Topic 1.5 Entrepreneur ship and leaders

Question 1

What is an Entrepreneur?

Answer 1

• Someone who sees an opportunity and tries to meet unsatisfied demand

Question 2

What does Entrepreneurship involve?

Answer 2

• Creating and setting up a business
• Running and expanding a business
• Innovation within a business

Question 3

What are some issues you may come across when setting up a business?

Answer 3

• Carry out marketing research to see if there is demand to justify expansion
• Raise necessary finance
• Introduce new products and services
• Invest in new technology,
• Take on more skilled staff

Question 4

What is Intrapreneurship?

Answer 4

• An employee within a larger
  business who thinks like an
  entrepreneur

Question 5

What are the main motives for starting a business?

Answer 5

• Want to be their own boss
• Want to earn their own money / profit
• Wanting to work in a more ethical way
• Wanting flexibility in hours or location

Question 6

What are the main barriers to entrepreneurship?

Answer 6

Personal: Lack of self esteem, Fear of failure
Financial: Lack of start-up capital, Lack of investment
Economic: Taxation, Unemployment
Political: Regulations, Lack of government support

Question 7

What is a sole trader / Sole proprietor?

Answer 7

• Business owned by one
  owner
• Can employ people but
  they will not be involved
  in control of business
• Has unlimited liability

Question 8

What are the advantages of setting up as a sole trader?

Answer 8

• Easy to set up
• Make decisions quickly – no
  agreement needed
• Don’t have to make any information
  about the company public
• They are their own boss.

Question 9

What are the disadvantages of setting up as a sole trader?

Answer 9

• Unlimited liability, this means
  that if the business has financial
  difficulties the sole trader could
  lose their own assets like their
  savings, house or car
• Difficult to raise money – seen as
  a risk
• Don’t have economies of scale
  (buying in bulk)
• No one to take over for ill-health
  or holidays

Question 10

What is a Partnership?

Answer 10

• Between 2 – 20 partners
• Joint ownership
• Profits shared

Question 11

What are the advantages of setting up as a partnership?

Answer 11

• Easy to set up
• Easier to raise capital
• No need to make public any
  information
• Partners contribute with range of
  skills
• Share problems and decisions