Entrepreneurial motives and characteristics(1.5.2) Flashcards
Entrepreneurial skills required
communication
team working
problem solving
organisation
numeracy
information technology
Entrepreneurial characteristics required
creativity
hard working
resilience
initiative
self confidence
risk taker
Reasons why people set up businesses
profit maximisation
profit satisficing
ethical stance
social entrepreneurship
independence
home working
Profit maximisation-reasons why people set up businesses
financial reason
people who want to create a profitable business that generates substantial revenue and profit for themselves and their shareholders
Profit satisficing-reasons why people set up businesses
financial reason
occurs when the entrepreneur is not solely focused on maximising profits but rather achieving a satisfactory level of profit
this is common along small businesses where the owner may prioritise their work life balance
Ethical stance-reasons why people set up businesses
non financial reason
some entrepreneurs may have a particular ethical stance that they want to build their business around
e.g environmental sustainability or social justice
Social entrepreneurship-reasons why people set up businesses
non financial reason
these entrepreneurs aim to create a business that seeks to address a social or environmental problem while also earning a living
Independence-reasons why people set up businesses
non financial reason
many people want to be their boss and have control over their work
they may be dissatisfied with traditional employment structures or desire the freedom and flexibility that comes with running their own business
Home working-reasons why people set up businesses
non financial reason
with the advent of technology many people have started businesses from their homes and this offers them more flexibility and a better work life balance
