1.5.1 The role of an entrepreneur Flashcards
(12 cards)
define entrepreneur
someone who organises a business venture, takes risks and is responsible for the outcomes
how will an entrepreneur develop and exand their business
- carry out market research to see if there’s demand to justify expansion
- raise necessary finance
- introduce new products/services
- invest in new technology
- take on more skilled staff
what is intrapreneurship
an employee within a larger business who thinks like an entrepreneur
they are an asset
if failure to retain them, they may leave and set up their own business or go to a competitor
what characteristics might a intrapreneur have
- take risks
- solves problems
- focuses on processes to improve productivity
- drives innovation
- understands trends
- motivates staff
what are the 4 barriers to entrepreneurship
with examples of each one
personal= lack of self esteem, risk averse, fear of failure, lack of technical skills
economic= taxation, market entry, regulations
financial= lack of start up capital, lack of cheap labour, lack of investment
political= unstable political landscape
what is uncertainty
is when a business is unable to predict the outcome of external shocks or future events
what is a risk
the potential negative impact of a future event
what are the 2 causes of uncertainty
shocks
macro economic change
define a shock
unexpected events or changes that happen suddenly and without warning
e.g. 9/11 crises
define macro economic objectives
any changes in the larger economic environment that may affect a business
e.g inflation, changes in interest rates, increase in unemployment
why is uncertainty a problem for a business
- increases risk
- disrupts planning
- diverts resources away from the core activities of the business
- expensive
- stressful
- reduces profitability
how can a business reduce uncertainty
- market research
- contingency planning
- research and development
- macro economic indicators
- collaboration
