What Motivates Entrepreneurs Flashcards
Profit
The more profit the business makes, the richer the owner will become
Link between their effort and their financial reward
Profit
Profit = total revenue - total cost
Profit
Sales revenue less all the costs of production.
It helps to compensate the entrepreneur for carrying the risks associated with running a business
Motives
The factors that the encourage an entrepreneur to go into business and take particular decision
Non profit motives
Reasons for setting up in business which are not linked to making profit, for example control over working hours or self fulfilment
Non profit motives
Control over working hours or location Continuing a family business Self fulfilment Control over your work Creativity Making money form a hobby
Control over working hours or location
They can work in a way that suits them
Can decide when they will work the hours necessary for their business
Work from home rather than travel to a workplace
Continuing family business
Set up by one member of a family and passed on to the next generation when the founder wanted to retire
Feel committed to the family firm and want to keep it going in the future
Self fulfilment
To feel satisfied by the work that you do
Feel proud of what they have achieved
Control over your work
Have to decide which activities you want to focus on
Can also decide which tasks to do at a particular time which isn’t always possible if you are non self employed
Making money form a hobby
Develop skills and experience, pursuing a personal interest can sometimes build a new career from it
Creativity
Able to have ideas and express them through their work
Try new ways of working, or designing unique features of the service that they provide
Ethical motives
Linked to do what is right
Setting up a business or organisation which benefits a section of community or committed to ethical employment and sourcing activities
