1.5.2 Entrepreneur

Question 1

Characteristics of a entrepreneur

Answer 1

• Opportunity spotter
• Creative
• Show initiative
• Risk taker
• Positive thinker
• Hard working
• Self motivated
• Decision maker
• Visionary
• Enthusiastic
• Determined and persistent

Question 2

Skills required by an entrepreneur

Answer 2

• Communication
• Literacy
• Numeracy
• Information technology
• Organisation
• Problem solving
• Team working

Question 3

Reasons why people set up a business

Answer 3

• Fulfilling a dream
• Making money
• In charge of own destiny
• Be own boss
• Work-life balance
• To prove you can
• Developing innovation
• Providing a service
• Supporting a community

Question 4

What are the financial motives

Answer 4

•Profit maximisation
To make as much profit as possible
Profit = sales revenue – total costs

•Profit satisficing
To make enough profit to be satisfied but not be purely motivated by profit
May profit satisfy to maintain a work life balance

Question 5

What are the non financial motives

Answer 5

•Ethical stance
To behave in a manner deemed to be morally correct
Provide a good or service that meets ethical beliefs e.g. cosmetics not tested on animals or clothes made from fair trade cotton

•Social entrepreneurship
Motivated by supporting a cause rather than making a profit
Any surplus revenue earned is used to further support the cause e.g. support the community or fund research

•Independence
Be own boss and make own decisions

•Homeworking
Match family commitments to work commitments
•mWork life balance