1.5.1 Role Of An Entrepreneur ******

Question 1

What is an entrepreneur?

Answer 1

Person who sets up a business and takes risks in the hope of profit or reward

Question 2

What are the key roles of an entrepreneur?

Answer 2

1. Innovator
2. Organisation
3. Decision making
4. Risk taking

Question 3

What are the barriers to entrepreneurship?

Answer 3

1. Entrepreneurial capacity - lack of skills/knowledge
2. Access to finance - banks won’t lend due to historical data.
3. Fear of failure
4. Lack of training
5. Lack of confidence

Question 4

What is an intrapreneur?

Answer 4

Employees who use entrepreneurial skills, without having to risk their own money, to find and develop initiatives that will have financial benefits.

Question 5

How can an entrepreneur expand their business?

Answer 5

• open another location
• offer business as a franchise
• target other markets
• merge with another business

Question 6

Difference between risk and uncertainty?

Answer 6

Risk - possibility that the business will have lower than expected profit or loss

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