Role Of An Entrepenuer Flashcards
What is an entrepreneur
An entrepreneur is a person who sets up a business and takes risks in the hope of a profit or reward. E.g to help others, charity, interest, passion or money
What are some risks associated with an entrepreneur business investment?
Entrepreneurs will often invest their own financial capital in a business and take on the risks associated with a business investment such as risk of failure, financial risk and opportunity cost - time.
Give some example of things entrepreneurs will need to carry out day to day to keep the business moving.
Deal with business finances
Communicate with customers
Marketing-social media,advertising
Find investors and keep in touch with them
Continue to learn
Negotiate with suppliers
Create marketing campaigns
Manage production
How can a business expand in the future?
Innovation-coming up with me ideas
Developing new products
Hire more staff
Open new stores
Make new contacts with customers
Make new contacts with suppliers
Make new contacts with investors
What are some barriers to entrepreneurship?
Limited access to finance
Lack of skills
Availability of materials
Lack of infrastructure/capacity
Difficulty planning
Define risk
Risk - this is the possibility that the business will have a lower than expected profit or even make a loss
Define uncertainty
Uncertainty - difficulty in predicting external events that could affect the business
Give some examples of risks
Cyber security and fraud
Environmental damage
Supply chain shocks
Changing regulation and legislation
Economic change
Give some examples of uncertainty
How will the market respond to change in the marketing mix? E.g price increase
Will a new business achieve its break-even output?
Will suppliers prove reliable if used for the first time?
How many employees will leave this year?
What is intrapreneurship?
Intrapreneurship is the act of behaving like an entrepreneur while working within a large organisation.
