1.5.1 Role of an entrepreneur 👩💼 Flashcards
What are the four roles of the entrepreneur Whilst creating and setting up a business
innovators - have to make money from the business ideas for marketing adventures of market research - may be adapted to other businesses
organising- production may be able to hire resources give instructions make
key decisions - wages and have to be
risk-takers the money they put in the business may feel however if they’re successful they are rewarded with profit
What is an entrepreneur?
People have a business idea and they want to make money
What is 2 factors that occur while setting up a business?
Risk and rewards for entrepreneurs-
Risk of business failure - getting back to normal little job security opportunity cost
however may get the job satisfaction
Entrepreneur and business ideas
What are the four reasons why people want to become entrepreneurs?
Business experience - May come from existing jobs- more risk free - already have knowledge of market
personal experience- May route from a hobby or a job
Skills - May want to broaden skills
lifestyle choices- Want to have more freedom around work life
What are the six stages of setting up a business?
Idea
research 🧐- viability of business idea needs to be researched - carrying out market research analysing the competitors - will idea 💡 work?
planning- need a business plan
financing- need a viable source of finance to fund suppliers and place of operations
Location -dependent on nature of business where target market is likely to be reached or legal factors - planning permission
resources- need to find suppliers that can provide working capital and raw materials
launch -exciting times - need to ease themselves into the market - and get a good reputation discounts for the public relations
What is the future success on of the business dependant on?
on the quality of work undertaken during the setting up process
What are the six activities needed to needed to help with running and expanding developing a business?
Financial management -Business need money to fund operations require producing cash flow forecast
Administration- Need of accurate recordkeeping
Marketing - depended on nature of the business whether marketing online or in specialist magazines
also needs develop a relationship with customers
however business develops and they need to go out more market research - new ways to promote large investment needed
purchasing- have to buy resources such as raw materials and resources for lowest price - dev relationships with suppliers are dropping her to develop negotiation skills - reduce costs
Managing people - More time invested in recruiting people and developing skills
production - Ensure that there is consistency and maintain safety within production becoming more cost-effective

What is an intrapreneur?
Employees that use entrapreneurial skills without having to risk money to find and develop benefits for their employer
Why is intrapreneurship encouraged?
spirit of entrepreneurship to be embedded in business culture- allowing the company to grow evolve than become stagnant
When are intrapreneurs usually employed?
Product development
What are the positives of intrapreneurs?
- Innovative can get a competitive of edge and develop new ideas
- Meet self-actualisation - given opportunity to become best for potential versions - Maslow’s hierarchy of needs motivate others and increases productivity
- Prizes can be won for amazing invention holds prestige PR and enhance image of business help promote business
- Allows to have opportunity without risk of failure helps develop skills and job satisfaction
What are the eight barriers to entrepreneurship?
Lack of finance- New entrepreneurs may fail to have finance to fund a start-up businesses- banks are more reluctant to land due to high failure chances
lack of entrapreneurial capacity - Need to be equipped with skills in characteristics
becoming an employer -Large amount of responsibility have to be responsible for several things employee may be unreliable - discourage
legal barriers- Divert focus of entrepreneur-high cost to meet legislation - from making money
lack of ideas -Lack of originality no USP in - competitive markets
fear of failing - Prevents entrepreneur from taking risks that may lead to success- I think start-ups have a high risks
aversion to risk -Less likely to take risks due to psychological failure
corrupted environment-Politically unstable unclear regulations
Have to develop friendly ties with government officials to smooth business operations
what does the business to have control over?
Risk they make the decision to take it
how does the business anticipate risk within the business environment
They understand the nature of the risk- invested their own money 💵 - sacrificed job security if failure is induced
What measures can Entrepreneurs take to reduce the risk? Anticipating risk - what to do they know? 
Before launching brand new product nationally- launch 🚀 in smaller market
quantitative techniques - decision trees quantify possible outcomes
know the greater the risk the greater the reward forever so could be the losses
