Unit2 Flashcards
List 5 characteristics of an entrepreneur
Risk talking
Determined
Self confidence
Creativity
Decision making
List 4 skills of an entrepreneur
Planning
Networking
Delegation
Risk talking
Define enterprise
Enterprise is when an individual or group of people take a risk and decide to start something new
Define entrepreneur
An entrepreneur is a person who spots a gap in the market and comes up with an idea that they can turn into a business in order to fill the gap. They take on the risk of setting up a business.
Why do people become entrepreneurs?
Being your own boss
Varied work days
Unemployed
More money
Government incentives
Inspired by other entrepreneurs
Following a passion
What are some rewards of becoming an entrepreneur
Control
Entrepreneurs have control over the business and make all the decisions
Income
Entrepreneurs believe that if their business idea is successful, they could earn more money than they would earn if they worked as employees for other business
Challenge
Entrepreneurs enjoy the challenge of setting up a business and working hard to make it successful
Define decision making as a characteristic of an entrepreneur
An entrepreneur makes quick and clear decisions. They weigh up the pros and cons of a situation and choose the best option for the business.
Define risk taking as a characteristic of an entrepreneur
Entrepreneurs take financial and personal risk and view failure as a learning experience. They ensure they take a calculated risk.
Define creativity as a characteristic of an entrepreneur
Entrepreneurs think outside the box and come up with new ideas and new ways of doing things.
What are some methods of encouraging intraprenuership?
Training programmes
Rewards like financial incentives
Workplace culture it’s okay to make mistakes
Teamwork
Resource provider
Access to the resources needed to help them come up with new ideas
Define determination as a characteristic of an entrepreneur
Entrepreneurs are determined to find a way of solving problem. They do not give up easily when they are faced with obstacles or failures.
Define self confidence as a characteristic of an entrepreneur
Entrepreneurs believe in themselves and their idea. They are not put off by other peoples opinions.
Explain intrapreneurship
Employees of a business act like entrepreneurs within that business. Employees come up with ideas, new ways of solving business problems or create a new production process, which helps to increase business profits or reduce costs.
Define being proactive as a skill of an entrepreneur
Enterprising people take action and make changes before they need to be made rather than waiting for a situation or a problem to arise.
Define networking as a skill of an entrepreneur
This skill involves meeting new people and exchanging information. The people you meet may be useful to you in your professional or social life.
Define realism as a skill of an entrepreneur
It is very important to that entrepreneurs recognise when things are going wrong and take action to make positive changes
Define risk management as a skill of an entrepreneur
Entrepreneurs can be exposed to commercial, physical and financial risks. They must identify these risks and find ways to reduce the likelihood of the risk occurring. Eg physical risks by installing a fire alarm, financial risks by taking our employee embezzlement insurance in case of employee theft.
What is management ?
Management is the process of combining personnel and physical resources to create an environment in which the planned goals of the organisation can be achieved through people
What are some managerial skills?
Leading
Motivating
Communicating
What is leading?
The ability to guide people and influence them to take a certain direction with their actions.
Providing direction, setting an example, delegating work
What are the features of a Democrat leadership?
Democratic managers delegate tasks to employees. They believe that their staff have the skills to complete tasks effectively.
Decision-making: Democratic leaders include employees when they make business decisions.
Trust: Democratic leaders trust their employees and empower them to make decisions on behalf of the business.
Motivation: Employees are motivated as they feel valued when they are delegated tasks and are involved in decision-making in the business. As a result, they work harder for the business.
What are 2 advantages and disadvantages of a democratic leadership?
Advantages
Democratic leadership encourages intrapreneurship. Employees are willing to come up with ideas that can help the business to increase sales or decrease business costs, e.g. a new product.
Employee Motivation
Employees have high levels of motivation, as they feel valued. This can lead to higher productivity levels among staff.
Disadvantages
Slow Decision-making Decision-making is slow as managers consult with their employees before making major business decisions.
Management Resentment
Some managers may resent empowering employees, as it reduces their control in the business. Managers may ignore employees’ suggestions, believing their own ideas are better.
What are the features of an autocratic leadership?
Authority: Autocratic leaders have complete power and control in the organisation. They give orders to subordinates and expect them to be carried out without question.
Decision-making: Autocratic leaders do not consult with employees when making decisions.
Trust: They do not trust employees and may believe that they are lazy and try to avoid work. Therefore, autocratic managers closely supervise the work of subordinates.
Motivation: Autocratic leaders use threats and punishment to motivate their employees to work harder. Employees are afraid to make mistakes, as they may feel that they could lose their job.
What are 2 advantages and disadvantages of a autocratic leadership?
Advantages
1 Quick Decision-making
Decisions can be made quickly as the autocratic leader does not consult with others. Therefore, the business does not miss out on opportunities in the market.
3 Improved Productivity Employees work hard as they know that they are being supervised by management. This can improve productivity in the workplace.
Disadvantages
1 Management Stress
The autocratic leader makes all business decisions and does not delegate tasks. This can lead to management stress and burnout.
2 Industrial Action
Employees may feel undervalued, which damages the relationship between management and employees. This may lead to increased industrial action, e.g. work to rule and official strikes.
What are the features of a Laissez-faire Leadership
Authority:
Laissez-faire managers set goals for employees and allow staff to decide how best to achieve those goals. While power is given to employees, overall responsibility rests with the manager.
Decision-making:
Laissez-faire managers empower employees to make decisions on behalf of the business. Management becomes involved only when very important decisions need to be made.
Trust: Management outlines the business objectives and trusts employees to work independently without close management supervision.
Motivation: Employees are highly motivated under this style of leadership, as they feel empowered to achieve the firm’s goals. They work hard for the benefit of the business and want the firm to be successful.
What are 2 advantages and disadvantages of a autocratic leadership?
Advantages
1 Employee Motivation Employee motivation is high among empowered employees, as they feel trusted by management. They work hard for the benefit of the business and to achieve the firm’s goals.
2 Improved Skills and Knowledge Delegated work helps employees to improve their skills and knowledge. This prepares them for future promotions in the business.
Disadvantages
1 Reduced Productivity Some employees may take advantage of the lack of regular management supervision. This can create tension among team members and reduce business productivity.
2 Poor Industrial Relations Management may blame employees for mistakes made or for not achieving targets. This can lead to poor industrial relations between management and staff.
Define delegation
Delegation refers to the transfer of responsibility from a manager to a subordinate example in a business a manager assigns accountability to the subordinate over a project
