1.5.1-Role of an entrepreneur

Question 1

What are the 5 roles of an entrepreneur?

Answer 1

Creating and setting up a business
Running and expanding a business
Innovation
Overcoming barriers to entrepreneurship
Anticipating risk

Question 2

What is an entrepreneur?

Answer 2

A person who sets up and runs a new business taking on the financial risks associated

Question 3

What is intrapreneurship?

Answer 3

People within a business creating or discovering new business opportunities which leads to the creation of new parts of the business

Question 4

What does creating and setting up a business involve?

Answer 4

Spotting a business opportunity and turning it into a viable business.Good business ideas:
-solve a problem
-offer better/cheaper alternatives to existing products
-have a clear focus
-can be implemented profitably

Business ideas can come from entrepreneurs business experience,personal experiences of customers and research/observation of other products/brands

Question 5

What does running and expanding a business include?

Answer 5

Running a business often involves the entrepreneur carrying out a wide range of activities especially if the business has no staff

A business may expand to:
-respond to demand increase
-move into new markets to reduce risk of only operating in one
-to increase profit

Question 6

What does innovation include?

Answer 6

intraperenourship
Intraprenours seek to provide solutions to problems eg.low productivity or poor quality

Question 7

Anticipating risk and uncertainty as an entrepreneur

Answer 7

Risks include:
-the probability things will not go as well as planned
-the chance money invested will be lost
-the possibility the entrepreneur will be personally liable for the debts
Risk can be managed by:
-taking calculated risks rather than gamble
-spreading risk by diversifying(not having all eggs in one basket)
-keeping going despite adversity

Uncertainty is however caused by unpredictable/uncontrollable events that a business can’t control