role of an entrepreneur

Question 1

entrepreneur

Answer 1

earn their living starting, owning, and working for their own business

Question 2

employees

Answer 2

earn their living working for someone else’s business

Question 3

business

Answer 3

an organisation that exists to provide goods and services on a commercial basis to customers

Question 4

product

Answer 4

exists in nature or is made by human beings and is tangible

Question 5

service

Answer 5

work that provides time, skills, or expertise and is intangible

Question 6

economy

Answer 6

a country’s financial structure; the system that produces and distributes wealth

Question 7

benefits

Answer 7

money earned and knowledge and experience gained

Question 8

cost

Answer 8

money and time invested

Question 9

cost/benefit analysis

Answer 9

listing costs and benefits in order to make decisions that are not emotional

Question 10

opportunity

Answer 10

an idea that is based on what customers need or want and are willing to buy sufficiently often at a high enough price to sustain the business

Question 11

profit

Answer 11

amount of money earned after costs are paid

Question 12

enterprise

Answer 12

• the skills and abilities to take risks and create profits
• the creation of a business to meet the needs and wants of customers

Question 13

a start up

Answer 13

a new business enterprise, formed by one or more entrepreneurs

Question 14

intrapreneurship

Answer 14

involves people within a business, creating or discovering new business oppotunities, which leads to the creation of new parts of the business or even new business

Question 15

roles played by entrepreneurs

Answer 15

• they are innovators as they try to make money out of a business idea
• they are responsible for organising other factors of production ( hiring, buying resources)
• have to make all the key decisions
• risk takers; this is because they risk loosing any money they put into the business if it fails

Question 16

advantages of being an entrepreneur

Answer 16

• it means you work for yourself
• Could become rich E.G Richard Branson
• Chance to do something different

Question 17

disadvantages of being an entrepreneur

Answer 17

• risky; the business could fail and leave debts to be paid off
• getting back into a normal job can be difficult, especially if the entrepreneur left a well paid job

Question 18

stages of setting up a business

Answer 18

• business idea
• research
• planning
• financing
• location
• resources
• launch

Question 19

what are the advantages of employing intrapreneurially staff?

Answer 19

• can drive innovation in a business and uncover new commercial opportunities
• will help motivate staff and hopefully raise production
• individuals benefit by getting the opportunity to experiment and be creative without having to meet the cost of failure
• should improve their job satisfaction

Question 20

barriers to entrepreneurship

Answer 20

• lack of finance
• lack of entrepreneurial capacity
• legal barriers
• lack of ideas
• fear of failure
• aversion to risk
• corrupt
• unsupportive enviroment