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

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