role of an entrepreneur Flashcards
entrepreneur
earn their living starting, owning, and working for their own business
employees
earn their living working for someone else’s business
business
an organisation that exists to provide goods and services on a commercial basis to customers
product
exists in nature or is made by human beings and is tangible
service
work that provides time, skills, or expertise and is intangible
economy
a country’s financial structure; the system that produces and distributes wealth
benefits
money earned and knowledge and experience gained
cost
money and time invested
cost/benefit analysis
listing costs and benefits in order to make decisions that are not emotional
opportunity
an idea that is based on what customers need or want and are willing to buy sufficiently often at a high enough price to sustain the business
profit
amount of money earned after costs are paid
enterprise
- the skills and abilities to take risks and create profits
- the creation of a business to meet the needs and wants of customers
a start up
a new business enterprise, formed by one or more entrepreneurs
intrapreneurship
involves people within a business, creating or discovering new business oppotunities, which leads to the creation of new parts of the business or even new business
roles played by entrepreneurs
- they are innovators as they try to make money out of a business idea
- they are responsible for organising other factors of production ( hiring, buying resources)
- have to make all the key decisions
- risk takers; this is because they risk loosing any money they put into the business if it fails
advantages of being an entrepreneur
- it means you work for yourself
- Could become rich E.G Richard Branson
- Chance to do something different
disadvantages of being an entrepreneur
- risky; the business could fail and leave debts to be paid off
- getting back into a normal job can be difficult, especially if the entrepreneur left a well paid job
stages of setting up a business
- business idea
- research
- planning
- financing
- location
- resources
- launch
what are the advantages of employing intrapreneurially staff?
- can drive innovation in a business and uncover new commercial opportunities
- will help motivate staff and hopefully raise production
- individuals benefit by getting the opportunity to experiment and be creative without having to meet the cost of failure
- should improve their job satisfaction
barriers to entrepreneurship
- lack of finance
- lack of entrepreneurial capacity
- legal barriers
- lack of ideas
- fear of failure
- aversion to risk
- corrupt
- unsupportive enviroment
