1.5.1 Role of an entrepreneur

Question 1

Business:

Answer 1

• organisation exists
• provide goods and services
• on commercial basis to customers

Question 2

Goods;

Answer 2

Physical products

E.g. consumer electronics, industrial components, cars

Question 3

Services:

Answer 3

Intangible products

E.g. insurance, dental services, cleaning

Question 4

Enterprise:

Answer 4

Skills & abilities to take risks and create profits
Creation of a business to meet = needs and wants of customers

another word for a for: profit business or company

Question 5

Entrepreneur:

Answer 5

• person who organises,operates and assumes the risk for a business venture
• person who takes the risk in starting a new business

Question 6

Business venture:

Answer 6

• considered a small business.
• Many ventures invested in by one or more individuals /groups
• expectation of the business = financial gain for all backers.

Question 7

Start-up:

Answer 7

• new business enterprise

- formed by one or more entrepreneurs

Question 8

Market mapping/budget research

Answer 8

grid showing 2 features of a markets individual brands added

+identify gaps, visual/simple interpretation, compare to competitors

-subjective, gap may not have a market, not every factor

Question 9

7 Entrepreneur skills:

Answer 9

1. creative
2. innovations
3. shows leadership
4. driven & determined
5. confident
6. risk taking
7. charismatic

Question 10

6 Sources of business ideas;

Answer 10

1. business experience
2. personal experience
3. observations
4. brain storm
5. innovation
6. budget research/market mapping

Question 11

6 Importance of business ideas to entrepreneurship:

Answer 11

1. solve problem
2. better/cheaper way
3. simple/practical
4. delivered quickly
5. clear focus
6. anticipate trends and exploit market

Question 12

Role of entrepreneur

Answer 12

• spot opportunity
• take risk = return
• catalyst for creation and growth of new business enterprise

Question 13

Brain storming

Answer 13

Variables plotted = niches
+new innovation

-ideas may come to nothing if don’t understand market

Question 14

Personal experience

Answer 14

Day-day experience &;bad experience
+insight of consumer start new way

-cant build around 1 experience

Question 15

Business experience

Answer 15

-Insights what works,
-less need for market research
+insight in mismatch between customer expectation /supplier delivery

-may do same as its ex- employee

Question 16

Analysis of opportunity

Answer 16

+research into segments, rival=identify opportunity

-looking too close may = unoriginal development

Question 17

Observations

Answer 17

Watching what happens to customers (even in other markets), see bad experiences look for poor customer service

Question 18

Skill

Answer 18

Ability to do something well

e.g. negotiating

Question 19

Characteristic

Answer 19

Feature or quality (personality based)

E.g. determined