1.5.1 - Role of an entrepreneur - Risk & Reward

Question 1

What is there when setting up a business

Answer 1

Risk & Reward

Question 2

Risks of being an entrepreneur

Answer 2

• business may fail
• debts have to be paid off - might have borrowed money to start/finance growth
• May have left your job/uni. Getting it back may be challenging

Question 3

However the risk of failure can be a what?

Answer 3

Can be a motivator for entrepreneurs to carry on and be successful even if the going gets tough

Question 4

Success and failure have an opportunity cost T/F

Example

Answer 4

True

e.g an entrepreneur who has just started a business may have left a job that pays £40,000 - losing out on financial security