1.5.2 Entrepreneurial Motives And Characteristics

Question 1

Who makes a good entrepreneur? (5 main characteristics)

Answer 1

Understands the market
Determination
Passion
Resilience
Ability to cope with risk

Question 2

Good entrepreneurs will need to be able to demonstrate what common skills? (4)

Answer 2

Financial skills
Persuasive abilities
Problem-solving skills
Networking skills

Question 3

What are 6 reasons to set up a business?

Answer 3

Profit maximising
Profit satisficing
Independence
Home-working
Ethical stance
Social entrepreneurship

Question 4

What does profit maximising mean for an entrepreneur?

Answer 4

To continually seek to get the most profit from every business transaction. Often causes long-term problems, with consumers feeling exploited or cheated with substandard work caused by skimping on material and workmanship.

Question 5

What does profit satisficing mean for a entrepreneur?

Answer 5

Long-term success may be based on this, with the need to accept lower than possible profits in the short-term to build a brand or a reputation.

Question 6

What can independence mean to an entrepreneur?

Answer 6

Entrepreneurs sometimes set up their own business to avoid the need to take orders from others or fit in with company policy. ‘Being your own boss’ as a common motive.

Question 7

What can home-working mean to an entrepreneur?

Answer 7

Being able to work at home or from home (independance). Particularly valued by those with family commitments.

Question 8

What can an ethical stance mean for an entrepreneur?

Answer 8

Those with strong beliefs in how business should be done.

Question 9

What can a social enterprise mean to an entrepreneur?

Answer 9

Clear cross-over with ethical belief, some entrepreneurs start-up a business whose major aim is to make a positive contribution to their community. Often by providing a service that benefits people in need.