Entrepreneurial motives and characteristics (1.5.2)

Entrepreneurial motives and characteristics (1.5.2)

1. Characteristics of entrepreneurs

   • Self-confidence
   • Self-determination
   • Being a self starter
   • Judgement
   • Commitment
   • Perseverance
   • Initiative

2. Skills required by entrepreneurs

   • Organising
   • Financial management
   • Communication
   • Managing people
   • Decision making
   • Negotiating
   • IT skills

3. Reasons why people set up their own business

   • Financial
     • Profit maximisation
     • Profit satisficing
     • Fiancial
   • Non-financial
     • Ethical stance
     • Social enterprise
     • Independence
     • Home working

4. DEFINITIONS

   • Profit maximisation= An attempt to make as much profit as possible in a given time period
   • Profit satisfaction= Making enough profit to satisfy the needs of the business owner(s)