Characteristics of entrepreneurs
Entrepreneur- Someone who takes responsibility for ogranising business activity and carries out business risk.
- take calculated risks
- Time and energy
- Interpersonal and communication skills
What motivates entrepreneurs?
Other responsibilities- such as a carer commited to looking after children/ an eldery parent set up a business so that they can work from home or an eldrly parent may set up business so that they can work from home or work at convient hours.
Profit- prospect of growing rich from profits has powerful attraction for some. profit maximisation *running a firm to make the most profit as posb. regardless of any other objectives.*
Satisficers- people who target a satisfactory (and perhaps comfortable) performance rather than profit maximisation.
Ethics- feel producing something useful for the community and that they are treating staff, suppliers well. In line with ideas on what in morally correct, sometimes business face a choice between profit maximisation and ethical behaviour.
Personal Objectives- comfort and relaxation, profit, creativity.
Leadership styles 1.
- Leader makes decisions without reference to anyone else.
- High degree of dependency on the leader
- Can create de-lixiviation and alienation of staff.
- May be valuable in some types of business where decisions need to be made quickly and decisively or where working with large amount of unskilled workers
leadership styles 2
- Encourages decision making from different perspectives.
- Consultative- process of consultation before decisions are made.
- Persuasive- leader takes decision and seeks to persuade others that decision correct.
- Help motivation and involvement of staff
- Workers feel ownership of the firm and the ideas
- Improves the sharing of ideas/ experiences within business
- Delay decision making
leadership styles 3
- 'Let it be' - leadership responsibilities are shared by all
- Can be very useful in business where creative ideas are needed
- Can be highly motivational as people have control over their working life
- Can make co-ordination and decision making time consuming and lacking overall direction
- Relies on good team work and interpersonal relations
leadership styles 4
- Leader acts as 'father figure'
- support staff