1.5.1 Role Of An Entrepreneur

Question 1

Who is an entrepreneur?

Answer 1

• Businesses are usually started by an entrepreneur
• An entrepreneur as a person who is willing and able to create a new business idea or invention and take risks in pursuing success

Question 2

What do entrepreneurs do?

Answer 2

1. They organise resources
   - An entrepreneur must be able to gather and coordinate resources necessary to start and operate a business
2. They make business decisions.
   - Entrepreneurs must be able to make decision decisions that will determine the success or failure of their business
   - Making the wrong decision decisions can lead to wasted resources, loss opportunities, and ultimately business failure
3. They take risks.
   - entrepreneurship involves taking risks - financial, personal, or professional
   - They may also take risks by introducing new products or entering new markets
   - these risks and can pay off with great rewards, but they can also lead to failure and financial loss

Question 3

How do entrepreneurs run and develop an existing business?

Answer 3

• They do it by bringing a unique entrepreneurial spirit into the business which helps to drive it forward and expand

Question 4

How employees can demonstrate entrepreneurship within a business?

Answer 4

• Intrapreneurship refers to the practice of promoting entrepreneurial thinking and behaviour within an existing business
• It involves empowering employees to think and act like entrepreneurs
• The business encourages them to take risks, innovate, and develop new ideas and projects that may benefit the business
• Entrepreneurship allows businesses to tap into the creative potential of their employees and generate new products, services or processes that can drive growth and competitive advantage
• This helps to create a culture that generates a sense of ownership and engagement among employees, which increases motivation and helps to retain top talent

Question 5

What are the barriers to entrepreneurship?

Answer 5

1. Entrepreneurial capacity
   - This refers to an individuals ability to think creatively, take risks, and identify and seize business opportunities
2. Access to finance.
   - Aspiring entrepreneur struggle to secure the funding necessary to start or grow their businesses
   - Lack of access to finances a major barrier entrepreneurship, especially for those from disadvantage backgrounds
3. Lack of training.
   - Starting and growing a successful business requires a range of skills, including marketing, finance, management, and leadership
   - Aspiring entrepreneurs may struggle to develop a viable business plan, attract customers, or manage their finances effectively
4. Fear of failure/lack of confidence.
   - Entrepreneurship is inherently risky
   - Entrepreneurs may hold back for fear of failure or a lack of confidence
   - They worry about the financial risks involved in starting a business or fear the stigma of failure

Question 6

Entrepreneurs anticipate risk and uncertainty

Answer 6

• Risk is something that an entrepreneur can plan for
• Uncertainty is caused by factors outside of the entrepreneurs control
• These factors could include:
  
  • Environmental factors such as a weather event
  • Economic changes such as Covid lockdown, Brexit or collapses in the banking
    System
  • The entry of new competitors
  • Changes in local national legislation
  • Changes in the political party governing the country
• Successful entrepreneurs can manage risk and quickly respond to uncertainty in the business environment