entrepreneus Flashcards
entrepeaurn definiton
person who sets up a business
take on risks of new busienss activity in hope to gain reward (profit)
how do entrepreurs create and set up a business
find a gap in makret by use of market rersearch
once confident got good idea, put togteher a busienss plan(outlines aims and objectives of busienss and how they will be achieved)
have to research idea fully and make sure tehy have thought of everything e.g marketing mix (product place promotion price)
where the business will be located
what materials will be used for product/ will it be enviorentally freindly
what pricing strategies will entrepreur use e.g price simming or pentration price, compeittion pricing, predatory pricing, cost plus pricing
form of leadership they want to have e.g sole trader, partnership etc
running and developing the business for an entrereneur
to rn business need to keep things up to date e.g law, business sales, marketing strategies etc
usually will continue doing marketing research to check for changes that need to be made
needs to continue setting aims and objectives for busienss as it grows
use this to monitor perfomance/is the busienss on the right track
as gets bigger, may be harder for entrepeaur to handle all jobs meaning may have to employ more workers to help
bringinng innovation to business world
need to be innovative-need to think of new ideas/whats goign to their busienss stand out from the rest
need to be prepared to take on rikss
once set up and runni g, entreperur may encourage their new workers ti help come up with innotave ideas to help the busienss grow and be successful
may want them to figure out best way to compelete their tasks the most efficiently
intraperneurship
where employee shows entrepeurnail skills within a business e.g having new ideas
what barriers may enterprenur have wehn starting up a busienss
may never happen due to lack of money, if start up costs are high e.g for new machniery, technology so entrepeunr will gave to make lost of capital. may have to do this by getting bank loan but risk of being rejected if bank sees idea as too risky
lacks confidence.fear of failure and the risl f losing their investment or not having secure wage may be too big of a risk for some people
entrepreur needs ot coverome this by believing that they can succeed, communcating this confidence with other people e.g customers
they wont help if dont belve that the owner belives it can be successful
may not have the training or enough knowledge about how to run a business to make it succeed.
overcome this, must make sure, they know as much abot running a busienss as they can
e.g could do an entrepreunur course, could get a similr job to understand how it all works, could do specific training relating to product they will be selling
study tip:maddie cooks tagillatelli
anticiapting risk and uncertainitiny
entrepreunur can weigh up between negative effect on bsuienss or postive effect on busienss if it does well
ervey business decsision carries an element of risk
ofternr considered, greater the risk, greater the fincial gain
uncertainiting and examples
often unpreddicatbale and beyond entrepreunrs control
extnerl facotrs include
health scares;diseases increasing
political factors: change taxation, fuding
price sjhoscks -price of oil falling
changes in legisaltion
charcterseicsts of an entrepreurn
hard working-may need sort out probelms any time of day or nright. no fixed hourse and during weeekends
if problem needs fixing, may be no one else to delegate too, so they need to be good at doign it themseleves
creative-think of new ideas and look for business opportunities
self confident-believe in their own abilites to be succesfful
risk taker-need to be willing to try new things
resiltent-need to be able to keep going and remain optimistic wven wehn things arent going well
entrepreneur skpecific skills-things they canlearnn to do better as go along
team working skills-share reposnisbilites and opions of others, be reliable
good at probelm skills-being able to clearly identify a probelm, assess different colutions and put a plan into action
main motive for setting up a business to entrepreneus
can earn more than they would in employemnt
what is profit maximisation
making as much profit as possible
reducing costs to minimum and increasing reveue to maximum
mean get more for their salary
high dividedns if limited company
what is profit satisfying
making enough profit, but not pushing to maximise it
if dont have shareholdes, entreprenuer may be happy in making enough profit to have a happy lifestyle and no more
may not be motiaved to keep increasing profits year by year-liestyle busienss
if have shareholer, means making enough profit to keep shareholders satified but no more
what is a lifetyle business
busienss that is of a perosnal interst of the owner over profits
non-financial motives
crave independence of runnig own business brings -not having to report to a boss and having the freedom to persua their own ideas
make worker have work-life balance they want
fleixibility brought by being own boss-no foxed hours. can work when you choose
can take time off without having permission
opporutinity to work from home
enjoy challenge of builiding up a busienss themselves-more of an accomplishemnt to sucecesfully build a business alone
