Role of an Entrepreneur (1.5.1)

Question 1

Who are businesses usually started by?

Answer 1

Entrepreneurs

Question 2

Who are Entrepreneurs?

Answer 2

An entrepreneur is a person who is willing and able to create a new business idea or invention and takes risks in pursuing success

Question 3

What is the role of a business?

Answer 3

To sell products to Customers

Question 4

What are the two types of Products a business can sell?

Answer 4

Goods and Services

Question 5

What are goods?

Answer 5

Physical products e.g. Phone Case, Car

Question 6

What are services?

Answer 6

Products you cant touch e.g. Dental Services, hairdresser

Question 7

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

Answer 7

1. Spot business opportunities
2. Take calculated risks
3. Make business decisions (to determine failure or success of their business)
4. Organize business resources (coordinate resources)

Question 8

What is Intrapreneurship?

Answer 8

Refers to the practice of promoting entrepreneurial thinking and behavior within an existing business.

Question 9

What does Intrapreneurship help do?

Answer 9

It empowers employees to think and act like entrepreneurs. It helps discover new business ideas as gives staff time to think and take risks, innovate and develop new ideas that may benefit the business.

Question 10

What does Entrepreneurship allow a business to have?

Answer 10

Allows business to tap into creative potential of their employees and generate new products, services or processes that can drive growth and lead to a business having a competitive advantage.

Question 11

What can be barriers to entrepreneurship?

Answer 11

1. Entrepreneurial capacity- If potential entrepreneur lacks business skills it can make starting and sustaining a business much harder.
2. Fear of failure/ lack of confidence- Entrepreneurship is very risky and so entrepreneurs can hold back for a fear of failure and financial risks that come with failure.
3. Lack of training/ Know-how- Starting a business requires a range of skills. Aspiring entrepreneurs struggle to develop business plan etc.. effectively.
4. Access to finance- Many entrepreneurs struggle to secure necessary funding to start or grow their business.

Question 12

What is the difference between risk and uncertainty?

Answer 12

Risk: Something an entrepreneur can plan for. Probabilities of outcomes known. (can be calculated and prepared for)
Uncertainty: Caused by factors outside of the entrepreneur’s control. (Unexpected events that can’t be prepared for)