Time for Business | Chapter 15: The Skills, Characteristics and Role of an Entrepreneur | Quizlet

Entrepreneur

A person who takes the initiative and the personal and financial risk to set up a business to make a profit.

Entrepreneur's roles in an organisation

1. To provide the employees with direction and instruction in what they should do as part of their work.

2. To provide the employees with a contract of employment.

3. To provide a safe place to work.

4. They are responsible for identifying opportunities, developing new products and services.

5. Entrepreneurs also play a key role in managing resources, including people, finances and technology.

Ability to identify opportunities

Entrepreneurs have the ability to spot a need or gap in the market that is not currently being met and seize the opportunity by listening to customers' needs and being aware of future business opportunities. (Skill)

Ability to assess and manage risk

Entrepreneurs measure the risks involved in a potential course of action and take steps to minimise these risks. They are unlikely to engage in a new venture if they feel the risk of failure is too great.

Enterprise

This is any attempt to start or do something new. It is about turning ideas into actions, using creativity and a willingness to try new things. It is not just about business, it can happen at home, school, in the community and in the public service.

Characteristic

This is a personality trait that you are born with.

Skills

A learned ability or expertise that people develop through practice, experience, learning or training.

Realistic risk-takers

Entrepreneurs conduct research before making a decision. They weigh up the risk involved and make an educated decision with hope of success. (Characteristic)

Innovative

This means being able to do something in a new or different way, being good at coming up with new ideas or new ways of doing things. (Characteristic)

Proactive

This means being prepared to make things happen, rather than waiting for someone else to act. (Characteristic)

Flexible

This means that entrepreneurs learn from their mistakes and failures by adapting when things don't go according to plan. (Characteristic)

Self-confident

This means that the entrepreneur believes in themselves and in their business idea. They believe that they have what it takes to be successful. (Characteristic)

Decisive

Entrepreneurs can make timely decisions and take responsibility for the decisions they make. (Characteristic)

Determined

They don't give up easily when faced with a problem or obstacle. (Characteristic)

Resilient

Entrepreneurs do not give up easily when faced with obstacles and challenges. (Characteristic)

Intrapreneurs

An enterprising employee in an existing business.

Reasons for starting a business

1. They want to be their own boss.

2. They spot a gap in the market for a product or service.

3. They want to keep all the profits for themselves.

Rewards of being self-employed

1. You make all the decisions.

2. You can work flexible hours to suit the needs of your customers.

3. You have a great sense of satisfaction if the business is a success.

Risks of self-employment

1. You may lose the money you invested in the business if it fails.

2. You will need to work long hours to get the business up and running and to oversee all aspects of the business.

3. You may find it difficult to take time away from running the business.

4. Sales may vary each week, so your income is not guaranteed.

5. You may not have all the necessary skills to establish and run a business.

6. Your business reputation and credit rating may suffer if the business fails.

These are entrepreneur's roles in society

1. Entrepreneurs create jobs and generate economic activity, which helps to improve the standard of living

2. To produce products and services to meet consumer needs. 3. To produce safe products and not damage the local environment.

4. They also contribute to society by supporting charitable causes and community initiatives.

These are entrepreneur's roles to the economy

1. To pay thier tax bill on time. This means the Government can provide essential services for the country.

2. They create new markets and opportunities, drive productivity and efficiency, and spur competition and innovation.

3. Entrepreneurs also help to diversify the economy, reducing dependence on a single industry or sector, and promoting economic stability and resilience.

Planning and goal setting

Entrepreneurs learn to set strategic goals for themselves and their business using plans to achieve these goals. They also write a business plan when establishing their business. (Skill)

Time management

Entrepreneurs use their time carefully to achieve their goals. They make the best use of their time by prioritising daily tasks. (Skill)

Ability to manage money

Entrepreneurs need to have good financial skills in order to prepare budgets and manage cash flow. (Skill)

Human relations skills

Entrepreneurs use good communication and listening skills to get on with people, such as employees, suppliers, investors, customers and state agencies that provide support to entrepreneurs. (Skill)