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  • Created by: amy
  • Created on: 14-05-13 19:18

Key Terms

  • ENTREPRENEUR- someone with an idea for, and the skills and determination to start a business. They are willing to accept risk.
  • ENTERPRISE- The process by which new businesses are formed and new products and services are created.
  • OPPORTUNITY COST- The cost of the next best alternative forgone.
  • SOCIAL ENTREPRISES- Social mission driven organisations which trade in goods/services for a social purpose.
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Characteristics of an Entrepreneur

  • Determination
  • Risk Taking
  • Can spot Opportunities
  • Motivated
  • Vision
  • Relevant Skills
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Profit Motive

-return on investment

-future security

Being own boss

-taking decisions

-not taking orders

Self Actualisation

-self satisfaction


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Opportunity cost

  • In business everytime one decision is made an alternative decision has been dismissed
  • The "real cost" of any course of action, taking into account not only financial costs but also cost of alternatives forgone
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Government Support

The creation of new business helps to create competition in the market which is a positive thing as it helps to improve levels of efficiency and provides greater choice.

Ways in which the goverment support:

-lower business taxes

-reduced regulatory burden (paperwork)

-free business advice e.g Prince's trust

-legislation to encourage competition

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-money invested

-salary foregone


-fear of failure

-proving self


-time and effort

-loss of personal and social time

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