1.5.1 Role of an entrepreneur

Question 1

Entrepreneur definition

Answer 1

An individual who takes a risk to organise resources to produce a product or service

Question 2

How does a business idea come about?

Answer 2

1. Spotting an opportunity
2. Developing new technology
3. Finding new ways to do things
4. Taking advantage of a gap in the market
5. Adapting an existing product

Question 3

Setting up a business:

Answer 3

1. Organise factors of production- buy or lease?
2. Give instructions
3. Make arrangements- finance, suppliers, markets
4. Set up system
5. Make all the key decisions
6. Take risks

Question 3

Setting up a business:

Answer 3

1. Organise factors of production- buy or lease?
2. Give instructions
3. Make arrangements- finance, suppliers, markets
4. Set up system
5. Make all the key decisions
6. Take risks

Question 4

Entrepreneurs run and expand their business. What do they need to consider as the business expands:

Answer 4

1. Financial management
2. Administration
3. Marketing
4. Purchasing
5. Managing people
6. Production

Question 5

Intrapreneurship definition

Answer 5

An employee of a business who uses entrepreneurial skills to find and develop initiatives that will financially benefit the business

Question 6

Intrapreneurship v entrepreneurship

Answer 6

Entrepreneurship: 
- Entrepreneurial activity by entrepreneur
- rewards go to entrepreneur
- Risk taken by entrepreneur
Intrapreneurship: 
- entrepreneurial activity by employees and managers 
- rewards go to company 
- risk taken by company

Question 7

Barriers to entrepreneurship

Answer 7

1. Entrepreneurial capacity/lack of know how
2. Access to finance
3. Tear of failure/lack of confidence
4. Inequality/ bias

Entrepreneurs need to overcome these barriers to be successful

Question 8

Anticipating risk and uncertainty in a business environment

Answer 8

Risk can be planned for- probabilities of outcomes are known or sat least understood or considered.
Uncertainty is caused by unexpected, often external factors outside the entrepreneurs control, even though they are sometimes predictable e.g. Environmental (tsunamis),changes in interest/exchange rates…