Starting a Business

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  • Created by: Lucy
  • Created on: 23-03-15 18:55
Enterprise
The ability to handle uncertainty and deal with effectively with change
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Entrepreneur
Someone who starts and runs a business and has responsibility for the risks involved
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Entrepreneur skills
imaginative,creative,passionate about the idea,willing to take responsibility,hard working,innovative
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Risk
The possibility of an event or condition occurring that will have a negative impact on something perceived as value
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What do economists say about entrepreneurs?
They are risk takers
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If the risk fails, this can lead to...
financial loss (own savings into the business lost, ongoing debt from any borrowing)
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Reward
is the expected turn which is either financial, or other based on the risk take
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Reward (profit)
is the reward for risk, the excess of sales revenue over cost
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Ways in which you can minimize risk
market research, limited company (protects personal assets, detailed business plan, keep fixed assets to a minimum, insurance
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However always with risk
it will never disappear! the owner has no control over political, economic and competitive factors
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Why do failures occur?
lack of finance, skills shortage, poor infrastructure,
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Disadvantages to risk taking
hard work, stress,financial pressure, the strain, OPPORTUNITY COST
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opportunity cost
what we sacrifice when we decide to take one course of action over another
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Why become a entrepreneur? PUSH FACTOR
there is no other alternative, lack of interest in current job
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Why become a entrepreneur? PULL FACTOR
wanna be your own boss, hobby, gap in the market, financial reward, something that is yours
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Government support
A form of infomation and advise, financial assistance, tax concessions given out by the government
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Why do the government offer support to entrepreneurs?
Encourage job creation,innovation, provide support to the people
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Other cards in this set

Card 2

Front

Entrepreneur

Back

Someone who starts and runs a business and has responsibility for the risks involved

Card 3

Front

Entrepreneur skills

Back

Preview of the front of card 3

Card 4

Front

Risk

Back

Preview of the front of card 4

Card 5

Front

What do economists say about entrepreneurs?

Back

Preview of the front of card 5
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