1.5.2 entrepreneurial motives and characteristics Flashcards
Skills definition
An ability to do an activity or job well, especially because you have practiced it
Skills include:
- communication
- team working
- problem solving
- organisation
- IT
Characteristics definition
A special quality or trait that makes a person, thing or group different from others
Characteristics include:
- creativity
- hard working
- resilience
- initiative
- self confidence
- risk taking
2 financial reasons why people set up businesses
- profit maximising
- profit satisficing
Profit maximising definition
Where the entrepreneur aims to make as much profit as possible in a given period
Profit satisficing definition
Where the entrepreneur aims to make enough profit to maintain their interest in the business
why might a business be happy with profit satisficing
- may not want to take on the extra responsibility of expanding the business
- lifestyle business
the non-financial motives of setting up a business
- ethical stance
- social entrepreneurship
- independence
- home-working
ethical stance definition
where an entrepreneur supports a moral belief e.g. refuse to test on animals, commitment to tackling a number of issues including climate change and waste…
social entrepreneurship definition
businesses that trade with the aim of improving environmental and human well-being. income is mostly generated through trade and donation. e.g. fair trade
independence definition
when an entrepreneur wants to be its own boss and wants to have the freedom to make their own decisions. they resent being told what to do.
homeworking definition
working from home:
- reduces travel cost and time
- flexibility
- no need to rent an office space
- mainly online businesses
- technological advances
possible issues:
- distraction
- work
- life imbalance
- lack of collegiality (companionship and cooperation between colleagues)
- loneliness
