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1.5.1 Role of an Entrepreneur - Coggle Diagram
1.5.1 Role of an Entrepreneur
Creation and set up
Needs to identify a gap in the market through market research.
They'll have to thoroughly research their business idea and make sure they have considered everything in there business plan, such as the marketing mix, finance, legal ownership.
Will often have to raise the money needed to start the business and acquire all other resources.
Entrepreneur
A person who sets up a business usually with the aim of making a profit.
Running and development
Continuous market research is needed to check for any changes that could effect their business.
Will also need to set aims and objectives for the business as it grows. Which they can use to monitor performance and aid decision making.
Hiring employees is needed in order to run other parts of the business, where the owner will need to delegate tasks.
Innovation
Will need to think of new products or ways of doing things and be prepared to take on risks of making these ideas a reality.
Staff can also be encouraged to innovative. For example if staff are allowed to take risks and experiment to find better and more efficient ways of doing things. (Intrapreneurship)
Barriers
Lack of money - high start up costs, common in businesses which require large machinery or technology.
Lack of confidence from the entrepreneur - fear of failure and the risk of loosing their investment and the lack of security from a regular wage.
Lack of training or business experience.
Lack of entrepreneurial capacity - a businesses ability to identify growth and development opportunities and use its research creatively to overcome these.
Anticipating risk
All businesses decisions carry an element of risk. These need to be weighed up with the pros and consequences of taking the risks.
The higher the risk typically the higher the potential reward. For example entering or creating a unique market with no competitors would be a high risk approach but could have a massive upside as the business gains the first movers advantage.
Becoming a leader
Will have to learn how to delegate responsibility to members of staff.
Will need to learn to consult with staff on decisions rather than being very reactive like when they were on their own.
Developing emotional intelligence regarding staff well being and understanding that staff may be better that things than they are.