Opportunity spotter, creative, risk taker, hard working, self motivated, enthusiastic, determined and persistent
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What are motives?
Reasons for doing something
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What are costs of production?
All the payments that have to be made in order to get a product into the market place
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Why must entrepreneurs cover their costs?
So they can pay the employees, the rent, raw materials, components, inputs bought from wholesalers, business rates, interest and energy bills
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What is sales revenue?
price x quantity sold
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What is profit?
sales revenue - costs of production
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How does profit act as an incentive?
It encourages businesses to expand or produce more or to develop a new product because then they can get a greater return on their investment
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What may profit compensate for?
The entrepreneur risks associated with running a business
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What are some financial entrepreneurial motives?
Profit maximisation, meeting consumers' needs and developing an innovation
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What are some non-financial entrepreneurial motives?
Independence, working from home, social entrepreneurship and setting up an ethical business
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Why does a business want to be seen to be ethical?
So that all their stakeholders are treated appropriately whilst still making a profit, therefore making their business look good so more people want to work with them and they get good publicity
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What are the four factors of production?
Capital, enterprise, land and labour
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What is capital?
It includes premises and equipment that are repeatedly used in production. It includes machines, buildings and infrastructure
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What is enterprise?
It brings the factors of production together to create desirable goods or services and the willingness to take risks in return for profit
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What is land?
It is an umbrella term covering all natural resources that can be found and exploited and the space where production can be located
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What is labour?
Human effort contributing to production. Salaries are received in return
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