Unit 1.3.1

Question 0

What are the three main things that motivate entrepreneurs?

Answer 0

• Profit
• Non profit
• Ethical stance

Question 1

What are the 5 main characteristics of a successful entrepreneur?

Answer 1

• Initiative
• Hard working
• Self confident and resilient
• Creativity
• Takes calculated risks

Question 2

Explain profit

Answer 2

• Improve lifestyle
• Secure a good standard of living
• The difference between sales revenue and costs

Question 3

Explain non profit/self-actualisation

Answer 3

• Being able to achieve a dream or ambition
• Being your own boss is a strong motivator
• The satisfaction of seeing a vision become real

Question 4

Explain ethical stance

Answer 4

• Entrepreneurs want to do the right thing

- Their businesses are primary centres on providing ethical and/or environmentally friendly products

Question 5

Explain autocratic, democratic and paternalistic

Answer 5

• Autocratic: make all decisions without consulting everyone else. Top-down one-way system
• Democratic: listen to other people’s ideas before reaching a decision. Two-way system of communication
• Paternalistic managers: Fatherlike towards family. Some consultation but ultimately the manger takes responsibility. Mostly top-down but with some two-way dialogue

Question 6

Explain McGregor’s theory X and Y

Answer 6

• Theory X: workforce dislike work and need direction and control without this and the threat of punishment they will avoid work
• Theory Y: workforce is capable of enjoying work and can be trusted to get on with hints without close supervision and respond to rewards

Question 14

Explain Maslow’s hierarchy of needs

Answer 14

Bottom to top:
Psychological - food water sex breathing sleep
Safety - family health security of body employment
Love/belonging - family friendship sexual intimacy
Esteem - self-esteem confidence achievement
Self actualisation - morality creativity problem solving