Motives And Characteristics

Question 1

Definition of entrepreneur

Answer 1

An entrepreneur is a person who sets up a business and takes risks in the hope of a profit, reward or for a social purpose e.g. to help the community

Question 2

Definition of Entrepreneurial characteristics

Answer 2

• An entrepreneurial characteristic is the skill, quality or trait of the person starting the business e.g. creativity

Question 3

Definition entrepreneurial motives

Answer 3

An entrepreneurial motive is the factor that drives a person to start a business e.g. to be their own boss

Question 4

Entrepreneurial characteristics

Answer 4

1. Creativity
2. Hard-work
3. Resilience
4. Initiative
5. Self-confidence
6. Risk-taking

Question 5

Creativity characteristic

Answer 5

Entrepreneurs need to be creative people, it helps when designing or inventing new products or services
• In dynamic markets the consumers are faced with a huge variety of products from trusted brand names

Question 6

Hard work characteristic

Answer 6

Starting a business can mean hard work. Some entrepreneurs will put 100s of hours into their own business to get it off the group and may have to continue working long hours to get the business established

Question 7

Resilience characteristic

Answer 7

Resilience means; strong, hardy, tough, robust, durable, feisty, quick to recover.
• An entrepreneur may get many knock backs before their business is a success.

Question 8

Initiative characteristic

Answer 8

• Initiative means; inventiveness, enterprise, ingenuity, or resourcefulness
• Many entrepreneurs may start a business because they have a good idea and want to take it to market

Question 9

Self-confidence characteristic

Answer 9

Self-confidence is how an entrepreneur feels about their own abilities.
• It is easy for an entrepreneur to become frustrated and give up if they lack self-confidence in their own ability and in their products and services

Question 10

Risk taking characteristic

Answer 10

Entrepreneurs who want to start their own business will need to be able to take a risk
• There is a risk of leaving a secure job to start up on your own

Question 11

Entrepreneurial skills

Answer 11

1. Communication
2. Team working
3. Problem solving
4. Organisation
5. Numeracy
6. IT

Question 12

Communication skills

Answer 12

Entrepreneurs need to be good communicators
• They may need to write exciting product descriptions on their websites
• They may have to talk to customers or clients fact to face or on the phone

Question 13

Team working skills

Answer 13

An entrepreneur may decide not to work alone but as part of a pair or a team
• Working with others has advantages and disadvantages

Question 14

Problem solving skills

Answer 14

Entrepreneurs will come across many problems when setting up and running their business, they will need to be good at working out cost effective solutions that help to move the business forwards.

Question 15

Organisation skills

Answer 15

Entrepreneurs need to be organised
• When first staring the business they will have to develop a range of systems for dealing with enquiries, suppliers and orders from customers

Question 16

Numeracy skills

Answer 16

They will need to complete their own tax returns when they first start. They will have to balance sales books, keep records of goods and services purchased to keep the business running.

Question 17

IT skills

Answer 17

Entrepreneurs need to be IT literate
• If the business is online they will need some web design skills

Question 18

Profit maximisation

Answer 18

An entrepreneur may aim to make the highest amount of profit possible
• This is the difference between revenue and costs, so they will seek to minimise costs and maximise revenue
• The advantages to a sole trader are larger wages can be drawn from the profit

Question 19

Profit satisficing

Answer 19

An entrepreneur may aim to make just enough profit to keep the business moving plus another aim at the same time

Question 20

Non financial motives

Answer 20

1.Independence
2. Flexibility
3. Ethical reasons
4. Social purpose
5. Personal challenge

Question 21

Indépendance

Answer 21

For many entrepreneurs the idea that they can work for themselves and no longer have to commute to work for someone else is all the motivation that they need to set up their own business

Question 22

Flexibility

Answer 22

• Many entrepreneurs seek to start their own business to gain flexibility in their life
• It can be hard to balance the needs of a family with the requirements of work

Question 23

Ethical reasons

Answer 23

• For example:
• Environmental trading at their
heart e.g. Starbucks
• Animal rights e.g. Body Shop
• Fair wages for workers in African nations e.g. Fairtrade products
• Organic, anti-GM crops
• Ethics e.g. Ethical superstore

Question 24

Social purposes

Answer 24

Social enterprises are businesses trading for social and environmental purposes.
• (Learn that bit)
• Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social and/or environmental purpose is absolutely central to what they do.

Question 25

Personal challenge

Answer 25

Some entrepreneurs may find working for another business as boring and unchallenging. They may decide to set up their own business instead