1.5 Entrepreneurs and Leaders Flashcards
(31 cards)
What are the characteristics of an entrepreneur?
- self confident
- hard working
- being a self starter
- creative
- risk taker
- resilient
- initiative
What are the skills required by an entrepreneur?
- financial management
- hr management
- organising
- negotiating
- decision making
- IT
- communication
What are the 2 financial motives?
- profit max
- profit satisficing
What are non financial motives?
- Ethical stance
- social enterprise
- independence
- home working
What is an entrepreneur?
Spots business opportunity and sets up and runs a business, whilst being willing to take risks in order to benefit from the potential rewords
What are the roles of an entrepreneur?
- Creating and setting up a business
- running/expanding
- intrapreneurship
- anticipate risks and uncertainty
- barriers to entrepreneurship
What is an intrapreneur?
Employees who use entrepreneurial skills without risking their own money
What is limited liability?
When the owner and business are separate legal entities (incorporated)
What are the advantages of a sole trader?
- easy to set up
- quick decision making
- less capital needed
- taxed differently
- all profits kept
- independence
What are the advantages of a partnership?
- Easy to setup
- less capital needled per person
- information won’t be public
- variety of skill/shared workload
What are the advantages of an Ltd?
- limited liability
- raise share capital
- can employ managers
What are the advantages of a Plc?
- limited liability
- easy to raise capital
- better chance of getting a loan
- easier to grow and expand
What are the advantages of a franchise?
Franchisor
- choose who to employ
- trust
- expansion
- royalty payment
Franchisee
- reduces risk
- know local market
- business opportunity
- free training/ marketing
What are the disadvantages of a sole trader?
- unlimited liability
- difficult to raise finance
- no one to take over for holidays or sickness
What are the disadvantages of a partnership?
- unlimited liability
- disagreement
-> control, profit share, withdrawal
What are the disadvantages of an Ltd?
- accounts of the company are made public
- more difficult and expensive to set up
What are the disadvantages of a Plc?
- expensive
- has to prepare for annual accounts
- annual accounts are expensive
- takeover
What are the disadvantages of a franchise ?
Franchisee
- initial set up fees
- pay a percentage of profit back to franchisor
- high royalty
- takeover possibilities
- lots of workload
- loss of entrepreneurship
Franchisor
- needs to be consistent
- bad management may damage reputation
- pay for training and marketing
- risk of implementation in unknown location
What is social enterprise?
A business that trades for a social and or an environmental impact
What is a lifestyle business?
Influencers etc doing what you enjoy and turning it into a business
what does becoming a leader consist of?
- delegate responsibility
- develop emotional intelligence
- become less reactive
what does delegate responsibility mean?
- develop trust with managers
- consulting with employees to make the correct decisions
what does develop emotional intelligence mean?
- the ability to identify your emotions and recognise the emotions of others and formulate appropriate responses
- it keeps staff motivated
- understand that individuals in the business will be better at dealing with some issues more than the entrepreneur
what does become less reactive mean?
- when working alone they may make quicker decisions than with staff
- need to learn to consult staff (democratic leadership)
