1.5.2 Entrepreneurial motives and characteristics 👩‍🎨

Question 1

What are the six characteristics an Entrepreneur must have ?

Answer 1

Self confidence

self determination

being a self starter

judgement

commitment

perseverance

initiative

Question 2

What does self-confidence mean in a business context? how does it contribute ?

Answer 2

Believe they are going to succeed

Contributes- persuades people to invest and buy products

Question 3

What does self-determination mean in a business context? how does it contribute ?

Answer 3

Good can think they can control events going on - can influence events that can benefit them

Question 4

What does self-starter mean in a business context? how does it contribute ?

Answer 4

Means you can work independent and make own decision- have own ideas 💡 and develop

Question 5

What does judgment mean in a business context? how does it contribute ?

Answer 5

Business environment changing all the time - have to take in advice and info ℹ️ and listen 👂

• able to see business future outlook and make right decisions and objectives

Question 6

What does commitment mean in a business context? how does it contribute ?

Answer 6

Having to work long hours - stressful due to risks - makes sure business is working correctly - ensures entrepreneur gets reward

Question 7

What does perseverance mean in a business context? how does it contribute ?

Answer 7

Able to eliminate risks and reflect through bad times - allows business to improve and prevent risks

Question 8

What does initiative mean in a business context? how does it contribute ?

Answer 8

Does not allow event to overwhelm them - proactive

Takes opportunity in dynamic and competitive market - gaps

Question 9

What are the 7 entrepreneurial skills ?

Answer 9

Organising

financial management

Communication

Managing people

Decision making

Negotiation

IT skills

Question 10

What does orginising mean in a business context? how does it contribute ?

Answer 10

Having to project manage within a business - allows order and efficiency

Can coordinate a range of resources

Question 11

What does financial management mean in a business context? how does it contribute ?

Answer 11

The business has enough money when it’s needed-

Good cause you have no debt positive cash flow budget variance is favourable

Question 12

What does communication mean in a business context? how does it contribute ?

Answer 12

You need to interact with stakeholders
Developed good communication skills

charm leads to a good reputation and relationships build

Question 13

What does managing people mean in a business context? how does it contribute ?

Answer 13

As your business grows - have to recruit more staff- individuals may have different motivational needs - make sure you’re recruiting the right people

Clear leadership- easier to manage

Question 14

What does decision making mean in a business context? how does it contribute ?

Answer 14

Need to be strategic

Has a long-term affect on the business

Question 15

What does negotiation mean in a business context? how does it contribute ?

Answer 15

Agreeing on terms of contrast

Develop arguments of reasoning in a controlled calm manner- to get an agreement

Question 16

What does IT skills mean in a business context? how does it contribute ?

Answer 16

Use of social media
communication online
setting up filling systems

Enhances communication meet customer needs 

Question 17

What are the two Motives that reason why people set up businesses?

Answer 17

Financial Motives - set up businesses because They want to make money

and non-financial

Question 18

What are the two approaches to financial motives as to why people set up businesses?

Answer 18

Profit maximisation - Making as much profit as possible at a given period of time

profit satisficing - Making enough profit to satisfy the needs of business owners

Question 19

What are entrepreneurs that focusing on profit maximisation be more likely to do?

Answer 19

Marginalise the needs of other stakeholders

Question 20

Why may some business entrepreneurs focus on profit satisficing?

Answer 20

you not want extra responsibility-Or may run lifestyle businesses Business has the flexibility to sustain a particular lifestyle

Question 21

Go to the four non-financial motives that reasons why people set up businesses?

Answer 21

Ethical stance -Set up business to help spread awareness of moral beliefs

social enterprise -Aim to improve human and environmental well-being

Independence- Want to have it and freedom and be their own boss make decisions-However may be limited have to still pay tax

homeworkingTime and expense paid for travelling is eliminated and enjoy abilities able to take breaks and spend time with family