1.2.1 role of an entrepreneur in the economy

Question 1

What is creative destruction?

Answer 1

The process where new innovations and technologies disrupt and replace older ones, leading to both destruction + creation of new economic structures and opportunities.

Question 2

Who proposed the idea of creative destruction?

Answer 2

Economist, Schumpeter.

Question 3

What is the role of an entrepreneur?

Answer 3

To create ideas and put them into action by taking risks. They have to consider what the best steps are for a business, and need to consider past mistakes, potential profitability and potential gaps in the market.

Question 4

What is the incentive for an entrepreneur?

Answer 4

Profit. They want to avoid loss and gain profit, making them want to innvoate.

Question 5

What are some non-financial motives for entrepreneurs? [2]

Answer 5

• Ethical stance and social entrepreneurship
• Independence and working from home