1.5.2 Entrepreneurial motives and characteristics

Question 1

Intrapreneurship

Answer 1

practice of entrepreneurship within an established firm

-creating/discovering new business opportunities

= new parts of business/new business

Question 2

Intrapreneur

Answer 2

Employee within larger business who thinks like an entrepreneur

Question 3

8 Characteristics of intrapreneur

Answer 3

1. risks
2. problem
3. improve productivity
4. innovation
5. trends (common sense)
6. proactive add value
7. integrity and sense of humour
8. long term view

Question 4

4 reasons to encourage intrapreneurship

Answer 4

1. Motivate employees=better productivity& staff retention
2. encourage networking & collaboration
3. diversification
4. create innovation

Question 5

6 ways to encourage intrapreneurship

Answer 5

1. train in innovation
2. encourage networking/collaboration
3. look for entrepreneurial activity
4. make risk taking/failure acceptable
5. rewards
6. ownership of projects

Question 6

5 Barriers to entrepreneurship

Answer 6

1-lack of cheap labour experience age
2-unstable political environment (taxation)
3-business ides & time
4-available finance (investment & start up capital)
5-risk averse

Question 7

4 Rewards for enterprise:

Answer 7

1. personal development & self esteem
2. sense of control
3. satisfaction from building something
4. capital gains & profit

Question 8

Uncertainty

Answer 8

• businesses unable to predict external shocks or future events
• contingency plans for some eventualities

Question 9

5 ways to protect from uncertainty

Answer 9

1-excess cash supplies
2-reduced creditors-more payable days (suppliers)
3-increase debtors - less payable days given
4-diversify
5-foster agility in decision making (stability)

Question 10

Creditor

Answer 10

Someone you owe money to

Question 11

Debtor

Answer 11

People who owe you money

Question 12

Risk

Answer 12

Probability that things will not go as well as planned
E.g. chance investment will be lost
E.g. possibility entrepreneur will be personally liable for debts a business incurs

Question 13

4 ways successful entrepreneurs deal with risk:

Answer 13

• calculated risk (understand)
• spread by diversifying
• higher returns = account of risks
• keep going despite adversity - persistence

Question 14

2 Financial motives

Answer 14

• profit maximisation (plc/franchise)

- profit satisficing (social enterprise) (satisfactory lvl for owner)

Question 15

Profit satisficing

Answer 15

• find ideal blend between different pressures

- “right profit” rather than biggest

Question 16

4 Non financial motives

Answer 16

1. Ethical stance
2. Social entrepreneurship(+ve contribution to community)
3. Independence
4. Home working

Question 17

entrepreneur

Answer 17

individual that looks at business opportunities that exist
turn idea into action
exploits opportunity and takes risk to start new business

Question 18

2 characteristics of entrepreneurial spirit

Answer 18

risk taking

innovation

Question 19

3 things entrepreneurs need to do…

Answer 19

1. spot niche/opportunities
2. act upon it/mkt mapping/MR helps assess opportunities
3. raise finance/establish business

Question 20

skills

Answer 20

learnt and acquired over time - training

Question 21

5 characteristics of successful entrepreneur

Answer 21

1. understand market
2. determination
3. passion
4. resilience
5. ability to cope with risk

Question 22

4 entrepreneurial skills

Answer 22

1. financial skills
2. persuasive abilities
3. problem solving
4. networking skills

Question 23

moving from entrepreneur to leader (4 personal issues)

Answer 23

1. delegating
2. Eye on the big issue
3. maintaineffective communication
4. co-ordinating more people