The characteristics of an entrepreneur

Question 1

Entrepreneur Definition:

Answer 1

a person who sets out to build a successful business in a new field.

Question 2

Why do people want to become an entrepreneur?

Answer 2

The desire to be your own boss is a major reason
for people starting their own business. Some people
want the freedom to choose when and where they
work, with whom they work and whether to work
from home. The great attraction is the belief that
they will have more control over their life. Of
course, they are usually also motivated by the
financial rewards they believe can be gained from
establishing a business.
The simplest but most significant question a
prospective business owner must ask is: ‘Why do
I want to go into business?’ The business owner’s
personality, skills and ambitions need to be analysed because the future success of the business rests largely
with the owner. For this reason, people should carefully consider the advantages and disadvantages of being
self-employed.

Question 3

Advantages of being self-employed bpcicdoaep

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Answer 3

1 - Challenge, reward and satisfaction
2 - Employ family members
3 - Increase personal wealth
4 - Be your own boss — independence
5 - Possibility of making a profit
6 - Develop own creative ideas
7 - Achieve a better lifestyle
8 - Possible tax advantages
9 - Contribute to society
10 - Overcome unemployment

Question 4

Disadvantages of being self-employed

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Answer 4

• Hard work and long hours
• Other ‘bosses’ — customers, suppliers, financiers
• Income may fluctuate and be uncertain
• Risk of failure
• Stress and worry
• High levels of responsibility
• Constantly solving problems
• Difficulty in selling the business

Question 5

What’s an example of someone who was an entrepreneur?

Answer 5

Bill Gates, co-founder of Microsoft Corporation, is a classic example of an entrepreneur. While a teenager,
he decided to take the risk of establishing his own business and launched Microsoft. Today Microsoft
software is used to operate millions of computers worldwide.

Question 6

What do entrepreneurs do?

Answer 6

They organised their business, undertook the necessary arrangements for it to operate, and were prepared to take a risk. The size of the profits may differ, but they possess identical entrepreneurial qualities: the ability to see and take advantage of an opportunity; the ability to establish a shared vision; initiative, innovation and resilience; and an appreciation of the role of failure in success.

Question 7

What are some Characteristics of an entrepreneur?

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Answer 7

• Seeing and taking advantage of an opportunity
• Establishing a shared vision
• Demonstrating initiative, innovation and resilience
• Appreciating the role of failure in success

Question 8

Seeing and taking advantage of an opportunity:

Answer 8

Successful entrepreneurs are able to identify and take advantage of an opportunity. Identifying a business
opportunity is not just about having an idea. An opportunity is something that a person can see as an
avenue to success. It is often identified when a person feels they can provide goods or services in a better
or different way from that already in the market
- Satisfying what’s in demand

Question 9

What should business owners select a business about?

Answer 9

Business owners should try to select a business
opportunity that suits their personality and builds on their strengths. If you look around, you will see so many
opportunities for starting a business. Potential business
owners are always searching for opportunities, including
ideas for new products, new customers and new ways
of running businesses. There are many sources of
opportunities for business ideas, including innovation and entrepreneurship, recognising and taking advantage of market opportunities, changing customer needs, research and development, technological development and global markets. Successful business managers and entrepreneurs will be very quick to seize their opportunities.

Question 10

Inspiration for ideas and opportunities can be generated by:

Answer 10

The source of a business idea may come from a person’s
own experiences, interests, abilities or imagination.
Inspiration for ideas and opportunities can be generated by:
* listening to people, particularly for ideas on goods or
services that may not be readily available
* reading magazines and books and researching on the
internet
* visiting displays and exhibitions in areas such as
new technology or new products from overseas
* accessing government statistics and research information
* identifying a ‘gap in the market’ — that is, a demand not currently being satisfied
* determining improvements that could be made to an existing product.

Question 11

What is key to establishing a lucrative business?

Answer 11

The successful identification of a gap in the market is key to establishing a lucrative business. It means
that the new business provides something not already available. Breaking into a market that is already well
served means that the new business has to do something exceptional to draw customers away from existing businesses.

Question 12

Establishing a shared vision:

Answer 12

An important quality for an entrepreneur is the ability
to set objectives and have a vision for the business’s
future. Vision refers to the clear, shared sense of
direction that allows people to achieve a common
goal. A vision involves creating a short statement
that will guide the business over the next few years.
It should be capable of motivating everyone within the
business to achieve a common goal.

Question 13

What do successful entrepreneurs have in common?

Answer 13

Successful entrepreneurs have a clear understanding
or hope of what the business will be like in the future.
This gives the business a clear direction. Having a
shared vision means that everyone in the business
works together, as a team, to develop and then
accomplish a goal. When this happens, it is much
more likely that staff will enthusiastically contribute
to making sure the vision is realised.

Question 14

What is the most effective way managers can share their vision?

Answer 14

The most effective way managers can share their
vision for the business is through the organisation’s
goals. Knowing where the business is headed and what
it is trying to achieve helps employees understand
where the manager wishes to take the business.
Without a shared vision a business will have no
sense of cooperation and commitment, which makes
achieving goals impossible.

Question 15

Demonstrating initiative, innovation and resilience:

Answer 15

A successful entrepreneur demonstrates initiative, innovation and resilience. Initiative refers to the
ability to be resourceful and decide, in an independent way, what to do and when to do it. When you
show initiative, you do things without being told; you find out what you need to know; you spot and take
advantage of opportunities; and, you keep going when things get tough. Initiative requires resilience and
determination.
Running a business can be very stressful and unpredictable. Successful entrepreneurs, therefore, need to be resilient. Resilience refers to the ability to cope with the ups and downs, adapt well to change and
bounce back from challenges.

Question 16

What is innovation, and why is it important?

Answer 16

Innovation is often what excites and motivates a businessperson to establish a business. Innovation
generally refers to the process of creating a new or significantly improved product, service or process (way
of doing something). An invention refers to the development of something that is totally new, but innovation and invention both result in the creation of something unique. Ideas for new products or improvements to existing products will often provide the opportunity for the establishment of a new business.

Innovation is certainly important at the beginning stages of a business, but many successful businesses
have the ability to innovate and continually bring new benefits to the customer. Many business concepts are
an innovation of an existing product. Tablet computers, for example, came into existence through people
making technical advances with an established product.

Question 17

Appreciating the role of failure in success:

Answer 17

Failure happens to everyone. In fact, every successful entrepreneur has experienced failure. Entrepreneurs
do not fear failure; instead, they appreciate the role of failure in success and view it as an opportunity to
learn. Failure can teach us a lot. Everything leading up to failure is a lesson: the choices you made; the
reasons behind your decision, and so on. What distinguishes a successful entrepreneur from a mediocre one is whether they get discouraged and contemplate giving up when failure arises or whether they embrace failure, learn from it and grow.