Role of an entrepreneur (1.5.1)

The role of entrepreneurs

Entrepreneurs=  Individuals who, typically, set up and run a business and takes the risks associated with this .Entrepreneurs are innovators as they try and make money out of a business idea . Entrepreneurs are responsible for organising other factors of production . They have to make all the key decisions . They are risk takers  

Risks: Business failure Debts Opportunity costs e.g leaving a well paid job for a failed business Rewards:  Profit  Motivation  

How entrepreneurs find their business idea

Business experience Personal experience E.G turning a hobby into a job Skills  Lifestyle choices E.G want a change in lifestyle   

The Best Reasons For Starting Your Own Business (binary/octet-stream)

Stages in setting up a business

Barriers to entrepreneurship

Lack of finance Lack of entrepreneurial capacity Becoming an employer- expensive Legal barriers (red tape) Lack of ideas Fear of failure Aversion to risk Corrupt and unsupportive environment

Intrapreneurship

 They are employees who use entrepreneurial skills , without having to risk their own money, to find and develop initiatives that will have financial benefits for their employer

Advantages: Can drive innovation and uncover new commercial opportunities It's a means of satisfying the self-actualisation needs of employees A number of awards can be won through unique products Individuals benefit by getting the opportunity to experiment and be creative without having to meet the cost or failure