Entrepreneurs and Enterprise Lecture Review

Vocabulary flashcards covering the motives, characteristics, challenges, and evolving roles of entrepreneurs based on the session summary.

Enterprise

The process of setting up a new business to sell goods or services, involving the combination of resources such as land, labour, and capital.

Entrepreneur

An individual who sets up and runs a business, accepting financial risk in the hope of earning a reward.

Profit maximisation

The financial motive of trying to make as much profit as possible, occurring when the gap between revenue and costs is as large as possible.

Profit satisficing

A motive where entrepreneurs earn enough profit to meet their needs while prioritising other factors like leisure time and low stress.

Social enterprise

A business set up to achieve social aims as well as financial sustainability, where profit is used to support a wider mission rather than just owners.

Ethical stance

Building a business around personal beliefs such as vegan products, cruelty-free sourcing, environmentally friendly production, or fair treatment of workers.

Entrepreneurial capacity

The personal requirements for starting a business, including business knowledge, leadership ability, soft skills, commitment, and energy.

Bureaucracy and red tape

The laws and regulations new businesses must follow, including employment law, minimum wage rules, health and safety, and consumer law.

Risk

The chance that decisions could lead to loss or failure, which can be judged and potentially reduced through market research and planning.

Uncertainty

Future events that cannot be predicted accurately, such as changes in government policy, economic instability, or natural disasters.

Resilience

The entrepreneurial characteristic defined as the ability to recover when things go wrong and keep going after setbacks.

Innovation

The ability of an entrepreneur to turn ideas into reality, develop products or services, and bring something new or improved to the market.

Delegation

The act of passing responsibility for tasks to other people, which becomes necessary as a business grows and the entrepreneur's role changes.

Reactive approach

A leadership style where an entrepreneur responds to events after they happen, such as copying rivals or responding late to changing customer tastes.

Proactive approach

A leadership style where an entrepreneur anticipates change before it happens by forecasting trends and planning for future opportunities.