1.5.1 Role of an Entrepreneur

What is an entrepreneur?

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

What do entrepreneurs do?

1. Organise resources

• Must be able to gather and coordinate the resources necessary to start and operate a business

2. Make business decisions

• Must be able to maker decisions that will determine the success or failure of their business

3. Take risks

• Involves taking risks - financial, personal or professional

• They may also take risks by introducing new products or entering new markets

What is intrapreneurship?

• Intrapreneurship refers to the practice of promoting entrepreneurial thinking and behaviour within an existing business.

• It involves empowering employees to think and act like entrepreneurs

• The business encourages them to take risks, innovate and develop new ideas and projects that may benefit the business

Benefits of Intrapreneurship

• Taps into employees’ creative potential —> generates new products, services or processes that drive growth and competitive advantage

• Creates a culture of ownership and engagement among employees—> increases motivation and helps retain top talent

• Businesses promote it by providing resources and offering incentives/rewards for successful projects

What are the barriers to entrepreneurship?

1. Entrepreneurial capacity

• Entrepreneurial capacity is an individuals ability to think creatively, take risks and identify and seize business opportunities

2. Access to finance

• Many aspiring entrepreneurs struggle to secure the funding necessary to start or grow their businesses

3. Lack of training/know-how

• Starting and growing a successful business requires a range of skills, including marketing, finance, management and leadership

• Aspiring entrepreneurs may struggle to develop a variable business plan, attract customers or manage their finances effectively

4. Fear of failure / lack of confidence

• Entrepreneurship is inherently risky

• Entrepreneurs may hold back for fear of failure or a lack of confidence Entrepreneurship

• They may worry about the financial risks involved in starting a business or fear the stigma of failure

What is the difference between risk and uncertainty?

Risks can be calculated and prepared for, uncertainties cannot as they are unexpected events

What are factors that typically cause uncertainty?

• Environmental factors (Tsunamis)

• Economic changes (Brexit)

• The entry of new competitors

• Changes in local and national legislation (laws)

• Changes in the political party governing the country