enterprise

Question 1

what is business enterprise

Answer 1

The formation of a new business or
development of a new good or service to be introduced
to the market.

Question 2

what is an entrepreneur

Answer 2

A person who sets up a business by taking on the financial risks in the hope of making a profit.

Question 3

what are the financial motives of an entrepreneur

Answer 3

• Generate a profit
• Provide employment for self
• Financial security for self and family

Question 4

what characteristics does an entrepreneur need?

Answer 4

• Initiative ➔ Taking
  action
• Innovation ➔ Idea
  for a new good or
  service
• Identifying
  opportunities ➔ Spotting a gap in the market
• Organising resources ➔ Planning and using a range
  of resources e.g. raising finance, employing staff,
  buying materials

Question 5

what are the non-financial motives for an entrepreneur

Answer 5

• Self satisfaction/challenge
• Be own boss
• Fill a gap in the market
• Create employment for others

Question 6

what are the benefits of being an entrepreneur

Answer 6

• Be their own boss
• Flexible working hours
• Pursue an interest
• Good customer feedback
• Earn more money (profit)
• Dissatisfaction with
  current job
• Greater work-life balance
• Self-esteem from building
  something new
• Self- satisfaction
• Employ for
  self and other

Question 7

what are the social/ community motives for an entrepreneur

Answer 7

• Social enterprises are those whose prime objective is
  to do good in society rather than to make a profit
• Surplus revenue is used to support a specific cause
  e.g. a children’s charity or community group

Question 8

negatives of being an entrepreneur

Answer 8

• Financial loss of income and
  money invested
• Low sales
• Unexpected costs e.g. rise
  in rent
• Unexpected events e.g. new
  competitor
• Potentially long hours and
  stress
• Loss of security
• Pressure on friends and
  family
• Damage to reputation if fail
• May lose home