(PAPER 1) 1.5.2 Entrepreneurial Motives And Characteristics Flashcards
1
Q
Reasons why people set up businesses
A
FINANCIAL: Profit maximisation Profit satisfaction NON FINANCIAL: Social entrepreneurship Home working Independence Ethical stance
2
Q
Profit maximisation
A
When the entrepreneur aims to make as much profit at possible
- entrepreneurs are motivated by money
- likely to take bigger risks
- they may marginalise other stakeholders e.g. employees
3
Q
Profit satisficing
A
Where the entrepreneur aims to make enough profit to maintain their interest in the business
- may not want to take on the extra responsibility of expanding the business
- lifestyle business
4
Q
Ethical stance
A
Where an entrepreneur supports a moral belief
5
Q
Social entrepreneurship
A
E.g. fair trade, delux chocolate, the Eden projects
6
Q
Home working
A
Cheaper, convenient, flexibility
7
Q
Independence
A
- wants to be own boss, freedom to make own decisions, aren’t being told what to do
8
Q
characteristics of an entrepreneur
A
- risk taker
- motivated and determined
- creative
- self-belief
- confidence
9
Q
skills of an entrepreneur
A
- organisation
- communication
- problem solving
- team working
- numeracy and IT
