Entrepreneurial Skills

Question 1

List ten characteristics of a successful entrepreneur.

Answer 1

1) they have a vision of what they want to achieve in the future
2) they have confidence in their ability to succeed
3) they like to be in control and in charge
4) they have willpower and perseverance to overcome obstacles
5) they are very good at planning and organizing
6) they have exceptional leadership and management skills
7) They are flexible and able to adapt easily to change
8) they have high levels of energy and commitment
9) they have the ability to identify a business opportunity and see potential in new ideas.
10) they are risk takers

Question 2

Define the following:
Market
Raw material
Discount

Answer 2

Market: a place where things are bought and sold, usually from stall in the open air
Raw material: unprocessed goods in its natural state, e.g. Wood
Discount: an amount by which the price is reduced, e.g. 15% off the original price.

Question 3

Define the following:
Research
Profit
Competitors in a business

Answer 3

Research: the study of consumers needs and preferences
Profit: the extra money obtained by selling something for more than it cost to buy or make it.
Competitors in business: when two or more businesses sell the same product or provide the same services and compete for customer sales.

Question 4

Define the following:
Entrepreneur
Product
Loss
Calculated risk

Answer 4

Entrepreneur: someone who sees a need and then starts a business to satisfy that need.
Product: an article or substance that is manufactured and ready to sell
Loss: this is when you sell a product for less than what it cost you to make or buy.
Calculated Risk: making a decision even though you know there is risk involved, but you’ve thought about it carefully.

Question 5

Explain what a SWOT analysis is and why do you use it?

Answer 5

S = Strength: you find the positive characteristics/ elements in your favour
W = Weakness: all the things that you are not good at or resources that you don't have available to you.
O = Opportunities: chances that you can see to improve your business
T = Threats: things that have a negative effect on the business

You use a SWOT analysis to improve your chances of success: work towards your strengths, new aware of your weaknesses and try to improve on them, grab the opportunities and strategise to eliminate threats.

Question 6

For five points, discuss setting and achieving goals.

Answer 6

Goals are targets that you set to achieve within a certain time. These goals must be referred back to to make sure that you are on target to achieve them. To measure your success, you need to ask the questions: 1) was the goal reached in time? 2) do I need to change any of my goals? 3) was it realistic?

Question 7

For six points explain what advertising and media is and why it is important.

Answer 7

Advertising: a tool used to promote your business. Media: places to advertise or spread news, such as magazines, newspapers, radio, TV, billboards
Advertising is used to give people information about a product and to encourage people to purchase the product and increase sales. The important elements of advertising are:
Grab the person’s attention.
Create a desire to buy the product, especially through associating it with a successful/attractive sector of society.
Give them enough information to know where they could buy the product.

Question 8

What is an entrepreneur?

Answer 8

A person who owns and runs their own business, assumes all the risks and rewards for the business venture and has the skills and knowledge to combine the other factors of production to create a useful good or service which can be sold at a profit to consumers.