Entrepreneurial Motives and characteristics (1.5.2)

Question 1

What are some skills and characteristics of an entrepreneur?

Answer 1

Skills:
-Communication
-Team Working
-Problem Solving
-Organisation
-Numeracy

Characteristics:
-Creativity
-Hardworking
-Resilience
-Intiative
-Self confidence
-Risk taker

Question 2

What are the roles of an entrepreneur? (4 Things)

Answer 2

-Spot business opportunities
-Take calculated risks
-Create growth
-Organize business resources

Question 3

What are the financial motives for starting a business? (2 Things)

Answer 3

-Profit Maximization
-Profit satisficing

Question 4

What is Profit Maximization?

Answer 4

When the business just tries to achieve high profit in the short term with no intention of trying to increase it in the long term.

Question 5

How is Profit Maximization achieved? (4 Ways)

Answer 5

-Increasing Price
-Improving Productivity/Efficiency
-Cutting cost where possible
-Firing excess staff

Question 6

What is Profit Satisficing?

Answer 6

When an entrepreneur isn’t solely focused on maximising profits but rather achieving a satisfactory level of profit. May prioritise their work-life balance.

Question 7

How is Profit Satisficing achieved? (2 Ways)

Answer 7

-Increased Reinvestment
-Increased Expansion

Question 8

What are non-financial motives for starting a business? (8 Things)

Answer 8

-More control over working life/Independence
-Pursue interest/hobby
-Get to be boss
-Satisfaction of building something
-Get rewards for effort
-Flexible working/Home working
-Ethical Stance

Question 9

What are the drawbacks of being an entrepreneur?
(6 Drawbacks)

Answer 9

-Occasional isolation
-Financial Pressure
-Hard work
-High stress levels
-High responsibility if something goes wrong
-Hard to have a sick day

Question 10

What are Social Enterprises?

Answer 10

Not-for-profit enterprises which have primary social objectives for community/business purposes rather than the aim of maxamising profit.