Chapter 4 - Enterprising Flashcards
What is enterprise
It is when an individual or group of people take a risk and decide to start something new.
What is an entrepreneur
It is a person who spots a gap in the market and comes up with an idea that they can turn into a business
4 reasons people become entrepreneurs & explain
Being your own boss - they get to make all the decisions on behalf of the business e.g. opening hours
Varied work day - they like different types of work
Unemployment - someone who can’t find work becomes an entrepreneur out of necessity.
More money believe they can make more money by owning their own business
Name and explain the 6 characteristics of an entrepreneur w/ examples jeffree star
Decision making - they can make quick and clean decisions e.g. decided to start a business
Risk taker - they take financial and personal risk. Failure is thought of as a learning experience e.g. used all his money to start his business
Determination - don’t give up easily when they are faced with failure e.g. started from nothing
Self motivation - they have personal drive and ambition to achieve their goal e.g. keeps going even though people don’t like him
Creativity - think outside of the box and come up with new ideas e.g. created something completely new
Self confident e.g. started a business although people told him not to
Name the 6 skills of an entrepreneur w/ examples jeffree star
Decision making e.g. invested in other businesses
Being proactive e.g. got a bigger warehouse before he ran out of space to store things
Networking e.g. collaborations with others
Risk management e.g. was robbed but had insurance
Human relations e.g collaborated with other influencers
Realism e.g. took a step back from his job when he was involved in controversy
In relation to skills of an entrepreneur describe decision making
Making quick clear decisions; weigh up the pros and cons of a situation and make decisions that bring the greatest benefit.
In relation to skills of an entrepreneur describe being proactive
Enterprising people take action and make change before they need to be made rather than waiting for the situation or problem to arise.
In relation to skills of an entrepreneur describe networking
This skill involved meeting new people and exchanging information. The people you meet may be useful to you in your professional or social life.
In relation to skills of an entrepreneur describe risk managemnt
Entrepreneurs can be exposed to commercial, physical and financial risks. They must identify those risks ad find ways to reduce the likelihood of a risk occurring.
In relation to skills of an entrepreneur describe human relations
This skill is used to build relationship with people and to bring out the best in them. Enterprising people use their human relations skills to persuade people to help them
In relation to skills of an entrepreneur describe realism
It is very important that entrepreneurs recognize when things are going wrong and take actions to make positive changes
What is a social enterprise.
An enterprise with a social or environmental aim. All profits are used for the cause rather than for the people running it e.g. to reduce property or protect the environment
What is intrapreneurship
Employees of a business act like entrepreneurs within that eye come up with new ideas, new ways of solving problems or create a new production process, which helps to increase business profits or reduce cost
E.g. google employees came up with gmail
Name the five methods of encouraging/promoting intrapreneurship
Training Programmes Rewards Workplace culture Teamwork Resource provider
In relation to methods of encouraging intrapreneurship describe training Programmes
Employees can receive training on how to come up with and develop new ideas that benefit the business
In relation to methods of encouraging intrapreneurship describe rewards
Employees can be offered financial rewards for ideas used by the business to reduce costs or increase profits
In relation to methods of encouraging intrapreneurship describe workplace culture
The business creates a workplace culture where employees know that it is okay to make mistakes
In relation to methods of encouraging intrapreneurship describe teamwork
The business should give employees the opportunity to work in teams. This can encourage employees to brainstorm as a group
In relation to methods of encouraging intrapreneurship describe resource provider
The business can give employees access to the resources needed to help them to come up with new ideas to benefit the business
Name 3 rewards and 3 risks of becoming an entrepreneur
Rewards: 1. Income 2. Control 3. Challenge Risks: 1. Income 2. Decision making 3. Long working hours
In relations to rewards of becoming an entrepreneur describe control
Entrepreneurs have control of the business and make all the decisions
In relations to rewards of becoming an entrepreneur describe income
Entrepreneurs believe that if their business idea is successful they could earn more money that they would earn if they worked as employees for another business.
In relations to rewards of becoming an entrepreneur describe challenge
Entrepreneurs enjoy the challenge of setting up a business and working hard to make it successful
In relations to risks of becoming an entrepreneur describe income
Entrepreneurs may be unable to take an income from the business for a number of years
