Chapter 4 - Enterprising

Question 1

What is enterprise

Answer 1

It is when an individual or group of people take a risk and decide to start something new.

Question 2

What is an entrepreneur

Answer 2

It is a person who spots a gap in the market and comes up with an idea that they can turn into a business

Question 3

4 reasons people become entrepreneurs & explain

Answer 3

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

Question 4

Name and explain the 6 characteristics of an entrepreneur w/ examples jeffree star

Answer 4

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

Question 5

Name the 6 skills of an entrepreneur w/ examples jeffree star

Answer 5

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

Question 6

In relation to skills of an entrepreneur describe decision making

Answer 6

Making quick clear decisions; weigh up the pros and cons of a situation and make decisions that bring the greatest benefit.

Question 7

In relation to skills of an entrepreneur describe being proactive

Answer 7

Enterprising people take action and make change before they need to be made rather than waiting for the situation or problem to arise.

Question 8

In relation to skills of an entrepreneur describe networking

Answer 8

This skill involved meeting new people and exchanging information. The people you meet may be useful to you in your professional or social life.

Question 9

In relation to skills of an entrepreneur describe risk managemnt

Answer 9

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.

Question 10

In relation to skills of an entrepreneur describe human relations

Answer 10

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

Question 11

In relation to skills of an entrepreneur describe realism

Answer 11

It is very important that entrepreneurs recognize when things are going wrong and take actions to make positive changes

Question 12

What is a social enterprise.

Answer 12

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

Question 13

What is intrapreneurship

Answer 13

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

Question 14

Name the five methods of encouraging/promoting intrapreneurship

Answer 14

Training Programmes 
Rewards
Workplace culture
Teamwork
Resource provider

Question 15

In relation to methods of encouraging intrapreneurship describe training Programmes

Answer 15

Employees can receive training on how to come up with and develop new ideas that benefit the business

Question 16

In relation to methods of encouraging intrapreneurship describe rewards

Answer 16

Employees can be offered financial rewards for ideas used by the business to reduce costs or increase profits

Question 17

In relation to methods of encouraging intrapreneurship describe workplace culture

Answer 17

The business creates a workplace culture where employees know that it is okay to make mistakes

Question 18

In relation to methods of encouraging intrapreneurship describe teamwork

Answer 18

The business should give employees the opportunity to work in teams. This can encourage employees to brainstorm as a group

Question 19

In relation to methods of encouraging intrapreneurship describe resource provider

Answer 19

The business can give employees access to the resources needed to help them to come up with new ideas to benefit the business

Question 20

Name 3 rewards and 3 risks of becoming an entrepreneur

Answer 20

Rewards: 
1. Income 
2. Control
3. Challenge 
Risks: 
1. Income 
2. Decision making
3. Long working hours

Question 21

In relations to rewards of becoming an entrepreneur describe control

Answer 21

Entrepreneurs have control of the business and make all the decisions

Question 22

In relations to rewards of becoming an entrepreneur describe income

Answer 22

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.

Question 23

In relations to rewards of becoming an entrepreneur describe challenge

Answer 23

Entrepreneurs enjoy the challenge of setting up a business and working hard to make it successful

Question 24

In relations to risks of becoming an entrepreneur describe income

Answer 24

Entrepreneurs may be unable to take an income from the business for a number of years

Question 25

In relations to risks of becoming an entrepreneur describe decision making

Answer 25

Entrepreneurs cannot be experts in all areas of the business. They may make mistakes when making decisions, which could damage the firms reputation

Question 26

In relations to risks of becoming an entrepreneur describe long working hours

Answer 26

They often must work very long hours. This can have a negative impact on their personal life and lead to high levels of stress

Question 27

4 reasons why enterprise is important in business

Answer 27

Encourages intrapreneurship
Greater efficiency - encourages the business to use their resources more creatively
Spin off business - enterprise can identify spin off businesses that can be developed by the firm
Business culture - a business culture where intrapreneurship is encouraged can help employees to come up with ideas without the fear of punishment for unsuccessful results

Question 28

4 reasons why enterprise is important in the community

Answer 28

Encourage enterprise - successful entrepreneurs encourage others to take risks and become entrepreneurs
Wealth creation - local people spend their money in local shops And restaurants
Creates employment - creates direct and indirect employment
Community engagement - entrepreneurs get involved in the local community by sponsoring local events and teams.

Question 29

What is employee embezzlement insurance?

Answer 29

Owner of a business received financial compensation if it is found that an employee is stealing from the business or are causing damage to property