Role of the entrepreneur

Question 1

What is an entrepreneur

Answer 1

A person who sets up a business and takes risks to generate profit

Question 2

Roles of an entrepreneur

Answer 2

Spots a business opportunity
Organises the factors of production
Anticipates risks
Makes decisions in the business

Question 3

Define opportunity cost

Answer 3

The next best alternative foregone while making a decision

Question 4

Common opportunity cost for entrepreneurs

Answer 4

The security of having a regularly paying job

Question 5

Stages of starting a business

Answer 5

Idea > research > planning > finances > location > resources > launch

Question 6

Popular sources of generating ideas

Answer 6

Business experience
Personal experience
Skills
Lifestyle
Observation

Question 7

Define market research

Answer 7

Assessing the viability of a market, product or services using research techniques

Question 8

Define business plan

Answer 8

This is a written document that describes how a business, usually a new one will achieve its goals

Question 9

Who needs a business’ business plan to evaluate its success

Answer 9

Banks and investors

Question 10

Sources of finance for entrepreneurs

Answer 10

Bank loans
Friends and family
Venture capital
Business angels
Crowd funding

Question 11

Running and expanding the business needs

Answer 11

Financial management
Administration
Purchasing
Marketing
Managing people
Production

Question 12

Financial management

Answer 12

Managing the cash, chasing debts and managing monet in and out of the business

Question 13

Purchasing

Answer 13

Buying resources nad new services, ensuring good relationships with suppliers

Question 14

Administration

Answer 14

Keeping accurate records

Question 14

Marketing

Answer 14

Ensure close relations with customers while promoting the business. Ongoing market research is needed.

Question 15

Production

Answer 15

Ensure that the production levels match the orders while ensuring health and safety keeping good quality of the products

Question 16

Managing people

Answer 16

Ensure you have motivated staff

Question 17

Who is an intrapreneur

Answer 17

they are employees in large businesses
use entrepreneurial skills
Finds and develops ideas
have financial benefit for the business

Question 18

Why does the businesses take the risk of intrapreneurship

Answer 18

Can drive innovation
Uncovers commercially successful opportunities
Increases revenue

Question 19

How do Maslow and intrapreneurship link

Answer 19

The employees can reach their self-actualization needs by allowing employees to reach their full potential

Question 20

Benefits of intrapreneurship to the staff

Answer 20

No risk as they can try out new ideas without using their finances, resources etc
Can use skills learnt and become entrepreneurs in the future

Question 21

Ways to encourage Intrapreneurship in a business

Answer 21

Make risk taking and failure acceptable
Give employees ownership of projects
Train employees in innovation
Reward entrepreneurial thinking and activity
Give employees time outside their job

Question 22

What is risk?

Answer 22

The probability that things will not go as planned

Question 23

Common risks for entrepreneurs

Answer 23

Leaving a paying job to start a business (opportunity cost)

Question 24

How do successful entrepreneurs deal with risk?

Answer 24

.Taking calculated risk rather than to gamble
.Spread risk by diversifying
.Looking for higher returns to take account of the risks

Question 25

Define uncertainty

Answer 25

The inability to predict or the lack pr the lack of knowledge of future event or outcomes

Question 26

Types of events that are difficult to predict

Answer 26

A new competitor entering the market
Consumer tastes changing due to new social trends
The government introducing new laws
A natural disaster

Question 27

How successful entrepreneurs deal with uncertainty

Answer 27

Post pone investment projects
Have emergency funds available
Create contingency plans
Use external analysis tools such as PESTLE

Question 28

Rewards for entreprise

Answer 28

Profit
Capital gains
Self esteem
Personal development
Sense of control
Satisfaction from building something