1.5.2 Entrepreneurial Motives And Characteristics

Question 1

Characteristics and skills required by entrepreneurs

Answer 1

Skills:
- communication
- team working
- problem solving
- organisation
- numeracy
- information technology

Characteristics:
- creativity
- hard working
- resilience
- initiative
- self confidence
- risk taker

Question 2

Financial reasons people set up businesses

Answer 2

1. Profit maximisation
   - people want to create a profitable business that generate substantial revenue and profit for themselves and their shareholders
2. Profit satisficing
   - occurs when the entrepreneur is not solely focused on maximising profits but rather achieving a satisfactory level of profit
   - this is common among small businesses, where the owner may prioritise their work life balance

Question 3

Non financial reasons people set up businesses

Answer 3

1. Ethical stance
   - some entrepreneurs may have a particular ethical stance that they want to build their business around
2. Social entrepreneurship
   - these entrepreneurs aim to create a business that seeks to address a social or environmental problem while also earning a living
3. Independence
   - many people want to be their boss and have control over their work
   - they may be dissatisfied with traditional employment structures or desire the freedom and flexibility that comes with running their own business
4. Home working
   - with the advancement of technology, many people have started businesses from their homes and this offers the more flexibility and a better work life balance