Pages in this set

Page 1

Preview of page 1
Enterprise = the ability to handle uncertainty and deal with effectively with change

Entrepreneur = someone who starts and runs a business and has responsibility for
the risks involved. In order to do this, an entrepreneur has to be able to manage
the 4 factors of production effectively: land,…

Page 2

Preview of page 2
Entrepreneur Cont.
­ Optimistic ­ Setting up a business can be tough and not always go
according to plan. An optimistic nature will help to ensure an
entrepreneur does not give up on the idea at the first hurdle they face.

­ Flexible ­ External, uncontrollable and, often, unforeseeable factors…

Page 3

Preview of page 3
Risk = The possibility of an event or condition occurring that will have a negative
impact (eg cause damage, injury, loss) on something perceived to be of value

Risk taking is a key feature of entrepreneurship and economists define
entrepreneurs as risk takers. You should note, however, that successful…

Page 4

Preview of page 4
Minimising Risks
· undertaking initial (and ongoing) market research. This is more likely to
detect problems / weaknesses with particular decisions / strategies, as well as
potential threats (e.g. new competition, changes in the economy affecting the
level of customer demand) and, where possible, enable timely response to
such threats.…

Page 5

Preview of page 5
Rewards for taking Risks

Financial reward comes in the form of profit and capital gains (made by selling
the business)

Without the prospect of profit, an entrepreneur is not likely to enter the
market and, unless the entrepreneur achieves a level of profit considered
satisfactory to him or her…

Page 6

Preview of page 6
Importance of Risks and
In the UK, people tend to be risk averse they are afraid of failure. As the majority
of new businesses fail, such fears are well placed.

Failure occurs for a number of reasons:
­ lack of finance
­ skills shortages
­ poor infrastructure
­ complexity…

Page 7

Preview of page 7
Opportunity Cost
In simple terms, opportunity cost is what we sacrifice (or forego) when we
decide to take one course of action over another.

In business terms, opportunity cost is the value of the benefit(s) of the next
best alternative course of action forgone, when making a choice between

Page 8

Preview of page 8
Motives are the reasons behind human behaviour. People set up their own
business for a variety of reasons which can broadly be divided into two sets of
factors ­ push and pull factors.
People may be `pushed' into becoming an entrepreneur because of the
unacceptability of any alternative and…

Page 9

Preview of page 9
Push and Pull Factors
People are `pushed' into setting up their own business by factors such as:
­ Redundancy and unemployment (or fear of it).
­ The inability to find employment which is sufficiently satisfying, rewarding or
­ Disagreement with management / management styles and/or conflict with
work colleagues.…

Page 10

Preview of page 10
Government Support
Government support for enterprise and entrepreneurs within the UK mainly
comes in the form of information and advice, financial assistance, tax concessions
and regulatory reform.

The aims of government support are to:
­ Provide free information & support
­ Reduce burden of regulation ("red tape")
­ Encourage innovation…




Wow, thanks this is a really well organized revision guide. I am currently a new a level business student and this helped me a lot, so thanks again.



This is amazing, thanks.

Similar Business Studies resources:

See all Business Studies resources »