1.5.2- Entrepreneurial Motives and Characteristics

Question 1

Definition of an entrepreneur

Answer 1

land- natural resources
labour- employees
capital- finance invested in the business (tools)
enterprise- the role of an entrepreneur is to bring the other three together to make a profit

Question 2

Entrepreneurial characteristics

Answer 2

creative 
hardworking 
resilient 
initiative 
self confidence 
risk taker

Question 3

financial motives for starting a business

Answer 3

profit maximisation- make the highest amount of product possible
profit satisficing- aims to make just enough profit to keep the business moving forward, as well as having another aim at the same time

Question 4

non financial motives

Answer 4

want to be there own boss- personal autonomy, sense of pride/achievement

Question 5

advantages of working from home

Answer 5

• gives good work life balance
• can work hours that suit their lifestyle
• no commute
• no tension with colleagues

Question 6

disadvantages of working from home

Answer 6

• no socialisation with other workers- no ideas to bounce off
• person may find it hard to switch off
• need lots of self discipline

Question 7

social enterprise

Answer 7

businesses trading for social and environmental purposes

Question 8

benefits of not for profit social enterprise

Answer 8

• entrepreneurs can earn a living doing something valuable which can be motivating
• the more successful the social enterprise the more society benefits from it
• consumers may be willing to buy more from a social enterprise