The Nature of Enterprise Flashcards

All 11 cards in this deck

Name the four characteristics of an entrepreneur.

Creativity, risk taking, determination and confidence.

What is an entrepreneur?

A person who starts and runs their own business, taking risks in the hope of making a profit.

Why is starting a business a financial risk for an entrepreneur?

A new business needs financial investment to start up, and if the business fails the entrepreneur could lose this money.

Give three risks an entrepreneur faces when starting a business.

Business failure, financial loss and lack of security (losing the regular income from a job).

Give three rewards an entrepreneur may gain from starting a business.

Business success, profit and independence (being their own boss).

Which entrepreneurial characteristic is shown by someone who keeps trying new designs despite frequent setbacks?

Determination.

Which entrepreneurial characteristic is shown by an entrepreneur who invents an original product no one else sells?

Creativity.

Give one non-financial drawback an entrepreneur may face from running a business.

Any one of: stress that harms their health; strain on family and personal relationships because the business takes so much time; giving up holidays and free time.

Other than profit, independence and business success, give one reward an entrepreneur may gain.

Self-satisfaction: the pride of making their own idea work, e.g. turning a hobby into a business.

Which entrepreneurial characteristic is shown by someone who believes their idea will succeed and persuades others to back it?

Confidence.

What is meant by "the greater the risk, the greater the reward"?

Entrepreneurs who take bigger risks, such as putting more money into a new idea, may make larger profits if it succeeds, but they also stand to lose more if it fails.