1.5.2 Entrepreneurial motives and characteristics 👩🎨 Flashcards
What are the six characteristics an Entrepreneur must have ?
Self confidence
self determination
being a self starter
judgement
commitment
perseverance
initiative
What does self-confidence mean in a business context? how does it contribute ?
Believe they are going to succeed
Contributes- persuades people to invest and buy products
What does self-determination mean in a business context? how does it contribute ?
Good can think they can control events going on - can influence events that can benefit them
What does self-starter mean in a business context? how does it contribute ?
Means you can work independent and make own decision- have own ideas 💡 and develop
What does judgment mean in a business context? how does it contribute ?
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
What does commitment mean in a business context? how does it contribute ?
Having to work long hours - stressful due to risks - makes sure business is working correctly - ensures entrepreneur gets reward
What does perseverance mean in a business context? how does it contribute ?
Able to eliminate risks and reflect through bad times - allows business to improve and prevent risks
What does initiative mean in a business context? how does it contribute ?
Does not allow event to overwhelm them - proactive
Takes opportunity in dynamic and competitive market - gaps
What are the 7 entrepreneurial skills ?
Organising
financial management
Communication
Managing people
Decision making
Negotiation
IT skills
What does orginising mean in a business context? how does it contribute ?
Having to project manage within a business - allows order and efficiency
Can coordinate a range of resources
What does financial management mean in a business context? how does it contribute ?
The business has enough money when it’s needed-
Good cause you have no debt positive cash flow budget variance is favourable
What does communication mean in a business context? how does it contribute ?
You need to interact with stakeholders
Developed good communication skills
charm leads to a good reputation and relationships build
What does managing people mean in a business context? how does it contribute ?
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
What does decision making mean in a business context? how does it contribute ?
Need to be strategic
Has a long-term affect on the business
What does negotiation mean in a business context? how does it contribute ?
Agreeing on terms of contrast
Develop arguments of reasoning in a controlled calm manner- to get an agreement
What does IT skills mean in a business context? how does it contribute ?
Use of social media
communication online
setting up filling systems
Enhances communication meet customer needs 
What are the two Motives that reason why people set up businesses?
Financial Motives - set up businesses because They want to make money
and non-financial
What are the two approaches to financial motives as to why people set up businesses?
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
What are entrepreneurs that focusing on profit maximisation be more likely to do?
Marginalise the needs of other stakeholders
Why may some business entrepreneurs focus on profit satisficing?
you not want extra responsibility-Or may run lifestyle businesses Business has the flexibility to sustain a particular lifestyle
Go to the four non-financial motives that reasons why people set up businesses?
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
