Entrepreneaurial motives and characteristics 1.5.2

Question 1

what is an enterprise

Answer 1

the creation of a business to meet the needs and wants of customers through taking risks and creating profits

Question 2

what skills do entrepreneurs require (6)

Answer 2

1. communication
2. team working
3. problem solving
4. organisation
5. numeracy
6. IT skills

Question 3

what characteristics do entrepreneurs require (6)

Answer 3

1. creativity
2. hard working
3. resilience
4. initiative
5. self confidence
6. risk taker

Question 4

why is persuasive communication particularly important for entrepreneurs?

Answer 4

they need to:
- persuade potential financial backers
- persuade people to join team
- persuade customers to buy the product

Question 5

outline and explain the financial reasons for setting up a business (2)

Answer 5

1. profit maximisation - set up by people who want to create a profitable business that generates substantial revenue and profit
2. profit satisficing - set up when the entrepreneur only aims to reach a satisfactory level of pricing, perchance because they want to balance work/home life

Question 6

outline and explain the non-financial reasons for setting up a business (3)

Answer 6

1. ethical stance - set up if entrepreneurs want to make a change (e.g. environmental sustainability), so they form a business around this
2. independence - set up by people who want to be their own boss and may be dissatisfied with traditional employment structures because they want flexibility or freedom in their work
3. home working - set up by people who want a more flexible job and a better home-life balance

Question 7

give 4 drawbacks of being an entrepreneur

Answer 7

1. occasional loneliness and isolation
2. higher responsibility
3. hard work/stressful
4. financial pressure