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28 Cards in this Set
- Front
- Back
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define entrepreneur |
Someone who is will to take risks to start up a new business or project |
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define enterprise |
the skills needed to be a successful entrepreneur |
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define serial entrepreneur |
someone who continually has new ideas and sets up multiple new businesses |
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what do entrepreneurs provide? |
new services and products |
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What is the main danger with being an entrepreneur? |
That their money, time and effort invested will be lost if the business idea does not work |
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What can externally cause a business to fail? |
The economy worsening and the entrepreneur not foreseeing it or fashions abruptly changing |
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what else could cause a business to fail? |
internally: -entrepreneurs understanding of the market is not good enough (e.g. badly priced) -employs people that are not producing the quality needed |
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To go ahead with a business idea, the rewards should be... |
...greater than the risks |
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give some potential rewards of setting up a business |
-profit -satisfaction -fame -expanding -pride -independance |
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give some potential risks of setting up a new business |
-bad debts -product/service not selling -loss of reputation -bad cash flow -costs exceeding revenue |
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what risk/reward situation is favourable in setting up a new business? |
low risk, high reward |
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what risk/reward situation is not favourable in setting up a new business? |
high risk, low reward |
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what two risk/reward situations have some interest in setting up a new business? |
low risk, low reward high risk, high reward |
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Which of the previous risk/reward situations are most unlikely to be available? |
low risk, high reward |
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what %age of people are entrepreneurs? |
12% have set up a business |
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what are the motives or becoming an entrepreneur? |
-When successful, it is often the most profitable part of the business -independent -status/fame -more control -more satisfaction |
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what is opportunity cost? |
the benefits that could have been gained by the next 'best' alternative |
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what is the opportunity cost of someone who sets up a fashion business instead of a café? |
the rewards that could have been gained from the cafe |
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what tends to make a successful entrepreneur? |
-hard working -faith and a vision for what it will be -willing to take risks (calculated) -well-rounded -innovative -driven -committed |
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why do governments like entrepreneurs? |
-set up new businesses in the economy |
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What is it about new businesses that affect the economy? |
-Create more jobs - lower unemployment -earn money/pay tax -create market competition - more choice in services/products and lead to improvement |
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Owing to governments liking entrepreneurs, what are they willing to do? |
help entrepreneurs start up and grow their businesses |
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name three ways in which the government supports entrepreneurs |
-access to advice /info to help them get started -funding/grants -legal protection for new ideas |
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give an example of how the government can provide advice/info |
a new entrepreneur may lack knowledge about finance and would appreciate advice in this area |
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give an example of how the government can provide legal protection |
they can provide a patent to legally protect an invention so the idea isn't 'stolen' while a profit can be made |
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what is a good entrepreneurial culture? |
a country that highly values/respects entrepreneurs and encourages people to set up on their own |
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what causes a bad entrepreneurial culture? |
-if people are blamed for their business not succeeding then other people do not take the risk -regulations do not tempt people (forms to fill out, expensive, difficult) |
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are there specific characteristics that make up an entrepreneur? |
there are common characteristics but it will vary depending on the type of entrepreneur they want to become. |
