Enterprise & Entrepreneurs

Question 1

Enterprise skills definition

Answer 1

Skills that allow an individual to respond effectively to changing market situations.

Question 2

Characteristics of a successful entrepreneur

Answer 2

Willingness to take risks 
Ability to spot opportunities 
Determination and persistence 
Passion 
Relevant skill/ expertise
Vision/ creativity 
Motivation to succeed

Question 3

Entrepreneurs definition

Answer 3

Individuals who have an idea that they develop by setting up a new business and encouraging it to grow.

Question 4

Reasons for failure of a new business

Answer 4

Lack of finance
Poor infrastructure
Skills shortages
Complexity of regulations or red tape

Question 5

Opportunity cost

Answer 5

The real cost of taking a particular action or the next best alternative forgone.

Question 6

Motives for becoming an entrepreneur

Answer 6

Government encouragement 
Increasing wealth = more opportunities 
Pace of change = new opportunities 
Independence at work 
Make money 
Desire to use skills in a useful/profitable way
Provide employment

Question 7

Government support for enterprise & entrepreneurs

Answer 7

Provide more products/services for communities
Reduce unemployment
Fill market niches
Help productivity to improve by increasing competitive pressures in markets
Encourage more flexible businesses

Question 8

Government support is provided by

Answer 8

Reducing business taxes
Reducing the burden of regulations & bureaucracy on enterprise
Reducing barriers to raising finance for small businesses
Improving support for small/new businesses
Promoting a change in the UKs enterprise culture
Encouraging business start-ups
Introducing legislation to promote competition
Funding projects
Encouraging unemployed people to move into self employment

Question 9

Enterprise definition

Answer 9

Refers to the process by which new businesses are formed and new products and services are created and brought to the market.