Entrepreneurs 1.18

Question 1

Business

Answer 1

An organisation that exists to produce goods and services on a commercial basis to customers.
-> exists to provide goods and services to customers on a commercial basis
Goods: physical products
Services: intangible goods eg. Insurance

Question 2

Benefits of business to society

Answer 2

. Create employment and develop human capital
. Drive innovation through R&D and new products
. Pay taxes and profits earned and collected taxes for govt
. Creating wealth by providing returns on investment (people buying consumer goods)

Question 3

What is an entrepreneur

Answer 3

A person who is willing and able to create a new business idea or invention and take risks in pursuing success, takes the risk to start business
-> successful entrepreneurs can identify and pursue opportunities, create value for customers and build thriving business
What is its role?
. Spots business opportunities
. Takes (calculated) risks in order to gain possible future returns
. Acts as a catalyst for creation and growth of new business enterprises

Question 4

What is an enterprise?

Answer 4

“The skills and abilities to take risks and create profits”
-> In order to have a business you have to take risks, such as asking for loans
“The creation of a business to meet the needs and wants of customers” - marketing

Question 5

Startup

Answer 5

Startup- beginning of a business
. A new business enterprise, formed by one or more entrepreneurs

Question 6

What do entrepreneurs do: they organise resources

Answer 6

. An entrepreneur must be able to gather and coordinate the resources necessary to start and operate a business

Question 7

What do entrepreneurs do: they make business decisions

Answer 7

. Entrepreneurs must be able to make decisions that will determine the success or failure of their business
. Making the wrong decisions can lead to wasted resources, lost opportunities and ultimately business failure

Question 8

What do entrepreneurs do: they take risks

Answer 8

. Entrepreneurs involves taking risks - financial, personal, or professional
. These risks can pay off with great rewards, but they can also lead to failure and financial loss

Question 9

Importance of business ideas to entrepreneurship

Answer 9

. Solve a problem
. Offer a better, cheaper way
. Simple & practicable
. Can be delivered quickly
. Have a clear focus
. Anticipating trends & exploiting growing markets

Question 10

Intrapreneurship

Answer 10

. Involved people within a business creating or discovering new business opportunities, which leads to the creation of new parts of the business or even new businesses
-> involves empowering employees to think and act like entrepreneurs
-> the business encourages them to take risks, innovate and develop new ideas and projects that may benefit he business

Question 11

Why id Intrapreneurship helpful

Answer 11

Intrapreneurship allows businesses to tap into the creative potential of their employees and generate new products/services or processes that can drive growth and competitive advantage
• This helps to create a culture that generates a sense of ownership and engagement among employees which increases motivation and helps to retain top talent
• To promote intrapreneurship businesses may provide resources to employees or offer incentives/rewards for successful projects

Question 12

Barriers to entrepreneurship

Answer 12

entrepreneurship can be a challenging journey and many barriers can prevent individuals from starting or growing a successful business

Question 13

Barriers to entrepreneurship: entrepreneurial capacity

Answer 13

Entrepreneurial capacity refers to an individual’s ability to think creatively, take risks, and identify and seize business opportunities

Question 14

Barriers to entrepreneurship: access to finance

Answer 14

Many aspiring entrepreneurs struggle to secure the funding necessary to start or grow their businesses. Lack of access to finance is a major barrier to entrepreneurship, especially for those from disadvantaged backgrounds

Question 15

Barriers to entrepreneurship: Lack of training/know-how

Answer 15

Starting and growing a successful business requires a range of skills, including marketing, finance, management, and leadership. Aspiring entrepreneurs may struggle to develop a viable business plan, attract customers, or manage their finances effectively

Question 16

Barriers to entrepreneurship: fear of failure/lack of confidence

Answer 16

Entrepreneurship is inherently risky and
individuals/businesses may be held back by a fear of failure or a lack of confidence. They may worry about the financial risks involved in starting a business or fear the stigma of failre

Question 17

Entrepreneurs anticipate risk and uncertainty

Answer 17

Risk is something an entrepreneur can plan for:
. The probabilities of outcomes are known or at least understood and considered
. Risk taking is a conscious decision and often the greater risk the greater the reward in business

Question 18

Factors which typically cause uncertainty:

Answer 18

. Environmental factors
. Economic changes
. The entry of new competitors
. Changes in local and national legislation (laws)
. Changes in political party

Question 19

How successful entrepreneurs deal with risk

Answer 19

. Take calculated risks rather than gamble
. Spread risk by diversifying (don’t put “all eggs In one basket”)
. Look for higher returns to take account of the risks
. Keep going despite adversity - persistence is key

Question 20

Rewards for enterprise

Answer 20

. Profits (made by business)
. Capital gains (made by selling business)
. Self-esteem
. Personal development
. Sense of control
. Satisfaction from building something