Chapter 4 Enterprise

Question 1

What is an entrepreneur

Answer 1

An entrepreneur identifies an opportunity in the market for a new product/service, takes the initiative and risks in order to achieve their goal to start the new business.

Question 2

What are the five characteristics of an entrepreneur

Answer 2

MICRA

 Motivated 
 Innovative 
Confident 
 Risk-taker 
 Ambitious

Question 3

What is motivated

Answer 3

Will push themselves to achieve their goals .
They are determined to do well.
They thrive on the challenge to succeed.
Example: When Mary was made redundant she decided to start her own business.

Question 4

What does it meant to be innovative

Answer 4

Entrepreneurs are good at thinking of new ideas.
 They are creative and constantly looking for ways to
improve their business.
 They can spot an opportunity (gap) in the market and fill the niche.
 Example: Apple coming up with the idea of the Apple iPods.

Question 5

What does it mean to be confident

Answer 5

 They have a strong sense of self-belief and conviction about their own business idea.
 They have a high self-image.
 They are positive in their approach to business
looking for solutions rather than problems.
 This all helps them to convince investors.

Question 6

What does it mean to be a risk taker

Answer 6

 They are not afraid to take a personal and financial chance in their business.
 They are not afraid of failure.
 e.g. Richard Branson competing against Coke with Virgin Cola.

Question 7

What does it mean to be ambitious

Answer 7

 Successful entrepreneurs think ‘big’.
 They are never satisfied with their current
achievement;
 they believe there is always room for constant improvement and they go for it.

Question 8

What is a skill and a characteristic

Answer 8

 A skill is something that you learn over time.
 It is the ability to complete a task.
 Skills can be learned and improved through training, practice and experience.

 A characteristic is an attribute or a trait that is part of your personality.
 A characteristic is not learned.

Question 9

What are five skills of an entrepreneur

Answer 9

H-DRIP

 Human Relations (Managing People) 
 Decision- Making
 Risk-Management
 Identifying Opportunities
 Problem- solving

Question 10

What is the importance of enterprise in a community

Answer 10

1. It creates new business, with increased employment 2. It brings about an increased standard of living for the
   community
2. Local businesses will thrive as workers will have more disposable money
3. People will then live in the area
4. Other firms will spend more money on raw materials,
   services that the area provides

Question 11

What is intrapreneurship

Answer 11

Intrapreneurs use their initative to act like entrepreneurs within the workplace and come up with either:
 new ideas
 ways of solving problems
 ways of saving money
 ways of increasing revenue

Examples:
 new work methods

Question 12

What are three ways to promote intraprenuership

Answer 12

 Rewards- provide rewards for intrapreneurial behaviour, such as pay increases, bonuses.
 Teamwork – encourage a spirit of teamwork among staff.
 Freedom – give staff freedom and personal responsibility when doing their tasks.

Question 13

What is a social entrepreneur

Answer 13

A person who starts an enterprise in the aim of solving social problems or effecting social change e.g.
Bressie- Mental Health

Question 14

What are examples of enterprise in the home the business schools and the community

Answer 14

 Business:
Setting up a new business
 The Home:
Growing organic vegetables. House renovations
 Schools:
Mini- enterprise competition. Forming a study group.
 The Community: Tidy-Towns Neighbourhood Watch

Question 15

What are the importance of enterprise in the society

Answer 15

 The needs of society for goods and services are met.
Profitsearned ANDreinvestedsothateconomycan grow.
 Charities are set up
 Jobs are created, reducing unemployment.

Question 16

What is the importance of enterprise in the business

Answer 16

 New products and services are continuously being
introduced.
 Intrapreneurship is encouraged among employees.
 Profitability for businesses.

Question 17

What is human relations skill

Answer 17

 This is how employees manage people.
 Entrepreneurs needs to have good social skills and get
along with people.
 Good communication skills- when dealing with investors, managers and workers.

Question 18

What is decision making skills

Answer 18

 Need to be quick to make decisions.
 Decisions often need to be made when under pressure
or on the spot.
 Decision – making is needed along with f lexibility to adapt to change.

Question 19

Risk management skills

Answer 19

 They take “calculated risks”.
 High risks = high return
 Low risk = low return

Question 20

Identifying opportunities skills

Answer 20

 Entrepreneurs need to be able to think of new ideas and spot gaps in the market in order to stay ahead of competition.
 E.g. brainstorming – thinking of ideas, discussion
 Solve a problem, turn a hobby into a business.

Question 21

Risk management skills

Answer 21

 Entrepreneurs manage risk based on the chances of risks occuring.:
 The chance of the risk occurring is calculated
 Eg. 1% = low risk, 50% = high risk
 Calculate the cost if the loss were to occur.
 Calculate the cost of insuring the risk
 Planned approach to risk – taking e.g. insurance, proper training, security systems.

Question 22

Problem solving skills

Answer 22

 Entrepreneurs need to able to analyse situations and break down issues or problems into smaller , more manageable parts (analytical skills)
This way they will overcome obstacles as they arise.

Question 23

What is enterprise

Answer 23

Enterprise involves people taking the initiative to start projects.