L8 l ENTREPRENEURSHIP l Characteristics of an entrepreneur

Question 1

What is an Entrepreneur?

Answer 1

A person who is able to spot an opportunity or gap in the market and then collects the necessary resources (factors of production) in order to take advantage of the opportunity identified to establish a business.

Question 2

How does an entrepreneur grow the business?

Answer 2

By creating a loyal customer base by satisfying the wants and needs of consumers.

Question 3

Push and Pull factors to Entrepreneurship?

Answer 3

Answers follow:

Question 4

Push factors to Entrepreneurship?

Answer 4

• Unemployment
• Job security
• No formal training (can’t find a job)
• Disagreement with current employer

Question 5

Pull factors to Entrepreneurship?

Answer 5

• Independence
• Recognition
• Self-actualization
• Personal employment and wealth

Question 6

Characteristics of an entrepreneur:

Answer 6

Questions and answers follow:

Question 7

What are a few example characteristics/traits of a entrepreneur?

Answer 7

Opportunity seeking

Creativity / Innovation

High-risk tolerance

Determination

Self-reliance

Flexibility

Motivation

Question 8

What are three characteristics that differentiate an entrepreneurial venture from the average business that just tries to survive?

Answer 8

Innovation

Growth potential

Sound objectives

Question 9

Elaborate on Innovation.

Answer 9

• A normal business just offers the original goods/services that the business starts with.
• While an entrepreneurial venture is continuously looking for better ways to improve their goods and services.

Question 10

Elaborate on Growth potential.

Answer 10

• A business that merely aims to survive is satisfied with the current customer base only.
• An entrepreneurial business venture is always looking for ways to grow by innovating and offering its products / services to a broader target market.

Question 11

Elaborate on Sound objectives?

Answer 11

An entrepreneurial venture formulates clear objectives and works towards achieving them. To reach these objectives, the business will need well-thought-out strategies. Some objectives may include:

• Entering new markets
• Developing existing markets by growing the current market share.