Chapter 19: Role of an Entrepreneur Flashcards
What is an entrepreneur?
People who have a business idea and make money woking for themselves
What are 4 roles an entrepreneur has?
Innovator
Organisor
Decision maker
Risk Taker
How do entreprenuers find business ideas?
Business experience: come from existing job
Personal experience: from outside of work
Skills: look for those with a broad skill base
Lifestyle choices: those who wanty to make a lifestyles change
What are the stages in setting up a business?
Idea: a business idea
Research: carrying out market research
Planning: make a thourough plan for the business
FInancing: how finance will be made when the business is ‘up and running’
Location: the location of the business, wherre it will be in order to attact customers.
Resources: The business wil contain a list of all the things that are needed to set up and run the business.
Launch: This is when the business first starts trading
What does an entreprenuer need to do in order to expand and develop their business?
Manage finance: a business needs to fund it operations
Administration: Involves keeping an acurate record of all transactions so that profit and tax can be calculated.
Marketing: advertising and increasing revenue
Purchasing: The buiness will have to buy resources
Managing people: Some run businesses independantly, other may recurit others fro help.
Production: The production process is important fro a business to function.
What is an intarpreneurship
Employess, usually in a large business, that use their entrepreneurial skills to find and develop initiaves taht will have financial benefits for their comapnies.
3 advantages to employing intrapreneurial staff
Drive innovation in a business
Satisfying the self actualisation neesd of employees
Individuals benefit as thye are getting the opportunity to experiment and be creative wihtout havign to meet the cost of failure.
What are some examples of barriers to entrepreneurship?
Lack of finance: some people may not have the neccessary finance
Legal barriers: can discourage potential entreprenuers
Fear of failure: the failure rate for strat up businesses can be high, stats show that the chance of being a sucessful entreprenuer is low.
