Entrepreneurs

Question 1

What is an Entrepreneur? (2)

Answer 1

A person who sets up a business and without them they wouldn’t exist.

Question 2

What are the 5 reasons entrepreneurs start a business? (5)

Answer 2

1. Financial Motives - Profit Maximising and Satisficing
2. Ethical
3. Independence
4. Work From Home

Question 3

What are the 3 roles of an entrepreneur? (3)

Answer 3

Creating and Setting up a business
Running and Expanding the business
Business Innovation

Question 4

What is Business Innovation? (2)

Answer 4

Making Unique Products through R&D and adapting them to improve customer loyalty

Question 5

Why is creativity as an important characteristic as an entrepreneur? (8)

Answer 5

1. Creativity is the most important characteristic
2. As it allows them to be innovative.
3. Differentiate from competitors
4. Build a strong brand
5. More loyalty becoming Price Inelastic
6. Increasing Price without significant fall in demand
7. Increase in revenue and gross profit margins
8. Increased retained profit to reinvest in..