20. Entrepreneurial motives and characteristics

Question 1

Characteristics of entrepreneurs:

Answer 1

• Self-confidence
• self-determination
• Being a self-starter
• Judgement
• Commitment
• Perseverance
• Initiative

Question 2

Skills required by entrepreneurs:

Answer 2

• Organising
• Financial management
• Communication
• Managing people
• Decision making
• Negotiating
• IT skills

Question 3

Reasons why people set up businesses:

Answer 3

• Fianancial motives (Profit maximisation, profit satisficing)
• Non-financial motives (Ethical stance, social enterprise, Independence, home working)

Question 4

Profit maximisation

Answer 4

An attempt to make as much profit as possible in a given time period

Question 5

Profit satisficing

Answer 5

Making enough profit just to satisfy the needs of the business owner(s)