Enterpise Amd Entrepreneur Flashcards
(27 cards)
What is enterprise in a business context?
Enterprise refers to the ability to identify business opportunities, take risks, and organise resources to produce goods or services. It’s the driving force behind starting and running a business.
What is an entrepreneur?
An entrepreneur is someone who takes the initiative and risk to set up and run a business, often bringing innovation and creating employment.
What are common characteristics of successful entrepreneurs?
Key traits include creativity, resilience, determination, risk-taking, confidence, leadership, and problem-solving abilities.
What are the main motives for becoming an entrepreneur?
Motives include financial gain, independence, personal fulfilment, social impact, job dissatisfaction, or spotting a market gap.
What is the difference between risk and uncertainty in business?
Risk involves known probabilities (e.g. losing money on an investment). Uncertainty is unpredictable and involves unknown outcomes (e.g. market changes, economic shocks).
What are some common barriers to entrepreneurship?
Barriers include lack of finance, fear of failure, limited skills, regulatory red tape, and lack of support or mentoring.
What are the main functions of an entrepreneur?
Entrepreneurs generate ideas, take risks, organise resources, make decisions, innovate, and drive business growth.
How does enterprise contribute to the UK economy?
Enterprise creates jobs, encourages innovation, increases competition, improves productivity, and contributes to GDP and exports.
What is innovation in entrepreneurship?
Innovation is creating or improving products, services, or processes to meet market needs more effectively. It gives a competitive edge and attracts customers.
What is social enterprise?
A social enterprise is a business with social or environmental aims. It reinvests profits to achieve its mission rather than maximising shareholder returns.
Evaluate the importance of risk-taking for entrepreneurial success.
Risk-taking is essential for innovation, growth, and seizing opportunities. It differentiates entrepreneurs from managers. However, excessive risk without planning can lead to failure, so balanced, informed risk-taking is most effective.
To what extent does personal motivation influence entrepreneurial success?
Personal drive helps overcome setbacks and sustain long-term efforts. Motivation fuels persistence and adaptability. However, external factors like funding, market timing, and networks can be equally important.
How do entrepreneurs contribute to innovation in the economy?
Entrepreneurs disrupt markets with new ideas and challenge incumbents, leading to better products and services. This drives productivity and efficiency but can also displace traditional businesses.
What is the role of government in supporting entrepreneurship?
Governments support enterprise through grants, tax incentives, education, and reducing regulatory barriers. Effective support encourages job creation and innovation, but poor policy may misallocate resources.
Assess the impact of lack of finance as a barrier to entrepreneurship.
Insufficient funding limits growth, marketing, and product development. It deters risk-averse individuals from starting businesses. However, creative entrepreneurs may use bootstrapping or crowdfunding to overcome this.
How does uncertainty affect decision-making in start-ups?
Uncertainty makes forecasting and strategic planning more difficult. Entrepreneurs must rely on judgement, intuition, and adaptability. Strong decision-making under uncertainty can be a competitive advantage.
To what extent are entrepreneurial skills more important than the business idea?
A strong idea is important, but execution, resilience, adaptability, and leadership often matter more in building and sustaining a successful business.
How do role models influence entrepreneurship?
Role models inspire confidence and provide practical examples for aspiring entrepreneurs. They help reduce fear of failure and offer benchmarks for success, especially in underrepresented communities.
What is the difference between necessity and opportunity entrepreneurship?
Necessity entrepreneurship arises from lack of better options (e.g. unemployment), while opportunity entrepreneurship is driven by desire to exploit a market gap or pursue a vision.
What is intrapreneurship and how does it benefit a business?
Intrapreneurship is when employees act like entrepreneurs within a company. It fosters innovation, boosts engagement, and helps large firms remain competitive. However, it requires a supportive culture and tolerance for risk.
What are lifestyle entrepreneurs?
Lifestyle entrepreneurs start businesses to suit their preferred way of living, often prioritising flexibility, passion, or work-life balance over rapid growth or high profit.
What is entrepreneurial culture and why is it important?
Entrepreneurial culture encourages creativity, initiative, and risk-taking. It supports innovation and adaptability, helping businesses stay competitive in fast-changing markets.
Explain how digital technology has enabled more entrepreneurship.
Tech reduces start-up costs (e.g. e-commerce, digital marketing), allows remote work, and broadens access to global markets and crowdfunding. It lowers barriers to entry but increases competition.
What is bootstrapping in entrepreneurship?
Bootstrapping involves starting a business with minimal resources and relying on personal savings, customer revenue, and careful spending instead of external funding.
