Stakeholders Flashcards
What is a stakeholder?
People who are affected by how a business is run.
Entrepreneur, investor, employer, employee, manager, producer, consumer, service provider, interest group
What is an entrepreneur?
Somebody who spots a gap in the market, and uses their initiative to set up a business to make money. They take financial and personal risk
What is an investor?
Someone who provides capital to the entrepreneur. They want a return on their investment: either a share of profits (equity capital) or their investment back with interest (debt capital)
What is an employer?
They hire workers. The entrepreneur becomes the employer when they can no longer do the work themselves. They pay employees with wages, commission or BIK
What is a manager?
They run the business. They help the business/entrepreneur achieve objectives. They must manage and use resources effectively and be able to lead/motivate. They should communicate well with all stakeholders.
What is a producer?
They make the finished product for the consumers from raw materials. They work in the secondary sector.
What are the factors or production?
Land
Labour
Capital
Enterprise
What is a consumer?
They buy the products and services for their own use. They provide the entrepreneur with feedback (market research) which is used to make the business better and make more profit.
The consumer depends on producers and vice versa.
What is a service provider?
They work in the tertiary sector. They offer expert service and help the entrepreneur. They allow the entrepreneur to operate easily. e.g. Accountants, solicitors
What are interest groups?
They are an organisation which campaigns for a common goal. They pressure the decision makers and by joining forces they have more money and talent, and therefore more likely to be listened to. E.g. Green peace
