entrepreneurs and leaders Flashcards
entrepreneur definition
person who sets up a business
take on risks of new business activity with aim to gain reward (profit)
setp 1. creating and setting up a business
they need to identify gap in market and a need for product
may do this through market research
once feel they have good idea, will write up a business plan(document that outlines aims and objectives of business and how they will achieve them)
need to work out location of business
resources required
bringing innovation to the business world
need to think of new products or ways of doing things and be prepared to take risks
once set up, entrepreneur may then employ staff who may then help them think of ideas
barriers and solutions to entrepreneurship
lack of money-business may not end up starting as start up costs are too high
e.g investment in large machinery and technology
can overcome it by raising capital e.g getting loan from bank, business angels, peer to peer lenders
risk of being rejected if bank find idea too risky
entrepreneur lacks confidence.fear of failure not worth gamble for some people
solution-being confeint that business will succeed and vocalting that too several people
may not have the training of knowing how to run a bsuienss
may not know enough
solution-learning as much as they can before they start their business
risks
things that could go wrong within control
uncertainty’s
things that could go wrong/external factors that are unpredictable
e.g hurricane
characteristics of a successful entrepreneur
hard working-must sort out issues themselves so must be happy to do so
risk taker-need to be willing to try things out that may have a negative outcome
resilient-need to have ability to keep going
good communicator
problem solving skills
what are the financial motives of setting up a business
earn money to support themselves
a lot motiveated by knwoing they can earn more then they would in employment
profit maxinimsation
means making as much profit as possible
acheived by reducing costs to their minimum and increasing sales revenue to their max
profit satisfycing
making enough profit but not pushing to maximise it
what is a life style business
beaing happy with lifestyle of bsuienss
non finanical motives of being an entrepreneur
craving independence-not having to report back to a boss
having free to puruse their own ideas
flexibility-working as many hours as they choose
opportunity to work from home
enjoy challenge of building up a business
entrepreneur developing into a leader
if business idea success, then may need to start employing more staff to help run business
more staff, entrepreneur has to develop into a leader
what does an entrepreneur have to be prepared for when moving into a leader
Delegate responsibility-delegate reposbilty to staff for certain functions.need to develop trust that they will carry out tasks as well as they did
may find it easier to delegate repsonsibilty by hiring someone with simialr beleife, values as them
Develop emotional intelligence-being able to manage your own emotions but also others
be able to respond to them appopriately
need to learn to listen and have open mind
Become less reactive-when by themself could have been very reactive-made decisions quickly
now with staff may need to consult them first before many decisoons and making sure they are comfotable with decisions being made
what is intrepreneurship
entrepreneurial qualities whcih employees might show in larger companies
