Entrepreneurs and leaders 1.5

Question 1

What is an entrepreneur?

Answer 1

Someone who stops opportunity and shows initiative and willingness to take risks in order to benefit from potential rewards.

Question 2

What are the 5 main roles of an entrepreneur?

Answer 2

• Creating and setting up a business
• Running, expanding and setting up a business
• Innovation within a business
• Barriers to entrepreneurship
• Anticipating risk and uncertainty in the business environment

Question 3

Why is creating and setting up a business an important entrepreneurial role?

Answer 3

Identifying a gap in the market, carrying out some market research, set aims and objectives, create a business plan then raise finance may be important to start a business

Question 4

Why is running and developing a business an important entrepreneurial role?

Answer 4

• They need to be able to keep the business up to date with new legislation, assessing the market, bringing in new employees if the business grows etc

Question 5

Why is innovation an important entrepreneurial role?

Answer 5

They need to be able to think of new products and ways to stand out in the environment. May encourage employees to take risks and find new effective ways to complete a task - intrapreneurship

Question 6

What is intrapreneurship?

Answer 6

When an employee shows entrepreneurial skills within a business which may be through research etc

Question 7

What are some barriers for entrepreneurs?

Answer 7

Lack of finance to start up a business, lack of confidence, lack of skills and knowledge

Question 8

Why is overcoming barriers an important role for entrepreneurs?

Answer 8

Overcoming the barriers that were stated may increase an entrepreneurs reward by overcoming these risks which means greater rewards

Question 9

Why might anticipating risk and uncertainty be an important role to entrpreneurs?

Answer 9

An entrepreneur may want to consider the risk of making a business decisions and decide whether accepting the risk or trying to avoid is is the best way to go. The higher the risk, the higher the financial gain if successful.

Question 10

What are some common characteristics of an entrepreneur?

Answer 10

• Taking initiative
• Creative
• Hard-working
• Confident
• Risk-taker
• Resilient

Question 11

What specific skills do entrepreneurs needs tobe successful?

Answer 11

• Good communication skills when talking to stakeholders
• Team-working skills to share opinions and decision-making
• Problem-solving skills to identify a problem and come up with a solution
• Numeracy skills - calculating and interpreting financial data

Question 12

What are the two motives entrepreneurs have when setting up a business?

Answer 12

Financial and non-financial motives

Question 13

What are the 2 financial motives an entrepreneur could have?

Answer 13

Profit maximisation and profit satisficing

Question 14

What is a profit maximisation approach?

Answer 14

• Reducing costs or increases sales revenue through higher prices
• This is to generate as much profit as possible usually for the benefit of owners salaries and shareholder dividends

Question 15

What is a profit satisficing approach?

Answer 15

Making enough money to satisfy the needs of stakeholders and shareholders but nothing more

Question 16

What are some examples of non-financial motives that a business may have?

Answer 16

Ethical stance, social entrepreneurship, independence (being their own boss) and home working

Question 17

What are the 3 main difficulties of a business becoming a leader from an entrepreneur?

Answer 17

• Delegating responsibility because entrepreneurs have to be able to trust their colleagues to make responsible decisions.
• Developing emotional intelligence - Recognising other people’s emotions and be able to help people with their problems as well as motivating them
• Becoming less reactive - The entrepreneur needs to be able to consult with their employees without making them on their own