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Unit 1 - Role of an entrepreneur :star: - Coggle Diagram
Unit 1 - Role of an entrepreneur
:star:
Entrepreneurs
= individuals who, typically, set up and run a business and take the risks associated with it
Creating and setting up a business
Role of an entrepreneur
:
They are innovators
They are responsible for organizing factors of production
They make all the decisions
They are risk takers.
Risks and rewards for entrepreneurs
:
Abondoing a steady paycheck
sacrificing personal capital
relying on cash flow
estimating interest in the business / product
trusting key employees
meeting multiple deadlines
donating personal time and wealth
Business ideas
:
lifestyle choices
skills
business experience
personal experience
Stages in setting up a business
1) idea
2) planning
3) financing
4) location
5) resources
6) launch
Running and expanding / developing
Marketing
- market research and planning promotion
Purchasing
- having the finance to purchase resources and checking for quality resources
Administration
- this includes keeping an accurate record of all transactions for tax purposes
Managing people
- included all recruitment and selection activities > motivating staff
Financial management
- this includes raising finance and competing accounting documents
Production
- organising production and ensuring quality and consistency
Intrapreneurship
= 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
:check: creates new commercial opportunities
:check: staff motivation
:check: job satisfaction for staff
:check: business may win awards
How a business can encourage intrapreneurship
?
Encourage networking and collaboration
reward entrepreneurial thinking and activity
train employees in innovation
Barriers to entrepreneurship
lack of finance
lack of ideas
fear of failure
corrupt and unsupportive enviroment
Anticipating risk
the probability that things will not go as well as planned
the chances that money invested in the business will be lost
risk of not getting another job or having to face the stigma of "failure"
How to reduce the amount of risk they take
:
Take calculated risks (understand them rather than gamble)
look for higher returns to take account of the risks
spread risk by diversifying.