6 Entrepreneurs And Leaders

Question 1

Characteristics

Answer 1

Understanding the market,
Determination,
Passion, 
Resilience,
The ability to cope with risk.

Question 2

Entrepreneurial motives

Answer 2

Drive people into setting up a business

Include financial motives such as making a profit or making the maximum profit available, known as profit maximisation.

Question 3

Entrepreneurial motives: Non-profit motives include

Answer 3

• Satisficing - the motive is to make sufficient profits to satisfy the entrepreneur but not necessarily the greatest profit possible
• Ethical stance - starting a business with the intention of helping others, e.g. producing more comfortable wheelchairs for people with disabilities
• Social entrepreneurship - The motive is to create a sustainable, profit-making business that also benefits the community, e.g. a secondhand bookshop.
• Independence and homeworking - The entrepreneur wants more freedom to work when and where they please, perhaps to fit around family or other commitments.

Question 4

Entrepreneurial characteristics

Answer 4

Personality traits and skills that an entrepreneur needs to have in order to start and run a successful business. The main characteristics are a risk-taking attitude, creativity, resilience (being able to cope with setbacks), self-confidence and determination

Question 5

Business objectives

Answer 5

The goal of business wants to achieve. This will depend on the stakeholders who are involved in the business. Stakeholders are defined as groups or individuals that are affected by and / or have an interest in the operations and objectives for the business.

Question 6

Business objectives include

Answer 6

Survival, profit maximisation, sales maximisation, market share, cost efficiency, employee welfare, customer satisfaction, social objectives.

Question 7

Business objectives: survival

Answer 7

To ensure the continuing existence of the business – this can apply to any business, but for new businesses it is likely to be an objective due to the large amount of risk and uncertainty regarding its success.

Question 8

Opportunity cost

Answer 8

Is the value of the next best option forgone when a business decision is made.
As a business has scarce resources, it needs to weigh up its choices when deciding on the way forward on a particular issue. This helps decide the least risky approach and reduces the level of uncertainty.