1.5.2 Entrepreneurial motives and characteristics

Question 1

Difference between characteristic & skill

Answer 1

A characteristic is a distinguishable feature/quality of a person

whereas

Skill is the ability and the capacity to do something well

Question 2

Characteristics of entrepreneurs (5)

S

S

S

I

C

Answer 2

1) Self confidence - successful entrepreneurs are those who believe they can succeed
2) Self determination - having the drive to keep going when coming up against problems
3) Self starter - willing to work independently and make decisions by yourself
4) Initiative - they are proactive and adapt to change
5) Commitment - successful entrepreneurs are those who commit to the project and put in the time to make it work

Question 3

Skills of an entrepreneur (5)

C

F M

M P

N

O

Answer 3

1) Communication e.g interacting with stakeholders , face to face communication skills

2) Financial management -
ability to ensure the business has enough cash whenever needed -> includes budgeting & managing cash flow forecasts

3) Managing people - recruit ‘right people’ and show leadership & direction. Also need to make sure their needs are satisfied.
4) Negotiating - negotiate deals & contracts with suppliers and customers
5) Organisation - Lots to coordinate when running and setting up a business e.g planning
& monitoring

Question 4

What are the two types of motives as to why people set up business

Answer 4

Financial and Non Financial motives

Question 5

2 financial motives as to why people set up businesses

Answer 5

Profit Maximisation & Profit satisfying

Question 6

Profit Maximisation

Answer 6

An attempt to make as much profit as you can in a given time period

Question 7

Profit satisfycing

Answer 7

Making enough profit to satisfy the needs and lifestyle of business owners

Question 8

2 reasons as to why entrepreneurs are profit satisficing

Answer 8

1) Don’t want to take on the extra responsibility of expanding their business
2) May just want to run ‘lifestyle businesses’ meaning they generate their business to make enough profit to sustain a particular lifestyle e.g travelling , spending time with family

Question 9

3 non financial motives

Answer 9

1) ethical stance - running their own business to support moral & ethical principles e.g climate change, animal harming
2) independence - just may to be own boss & home working
4) to become a SOCIAL ENTERPRISE - these are organisations that trade with the aim of improving human and environmental well-being

Question 10

Benefits of independence - 2

Answer 10

• flexibility
• make your own decisions without anybody else involved

Question 11

pros + cons of working from home

2 & 1

Answer 11

pros
- good working life balance ( Work whenever you want)

• Costs e.g time + money travelling to and from work eliminated

cons
-thin line from home/work life - may get distracted