1.5.1 Role Of An Entrepreneur Flashcards
What is an entrepreneur?
The individuals who spot business opportunities and then act in order to exploit the opportunity.
What are the main sources of business ideas?
Observation, Brain-storming, Thinking ahead, Personal/Business experience, Innovations.
Why is spotting an opportunity significant?
A business will only become viable if a market exists for it.
What do the typical sources of opportunity tend to be centered on?
Change in technology
Changes in society
Changes in the economy
Changes in the housing market
What are entrepreneurs likely to have to carry out (usually with a small budget), and why?
Market Research.
As it may throw up an important opportunity.
Cheap market research methods could include?
Walking around a local town
Spending time with other entrepreneurs
Discussions with friends
Producing a market map
What are 4 habits of successful entrepreneurs in the way they run their business?
Measure performance in an unbiased way (identify problems)
Have an eye for detail (getting the little things right)
Ability to step back from day-to-day issues
They love what they are doing (without this, there is no motivation)
Why can’t all businesses be suited to expansion?
Because some ideas and opportunities remain small-scale or localised.
Why is expansion vital to some entrepreneurs?
To prevent others from developing the idea/ ideas more successfully.
What are the 3 major problems to avoid as an entrepreneur considering expansion?
Over-estimating demand
Failing to raise sufficient finance
Not recruiting enough/or the right people
What is innovation within a business?
Entrepreneurs who are able to generate and develop new business ideas, roles are for them even in large firms
Creative and disruptive thinking that entrepreneurs have is sought after by large businesses
Innovation is a way of maintaining a competitive advantage
What is Intrapreneurship?
The name given to the encouragement of entrepreneurial behaviour within larger businesses e.g. Facebook (entrepreneurial behaviour within the setting of a large business).
What are the 3 barriers to entrepreneurship?
Funding
Gender bias
Lack of public sector support
Why may funding be a barrier to entrepreneurship?
Banks in UK remain less willing to lend to small business start-ups as they consider them relatively high-risk for relatively low return as they are often believed to be fairly unprofitable. Without lending, entrepreneurship could die down in the UK.
Why may gender bias be a barrier to entrepreneurship?
UK entrepreneurs are three times more likely to be male than female. The statistical mismatch between the population/market and people starting new businesses is likely to mean that entrepreneurial talent is going to waste.
