1.5.1 The role of an entrepreneur Flashcards
(14 cards)
How can entrepreneurs develop and expand the business?
-carry out market research
-invest in new tech to improve service
-introduce new products and services
ALL OF THIS REDUCES RISK
Define an entrepreneur
someone who organises a business venture, takes a risk and is responsible for the outcomes
What is an intrapreneurship?
An employee within a larger business who thinks like an entrepreneur
Showing they can take risks, improve productivity and encourage innovation
-managers should treat them like assets to keep them
What are the 4 barriers to intrapreneurship?
Personal, economic, financial, political
What is a personal barrier?
Lack of self esteem or fear of failure
What is an economic barrier?
tax, regulations, market entry
What are financial barriers?
Lack of start up, lack of capital, lack of investment
What are political barriers?
government or political system is at risk of collapse or significant disruption due to factors like conflict
What is business uncertainty?
Where a business is unable to predict the outcome of future events of external shocks
Define risk
The potential negative impact of a future event
What are the 2 causes of uncertainty?
Shocks- unexpected events/changes that suddenly happen
Macro economic change- any change in larger economy that may affect business (Economic)
Why is business uncertainty a problem?
Increases risk
Disrupts planning
Stressful
Decreased profitability
How can a business reduce uncertainty?
-Market research
-planning
-collaboration
-macro economic indicators
How can a business protect itself from uncertainty if their involved in imports and exports?
May take out a long term loan at a fixed rate of interest as they will be affected by fluctuations in exchange rate
-This reduces risk
