1.2.1 Entrepreneurs

Question 1

What is an entrepreneur?

Answer 1

A person who spots an opportunity and shows initiative and a willingness to take risks in order to benefit from the potential rewards.

Question 2

What does creative destruction mean?

Answer 2

When something new kills something old.

Question 3

What are the steps when setting up a business?

Answer 3

Generating an idea, asking if the idea can add value, conducting market research, business plan, deciding on a legal structure, raising finance.

Question 4

What is a business plan?

Answer 4

It’s used internally by the entrepreneur but also externally by banks, external investors or those willing to provide grants.

Question 5

What does a business plan include?

Answer 5

The executive summary, products/ services, the market, marketing strategy, skills, operations and financial forecasts.

Question 6

How may an entrepreneur expand and develop a business?

Answer 6

Employee staff, delegate responsibility, move to bigger premises, change suppliers, expand product range.

Question 7

What is added value?

Answer 7

The ability to ensure that the value of the output is higher than the sum of the value of all the inputs.

Question 8

How can you add value?

Answer 8

Marketing to increase actual/ perceived value, unique selling point, enhancing customer experience.