Entrepreneurship

Question 1

What are four main roles that entrepreneurs do?

Answer 1

• innovating and inventing
• organisation
• risk taking
• decision making

Question 2

Business experiences as a reason to start up a business

Answer 2

Some start up businesses due to skills learnt from their current jobs or professions

Question 3

Personal experience as reasons to start up a business

Answer 3

This would be based of either a interest or a hobby

Question 4

Skills as a reason to start a business

Answer 4

Some people set up businesses due to interpersonal skills, artistic or technical abilities

Question 5

Lifestyle choices as reason to start up a business

Answer 5

Some people may set up a business in order tot be their own manager and control their own workload etc

Question 6

Spotting a gap s a reason to start up a business

Answer 6

Some people may see an opportunity and in everyday life and decided that they can meet this need regardless of the risks

Question 7

what are the seven steps in setting up a business

Answer 7

The idea
The research 
The planning 
The financing 
The location 
The resources
The launch

Question 8

Why does research need to be done during the stages of setting up?

Answer 8

The viability of a business has to be researched, e.g doing market research and analysing completion to decided whether the idea will be successful .

Other research could involve meeting bankers and business owners, to explore their additional aiding

Question 9

Location

Answer 9

This is dependent on the nature of the business, if it shall be online or physical store etc, where to keep factories etc

Question 10

Launch

Answer 10

When the trading starts, some organise an opening event,, this will help them build public relations

Question 11

Why does a business need financial management?

Answer 11

The business needs enough money to finance its operations , this will require managements To raise finance , manage its costs, profitability and cash flow.

Question 12

What admin costs will an entrepreneur have to cover?

Answer 12

• insurance
• legal set up
• tax
• business records

Question 13

What is intrapreneurship?

Answer 13

Refers to employees within the business who have the freedom and opportunity to develop their ideas and use their creativity to innovate

Question 14

How do entrepreneurs and intrapreneurs differ ?

Answer 14

Intra carry non of the financial risks which enter carry

Question 15

What sector are intras employed into?

Answer 15

Product development

Question 16

What do intrpreneurs do?

Answer 16

Create new and exciting products

Keep big businesses moving forward

Question 17

What are the advantages of employing intras?

Answer 17

• they can drive innovation and uncover new commercial opportunities
• a means of satisfying the self-actualisation needs of employees-this will help motivate staff and hopefully raise their productivity
• a number of rewards can be won if ground breaking products are achieved, this can attract free pr which will aid in promotion
• they get to experiment without the cost of failure , can use these entrepreneurial skills to become an entrepreneur

Question 18

How can entrepreneurs reduce risk and uncertainty

Answer 18

• by carrying out detailed research
• producing detailed plans
• analysing external influences
• developing contingency plans

Question 19

What are the barriers to success

Answer 19

• lack of entrepreneurial skills
• responsibility of becoming an employer
• legal barriers
• lack of ideas
• lack of finance
• aversion to risk
• competition

Question 20

Why is lack of finance a barrier to success?

Answer 20

The failure rate can be high for new business and financial institutions cannot afford to lose mone, so they may be more reluctant in lending money

Question 21

Give some examples of responsibilities that come with being an employer

Answer 21

• paying regular wages to employees
• controlling sick pay/ holiday pay etc
• health and safety issues must be considered
• employers have to pay national insurance contributions
• new employees need training

Question 22

Aversion to risk

Answer 22

Essentially a psychological barrier to enterprise and one that is difficult to overcome

Question 23

List the characteristics of an entrepreneurs

Answer 23

• self-confidence
• self-determination
• self-starter
• initiative
• commitment
• perseverance

Question 24

Skills of entrepreneurs

Answer 24

• organisation
• negotiating
• it skills
• managerial skills
• communication
• financial management
• decision making

Question 25

List three IT skills and entrepreneur will require

Answer 25

• using spreadsheets for budgets, cash flow forecasts etc
• setting up a business website
• communication with stakeholders

Question 26

What are the two motives of why people start a business

Answer 26

• financial

- non-financial

Question 27

List the financial motives

Answer 27

• profit maximisation

- profit satisfying

Question 28

List all the non-financial motives

Answer 28

• ethical stance
• independence
• social enterprise
• home working

Question 29

What is profit maximisation

Answer 29

• generating as much wealth as possible
• motivated by the financial returns
• therefore more likely to take risks

Question 30

What is profit satisfying

Answer 30

-to generate enough income for a comfortable lifestyle

Question 31

Ethical stance

Answer 31

-running a business to support their ethical beliefs and principles e.g climate change

Question 32

Independent and home work

Answer 32

They often want flexibility and full control of running their own business