1.5.1 Role of an Entrepreneur

Question 1

What is an entrepreneur?

Answer 1

A person who is willing and able to create a new business idea or invention & takes risks in pursuing success

Question 2

What do entreprenuers do?

Answer 2

They organise resources:
* An entrepreneur must be able to gather and coordinate the resources necessary to start and operate a business

They make business decisions
* Entrepreneurs must be able to make decisions that will determine the success or failure of their business

They take risks
* Entrepreneurship involves taking risks - financial, personal, or professional

• These risks can pay off with great rewards, but they can also lead to failure and financial loss

Question 3

What is intrapreneurship?

Answer 3

Refers to the practice of promoting entrepreneurial thinking and behaviour within an existing business

• It involves empowering employees to think & act like entrepreneurs
• The business encourages them to take risks, innovate, and develop new ideas and projects that may benefit the business

Question 4

What barriers are there to entreprenuership?

Answer 4

• Entrepreneural capacity
• Access to finance
• Lack of training/know-how
• Fear of failure/ lack of confidence

Question 5

What is entrepreneural capacity?

Answer 5

Refers to an individual’s ability to think creatively, take risks, identify & seize business opportunities

Question 6

What is access to finance?

Answer 6

• Where entrepreneurs struggle to secure the funding necessary to start or grow their businesses.

Lack of access to finance is a major barrier to entrepreneurship, especially for those from disadvantaged backgrounds

Question 7

What is lack of training/know how?

Answer 7

• Aspiring entrepreneurs may struggle to develop a viable business plan, attract customers, or manage their finances effectively

Question 8

What is fear of failure/lack of confidence?

Answer 8

• Entrepreneurs may be held back by a fear of failure or a lack of confidence.

They may worry about the financial risks involved in starting a business or fear the stigma of failure

Question 9

What is the difference between risk and uncertainty?

Answer 9

Risks can be calculated and prepared for
Uncertainties cannot as they are unexpected events

Question 10

What factors typically cause uncertainty?

Answer 10

• Environmental factors (e.g japanese tsunami)
• Economic changes (such as lockdown)
• Changes in local & national legislation (laws)
• Changes in the political party governing the country