THEME 1: 1.5 ENTREPRENEURS AND LEADERS Flashcards
what is an ENTREPRENEUR?
An entrepreneur is a risk-taker who is willing to set up a business venture.
what is an ENTERPRISE?
Enterprise is the demonstration of initiative, risk, flair, dedication, and skill in setting up a business.
[new businesses are formed and new products/ services created and brought to the market]
what are entrepreneurial CHARACTERISTICS?
characteristics are PERSONALITY TRAITS
what are entrepreneurial SKILLS?
skills are ABILITIES
what does SPOTTING TRENDS and ANTICIPATING THEIR IMPACT mean?
a social trend becomes more popular, so there is a rise of the no. of people that MAY impact the business.
what is IDENTIFYING A GAP IN THE MARKET mean and what can you use to do this?
noticing an area in need of an innovative idea to provide more variety of options and can use a MARKET MAP to find the right balance.
what does COPYING IDEAS FROM OTHER COUNTRIES mean?
use of INTELLECTUAL PROPERTY which are: COPYRIGHT (for written work)
PATENT (for designs)
TRADEMARK (for logos)
what is FINANCIAL GAIN FOR THEMSELVES demonstrate?
[financial motives]
some people calculate that financial is greater working for themselves than for others.
what is PROFIT MAXIMISATION?
[financial motive]
profit can be a major motivation and is the difference between sale revenue and costs; it rewards successful entrepreneurs for their hard work so they make as much profit as possible.
what is PROFIT SATISFICING?
[financial motive]
some entrepreneurs aren’t solely motivated by the size of profits. They may not be interested in taking on the additional risk.
what is ETHICAL STANCE?
[non financial motives]
having a social conscience, provide ethical or environmentally friendly products/ services.
what is SOCIAL ENTERPRISE?
[non-financial motive]
achieving benefits for society.
what is INDEPENDENCE?
[non-financial motive]
taking your own decisions.
what is HOME WORKING?
[non-financial motive]
control of your own working hours.
what is INTRAPRENEURSHIP?
Intrapreneurship focuses on the employees within a business that have many of the attributes of entrepreneurs.
what IS an INTRAPRENEUR?
An Intrapreneur is someone within the business that takes risks in an effort to solve a given problem. They bring innovation to existing businesses rather than to business start ups.
- SELF-DRIVEN
- PROACTIVE
- ACTION-ORIENTED
what DOES an INTRAPRENEUR do?
-CONDUCT RESEARCH
-CREATE EFFECTIVE WORKFLOW DIAGRAMS
-STRATEGIZE COMPANY CULTURE ADVANCEMENT
-TAKE INITIATIVE
what are the 3 ROLES OF AN ENTREPRENEUR?
● INNOVATE
● ORGANISE
● MAKE KEY DECISIONS
what does INNOVATE mean?
this might involve spotting a gap or making your product/ service different from others.
what does ORGANISE mean?
they make sure there are enough resources, such as labour equipment, to make the business viable (successful)
what does MAKE KEY DECISIONS MEAN?
make important decisions such as which is the best source of finance? Which is the best product design or best method of production.
what are SMART objectives?
SPECIFIC- clear and easily defined
MEASURABLE- objectives quantifiable
ACHIEVABLE- agree on objectives needed
REALISTIC- not conflicting with other objectives
TIME BOUND- based on explicit timescales
what does PIGSS stand for?
PROFIT
INCREASE MARKET SHARE
GROWTH
SOCIAL/ETHICAL
SURVIVAL
what are COMMON objectives?
●profit maximisation(more products are released)
●diversification(establish the USP of the business)
●break even( firm’s total revenue = total costs)
●survival (during early years of trading)
factors DETERMINING business objectives
●size and status
●short term vs long term
●consumer pressure
●economic environment
●importance of profit
●pressure group activity
(e.g. green peace)
●employee welfare
what is the PUBLIC sector?
●run by LOCAL & CENTRAL government
●funded by TAX REVENUE
●e.g. NHS, SCHOOLS, DFE (department of education)
what is the PRIVATE sector?
●run by PRIVATE INDIVIDUALS
●funded by their own profits
●e.g. soletrader, partnership, LTD(private limited company) and PLC (public limited company)
