Role of an entrepreneur 1.5.1

Question 1

what is a business

Answer 1

an organisation that exists to provide goods and services on a commercial base to customers

Question 2

what is the difference between a good and a service

Answer 2

a good is a physical product, whereas services are intangible products

Question 3

what is an entrepreneur

Answer 3

a person who is willing and able to create a new business idea or invention, and takes risks in pursuing its success

Question 4

what are the 3 main things entrepreneurs do

Answer 4

1. gather and coordinate resources that are necessary to set up a business
2. make business decisions that will determine to success or failure of their business
3. take risks (financially and personally) to allow the business to thrive

Question 5

what is intrapreneurship

Answer 5

the practice of promoting entrepreneurial thinkers within a business to encourage them to take risks, innovate, and develop new ideas

Question 6

benefits of intrapreneurship

Answer 6

allows businesses to tap into the creative potential of their employees to generate new product ideas, often leading to the business then having a competitive advantage

Question 7

give 2 examples of intrapreneurship

Answer 7

google employees developed Gmail in part of their 20% time project, and it has now become one of the most widely used email services in the world

a group of engineers at Sony proposed the idea of a video game to compete with Nintendo, and whilst the idea was dismissed by management at first, is was then launched and became one of the most popular game consoles of all time

Question 8

what are 4 barriers to entrepreneurship

Answer 8

1. entrepreneurial capacity (a persons ability to innovate)
2. fear of failure/lack of confidence
3. access to finance
4. lack of training

Question 9

what is the difference between a risk and an uncertainty

Answer 9

a risk can be planned for, and the probabilities of the outcome are known or considered, uncertainties cannot be calculated and prepared for because they are caused by unexpected factors that are out of an entrepreneurs hands

Question 10

which factors typically cause uncertainty

Answer 10

• environmental
• economic change
• new competitors
• changes in legislation
• changes in the governing political party