1.5.1 Role of an entrepreneur

Question 1

What are the key steps in creating a business?

Answer 1

Spotting a market opportunity

Writing a business plan

Securing financing

Choosing a legal structure

Launching the business

Question 2

What are common growth strategies for businesses

Answer 2

Organic growth (new products/markets)

Inorganic growth (mergers/acquisitions)

Franchising

E-commerce expansion

Question 3

What financial factors are crucial when running a business?

Answer 3

✔ Cash flow management
✔ Profit margins
✔ Investment in R&D
✔ Cost control

Question 4

What is intrapreneurship?

Answer 4

Employees acting like entrepreneurs within a company to develop new ideas (e.g., Google’s “20% time” policy).

Question 5

Why is innovation important for businesses?

Answer 5

✔ Competitive advantage
✔ Higher profits
✔ Adapt to market changes
✔ Attract investors

Question 6

What are common barriers to starting a business?

Answer 6

Lack of capital

Fear of failure

Market competition

Legal regulations

Limited skills/experience

Question 7

How can access to finance be a barrier?

Answer 7

Banks may reject loans for startups without collateral or track records.

Question 8

Distinguish between risk and uncertainty

Answer 8

Risk: Measurable (e.g., 30% chance of a new product failing)

Uncertainty: Unpredictable (e.g., sudden economic recession)

Question 9

How can businesses anticipate risks?

Answer 9

✔ Market research
✔ SWOT analysis
✔ Financial buffers
✔ Flexible business models

Question 10

A food startup wants to expand. Should it use organic or inorganic growth

Answer 10

Organic: Slower but cheaper (e.g., new recipes)

Inorganic: Faster but risky (e.g., acquiring a competitor)

Question 11

How can a business overcome fear of failure as a barrier?

Answer 11

Start small (e.g., pop-up shop), use lean methods, and validate ideas early.