1.5 Entrepreneurs and Leaders Flashcards
Entrepreneur definition
a person willing and able to create a business idea and willing to take risks
Intrapreneurship
Promoting entrepreneurial thinking within the business
Barriers to entreprenurship
Lack of finance
Lack of know how
fear of failure
Entrepreneur skills
Communication
team working
problem solving
organisation
Entrepreneur Characteristics
Creativity
hard working
resilience
initiative
risk taker
confidence
Financial reasons for starting a business with examples
profit maximisation - Zara
profit satisficing- Patagonia
Non-financial reasons for starting a business
Ethical stance
social entrepreneurship
flexible working
independence
personal satisfaction
Main 2 business objectives
Survival
Profit maximisation
Forms of businesses
Sole trader
partnership
private ltd company
public ltd company
franchise
sole trader pros and cons
cheap and easy to set up
owner has full control
unlimited liability- owners personal assets are at risk
limited access to finance
limited skillset
Partnership definition, pros cons
two or more people forming a business
easy to set up
shared responsibility
increased access to finance
unlimited liability
shared profits
potential clash
Private Ltd Company (LTD) definition, pros cons
A firm where an agreement has to be met to sell shares
Limited liability
access the greater finance
professional image
expensive and time consuming to set up (legal requirements)
shareholders lose control of firm as they sell
Franchising defintion
when someone buys the rights to use a larger companies image, brand and name
Public Limited Company (PLC) definition, pros cons
A company where shares are sold on the stock exchange
large access to finance
shared risk
increased liquidity as shares are bought and sold easily
benefits to a franchisee
they benefit from national advertising from being a well known name
less initial investment required as its already built up
lower risk than a start up as product is proven
