Theme 1.5.2 - Entrepreneurial Motives and Characteristics Flashcards
(10 cards)
What is profit maximisation?
The aim to create a profitable business and to generate a substantial revenue and profit for themselves and their shareholders
What is profit satisficing?
Where a business owner is less focused with maximising the amount of profit they are making, and instead focus on achieving a satisfactory level of profit
What does is mean for a business owner to have an ethical stance?
Business owners may have a particular view that they want to build their business around ( e.g. environmental sustainability or social justice)
What is social entrepreneurship?
Where entrepreneurs seek to address a social or environmental problem whilst also making a living
What does it mean when a business owner wants ‘independence’?
People may want to be their own boss and have control over their work, they may be dissatisfied with traditional employment structures and desire freedom and flexibility within their work
What is home working?
With the use of technology, people have been able to start businesses from home with the luxury of being able to be more flexible and offers a better work-life balance
What are financial reasons for people to start a business?
- Profit maximisation
- Profit satisficing
What are non-financial reasons for people to start a business?
- Ethical stance
- Social entrepreneurship
- Independence
- Home working
What are the characteristics of a successful entrepreneur?
- Creativity
- Hard working
- Resilience
- Initiative
- Self confidence
- Risk taker
What are the skills needed to be a successful entrepreneur?
- Communication
- Team working
- Problem solving
- Organisation
- Numeracy
- Information technology
