1.5 - Entrepreneurs & Leaders

35 vocabulary flashcards based on the Edexcel A-Level Business study notes covering entrepreneurs, business motives, objectives, forms of business, trade-offs, and leadership.

Entrepreneur

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

Intrapreneurship

The practice of promoting entrepreneurial thinking and behaviour within an existing business by empowering employees to innovate and take risks.

3M's "15% rule"

A company policy that allows employees to spend up to 15% of their work time pursuing projects outside of their normal job.

Google's "20% time" policy

A policy allowing employees to spend 20% of their work time on personal projects, which led to the creation of Gmail.

Entrepreneurial capacity

An individual's ability to think creatively, take risks, and identify and seize business opportunities.

Access to finance

The availability of funding needed to start or grow a business, the lack of which serves as a major barrier to entrepreneurship.

Risk

A situation where the probabilities of potential business outcomes are known or understood, allowing for a conscious decision.

Uncertainty

Unpredictable events caused by factors outside of an entrepreneur's control, such as environmental disasters or economic shifts.

Profit maximisation

A financial business objective focused on generating the maximum possible revenue and profit for owners and shareholders.

Profit satisficing

Achieving a satisfactory level of profit to maintain a work-life balance rather than focusing purely on maximising profits.

Ethical stance

A non-financial motive where a business is built around ethical values such as environmental sustainability or social justice.

Social entrepreneurship

A business model where an entrepreneur aims to address a social or environmental problem while also earning a living.

Independence

A non-financial motive where an entrepreneur sets up a business to be their own boss and gain control, freedom, and flexibility.

Home working

Operating a business from home using technology to achieve greater flexibility and a better work-life balance.

Sales maximisation

A business objective centered on generating the maximum possible revenue by selling products or services.

Market share

The percentage of total sales in a particular market that is held by a specific business.

Cost efficiency

A company's ability to produce and deliver its products at the lowest possible cost to remain competitive.

Employee welfare

A business objective focused on providing a healthy working environment, competitive wages, and a balanced work life for staff.

Customer satisfaction

An objective aimed at meeting consumer needs by providing high-quality products, excellent service, and attractive pricing.

Social objectives

Commitments made by a company to operate sustainably and address social or environmental issues within communities.

Sole trader

A business owned by a single individual who retains complete control and all profits but has unlimited liability.

Partnership

A business form where two or more people join together to share responsibilities, decision-making, and unlimited liability.

Private limited company (Ltd)

A business structure owned by shareholders with limited liability, where shares are sold privately to family, friends, or venture capitalists.

Unlimited liability

A legal obligation where business owners are personally responsible for all debts incurred by their business.

Limited liability

A legal structure where shareholders are not personally responsible for the financial debts of the company.

Franchising

A business model where an individual buys the rights to operate under an established brand, system, and support structure in exchange for fees and royalties.

Franchisee

An individual who buys the rights to operate a business using the branding, system, and ongoing support of a franchisor.

Franchisor

A larger company that sells the rights to its established business model, branding, and operational support.

Social enterprise

A business whose primary purpose is to generate positive social or environmental impact, with profits typically reinvested into the cause.

Lifestyle business

A small, owner-operated business that prioritises an owner's personal interest and work-life balance over profits or growth.

Online business

A business operating over the internet that usually features low overhead costs and does not require physical premises.

Public limited company (PLC)

A company structure that allows shares to be sold publicly on the stock market to raise substantial expansion capital.

Opportunity cost

The loss of the next best alternative when making a decision among competing resource choices.

Trade-off

A situation that occurs when two objectives cannot be fully achieved, meaning having more of one results in having less of another.

Delegation

The practice of a leader transferring tasks and responsibilities to team members while trusting them to complete the work.