entrepreneurial motives and characteristics Flashcards
characteristics of an entrepreneur
- risk taker
- decision maker
- self starting/decisive
- focussed
- results orientated
- visionary
- passionate
- determined + persistent
skills of an entrepreneur
- communication
- financial skills
- literacy
- numeracy
- info technology
- organisation
- problem Solving
- team working
why do people set up a business
- fulfil a dream
- make money
- innovation
- provide a service
- be own boss
- support a community
2 financial motives to set up a business
profit maximisation
profit satisfaction
profit maximisation
to make as much profit as possible
profit = TR-TC (total revenue-total cost)
profit satisfaction
- to make enough profit to be satisfied but not purely motivated by profit
- may profit satisfy to maintain a work life balance
4 non financial motives
- ethical stance
- social entrepreneurship
- independence
- home-working
ethical stance
provide good or service that meets ethical beliefs e.g. cosmetics not tested on animals
social entrepreneurship
motivated by supporting a cause instead of making a profit
how does independance motivate
- be own boss
- make own decisions
how does homeworking motivate
- match family commitments to work commitments
- work life balance
entrepreneur
a person who spots a business opportunity and shows initiative and a willingness to take risk by setting up a business
opportunity cost
the benefit lost from the next best alternative forgone or given up
trade off
accepting less of one thing in order to gain more of something else
trade off example
trade off training to increase spending on promotion
