship
- Having a lack of money -> can solve this by raising finance through investors or getting a loan from the bank
- very high start up costs
- lack of confidence -> can be solved by having a strong belief that their business will be successful and then this will communicate to others
- lack of training -> can be solved by an Entrepreneur trying to learn as much as they can before they launch the business,
How do Entrepreneurs Anticipate Risk and Uncertainty?
Some differ as depends on the situation but most entrepreneurs just take the risk because most of the time it can mean good things for the business
What are some characteristics that an entrepreneurs have?
- Someone with initiative
- Hard Working
- Creativity
- Self confidence
- a risk taker
- resilient
what are some specific skills that an entrepreneur needs?
- communication skills
- team working
- problem solving
- numeracy skills
- organisation skills
- IT skills
What are some financial motives for starting a business?
Profit Maximisation - making as much profit as possible
Profit Satisficing - means making enough profit but not pushing to maximise it.
What are some non financial motives for starting up a business
- Independence
- flexibility
- social problem - improve the quality of life
- motivated by ethical issues
- working from home
What skills does an entrepreneur need to develop into a leader
Delegate Responsibility - manage staff in a business and develop trust within individuals
Develop Emotional Intelligence - to identify and manage your own emotions and recognice other emotions and how to respond to them
Become Less Reactive - make decisions quickly, responsible for a large amount of people and their actions + consequences
What is a business aim?
a aim is a broad target or goal set out to the business over long term
What is a business objective?
a objective is a specific target or goal that is set out short term or medium term
give some examples of business aims and objectives
- survival - mainly for start up business to break even and cover all its costs with revenue
- Maximising Profit - is a long term aim to achieve a certain amount of profit each month
- Sales Maximisation
- Market Share
- Cost Efficiency
- Employee Welfare
- Customer Satisfactio
Name some different forms of business
- Sole Trader
- Partnership
What is a Sole Trader
a individual trading in their own name and they are self employed for example a plumber
Advantages - Have freedom, all the profit goes to them, less conplex, no legal costs for the Trader
Disadvantages - Risk, Time, limited skills, Vulnerable, Unlimited Liability
What is a Partnership?
most of the time develop from a sole trader and can be minimum of 2 and a maximum of 20
having more owners means that there is more money to be put into the business and also more idea/skills added.
however all partners have to agree on certain decisions within the business and the profits will need to be shared equaly between all the owners
What are the types of Limited Company?
- Private Limited (Ltd)
- Public Limited (PLC)
- Both types are owned by shareholders
What is a franchise?
is an agreement which allows an entrepreneur to use the business name, idea, model and reputation of an established business and in return has to pay main business inital fees and then ongoing payments
What is an Online Business?
are business that tarde through the internet and are relativly cheap and easy to set up because they have limited over heads and fixed costs
and are able to be run from anywhere
What is a lifestyle Business?
Is a business that focusses on profit statisfing and to maintain a desired lifestyle. The entreprenur is motivated by having flexibility in what they do and having a good balence of work and social life.
What is a Social Enterprise?
is a business that’s set up with a core aim to use its profits to benifit society
example: THE BIG ISSUE FOUNDATION
What is a Opportunity Cost?
the benifit that is given up in order to do something else
What is a Trade - Off
That one thing in the business has to be reduced or given up in order to increase or gain another
What is an example of a trade - of
- Design Mix
- Market Research
- Business Ownership
- Promotion
- Pricing Strategy
