1.5.2 Entrepreneurial Motives & Characteristics

Question 1

What are some of the skills required by an entrepreneur?

Answer 1

• Communication
• Teamworking
• Problem solving
• Organisation
• Numeracy
• Information technology

Question 2

What are the characteristics required by entrepreneurs?

Answer 2

• Creativity
• Hard working
• Resilience
• Initiative
• Self confidence

Question 3

What are the financial reasons people set up a business?

Answer 3

Profit maximisation- People want to create a profitable business that generates substantial revenue and profit for themselves and their shareholders

Profit satisficing- Occurs when the entrpreneur is not soley focused on maximising profts but rather achieving a satisfactory level of profit

Question 4

What are some non-finanical reasons people set up businesses?

Answer 4

Ethical stance- Some entrepreneurs may have a particular ethical stance that they want to build their business around

Social entrepreneurship- These entrepreneurs aim to create a business that seeks to address a social or environmental problem while also earning a living

Home working- With the advent of technology, many people have started businesses from their homes and this offers them more flexibility and a better work-life balance