1.5.1 Role Of An Entrepreneur

Question 1

What is an entrepreneur?

Answer 1

An entrepreneur is a person who sets up a business and takes risks in the hope of a profit or reward.

Question 2

What are the 4 steps in setting up a business?

Answer 2

Step 1) Market research, find out what the customer wants.
Step 2) Start small at a market stall or similar context if possible.
Step 3) Draw up a business plan.
Step 4) Grow the business.

Question 3

What are the 3 main roles of an entrepreneur in a business?

Answer 3

-Starting a business
-Running a business
-Expanding a business

Question 4

What is Intrapreneurship?

Answer 4

An employee within a larger business who thinks like an entrepreneur.

Question 5

What are the barriers to entrepreneurship?

Answer 5

1.) Entrepreneurial capacity
2.) Access to finance
3.) Lack of training/ knowhow
4.) Fear of failure
5.) Lack of confidence

Question 6

What is risk?

Answer 6

This is the possibility that the business will have a lower than expected profit or a loss.

Question 7

What are the 2 main risks for an entrepreneur?

Answer 7

-Financial risks
-Lack of security (may have left their job)

Question 8

Define uncertainty

Answer 8

Uncertainty is when businesses are unable to predict external shocks or future events.

Question 9

What are some uncertainty’s a business may face

Answer 9

1.) Natural disasters (Tsunami, Toyota had to change production methods from J-I-T)

2.) Health scares (eggs, salmonella)

3.) Price shocks for commodities

4.) Interest rates

5.) Exchange rates

6.) Scandals