ENTREPRENEURIAL MOTIVES ANDCHARACTERISTICS

Question 1

financial objectives

Answer 1

PROFIT MAXIMISATION
To generate as much wealth as possible

PROFIT SATISFICING
1. Just enough to maintain business/satisfy
entrepreneur
2. Good for keeping happy stakeholders
- Workers: higher wages
- Customers: lower prices
- Shareholders: still get dividends
- may take fewer risks

Question 2

non-financial objectives

Answer 2

INDEPENDENCE
Be own boss; a sense of achievement/satisfaction

HOME WORKING - Saves costs, and time and builds flexibility however there are distractions and a lack of socialisation

ETHICAL STANCE - Run a business to support ethical principles e.g. animal rights

SOCIAL ENTERPRISE - Running a business for a social cause or to support the
community. It creates a USP that attracts custom

Question 3

define a social enterprise

Answer 3

trade goods or services for a social purpose

the triple bottom line:
- financial
- social
- environmental

Question 4

downsides of being an entrepreneur

Answer 4

• financial pressure
• hard work
• strain on family and social life
• higher stress level
• cant take a day off sick

Question 5

characteristics

Answer 5

• creative
• hard working
• resiliant
• it
• team working