ch 20 Flashcards
What are some of the Characteristic an Entrepreneur needs?
-Self-confidence(successful entrepreneurs are people who believe that they are going to succeed)
-Self-determination
-Being a self-starter
-Judgement(being able tot take in information and listen to advice)
-Commitment(working longer hours and more stressful. successful entrepreneur are committed to what they do)
-Perseverance(Entrepreneurs are able to get through the bad times and set backs)
-Initiative
What are the skills required by an entrepreneur?
-Organizing
-Communication
Managing people
-Financial management
-Decision making
-Negotiating
-I.T. skills
Why would an entrepreneur need financial management skills?
involves people is often budgeting, cash-flow forecasting, chasing debts, keeping up-to-date financial records
the main aim is to make sure the business has enough money whenever it is needed
Why would an entrepreneur need to be able to manage people?
managing people is often one of the most difficult tasks when running a business.
Entrepreneurs need to recruit the ‘right people’ in the first place and then show clear leadership and direction people are easier to manage when their needs are met and if they are treated with respect and value
negotiating skills?
agreeing the terms of a contract such as agreeing a price for undertaking some work or completing an order for a customer, negotiating with supplier and employees
They need to be able to get their point across in a calm and assertive manner, develop arguments with reasoning, know when to compromise and try to arrive at a settlement that is agreeable to both parties
communicate?
interacting with a wide range of stakeholders eg. customers, employees, suppliers.
having Charm, courtesy, and assertiveness are useful attributes
Be able to write letters ,memos and reports, fill in forms etc
Presentation skills may be needed for sales pitches
organised
organising and co-ordinating a wide range of a wide range of resources order to get the business running, planning, scheduling, giving orders, prioritizing etc.
if things go wrong entrepreneurs will sometime be ‘fire-fighting’ that is resolving conflict, dealing with business issues and sorting out problems
Why would an entrepreneur need to have good decision making?
-most are low-level, day-to-day decision like what stock needs ordering
-Some are strategic, which are important and have a long-term effects on the business e.g. whether to more premise to a new location
-decision making and problem solving require entrepreneurs to process, analyse and evaluate information
Why would an Entrepreneur need to have I.T. skills?
Entrepreneurs will be able to run their business more efficiently if they have good I.T. skills
e.g. setting up filing systems, emailing stakeholders, using spreadsheets to prepare budget and cash-flow forecast etc.
why become a entrepreneur
Financial motives –> profit is the driving force behind many entrepreneurs and most businesses would not exist if it wasn’t for the likelihood of making profit
Non-financial motives –> some people set up businesses for other motives they see as important or even more important then money, they need money for the business to operate however the main driving force is non-financial
What is a lifestyle business?
a business that aims to make enough money and provide the flexibility needed to support a particular lifestyle for the owner
What are some financial motives for setting up a business?
profit maximization –> some entrepreneurs try to make as much profit as they possibly can in a given period of time –> main motivator is money and main focus is financial returns –> more willing to take bigger risks and try to marginalize the needs of other stake holders
Profit satisfying –> aim to make enough profit to maintain their interest in the business, dont go for maximum profits as they dont want the responsibility of expanding the business –> run a lifestyle business, this allows the entrepreneur to pursue other areas of their life e.g. family
What some non-financial motive for setting up a business?
-Ethical stance –> to support their moral belief they possess e.g. vegetarian setting up a vegetarian
-Social Enterprise –> trade with the aim of improving human and environmental well-being (non-profit organisation) e.g. Fair trade
-Independence –> many people want to be their own boss, freedom to make their own decision
-Home working –> benefits include time and expense spent travelling to work is elimated and they also enjoy more flexibility e.g. take breaks when you want
