characteristics of successful entrepreneurs
An Entrepreneur is anyone who starts a business.
6 Characteristics a succeful entrepreneir have:
- Hard Working
- Take Calculated risks
- Desire to be your own boss
- Prove yourself
- Love of the business world
- Lifestyle choice
- Ethical Stance
- Satificers - making enough money for a good qualify of life
- Profit maximisers - to get as much profit as possible
Start-up costs - monney you have to spend to set up the business
Running costs - the day-to-day costs
Sales revenue - selling price X number of units sold
Fixed costs - the costs that don't change when output does
Variable costs - costs that changes when output does
Total variable costs - number of units X variable cost per unit
Total costs - fixed costs + total variable costs
Gross profit - sales revenue - total variable costs
Net / Operating Profit - gross profit - fixed costs = sales revenue - total costs
Leadership - the process of influencing others to work towards an organisation's goal.
The main ones are:
Autocratic - makes all decisions, often ruthless, one-way communication, feared.
Pro - Fast decisions.
Con - Subordinates (employees) don't get heard
Laissez-faire - leave decision-taking to employees, allowing them to be creative
Pro - empowers employees and encourages them to think for themselves
Con - not suited to all industry types
Democratic - consult widely and encourage employees to take part in decision-making process.
There are 2 main types of democratic leaders:
Paternalistic - someone that takes a general interest in staffs and their needs
Consultative - someone who asks staff their opinions and makes decisions based on then
Pro - gets alot of new ideas from employees, and may be encouraged to work harder
Cons - decision-making process is lengthened
Good leaders tend to have the following:
- Analysis and synthesis skills
- Social skills
- Commmuncation skills/charisma
- Energy and drive