Notesale: Turn your study into money

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The Role of an Entrepreneur
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A person who takes a risk in setting up their own business
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 Make decisions – entrepreneurs are decisive and make decisions
 Take risks – entrepreneurs are often willing to risk their career and
financial security to make their idea work
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An entrepreneur may decide to set up their own firm for a number of reasons:
 Personal experience – a business may be based on a hobby or
interest
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 Skills – some people set up a firm based on their interpersonal, artistic,
or technical abilities
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 Business experience – some start a new firm using the experience of
their current job or profession
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Self-determination – they have
the drive to keep going when
they come up against problems
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Initiative – they are proactive
and adapt to change
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Financial management – cash
flow management can be
challenging for small firms
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Negotiating – negotiating deals
and contracts with suppliers and
customers
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Profit satisfying – to generate
enough income to live a
comfortable lifestyle
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g
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Social enterprise – running a
firm for a social or environmental
cause – not-for-profit
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5 Entrepreneurs and Leaders
Business Objectives
Businesses set objectives to:
 Provide quantifiable steps to achieve aims
 Clarify direction of the business
 Measure success against targets
 Motivate employees to achieve
 Reward employees
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 Requires a wide range of skills and flexibility
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 The owners keeps all profits
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 PARTNERSHIP – a business owned by two or more individuals
 Joint ownership of running a business
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 These are common in professions such as solicitors
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 PRIVATE LIMITED COMPANY – owned by shareholders separate legal
entity
 Must go through the process of incorporation
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 Will have wider access to capital
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 Can raise capital through selling shares to the public
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 Has the ability to take over other businesses
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 FRANCHISE – a limited company that licenses the right for individuals
or groups to set up an identical operation in a new region
 Allows a business to expand without the owners taking responsibility
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 Franchisees are provided with training and support from franchisor
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Often run by a single person and linked to an
interest, skill, or enthusiasm
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 Administration – insurance, legal setup, tax, and business
records
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 Production – production of goods, storage, quality
management and delivery
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 Purchasing – liaising with suppliers, deliveries, logistics
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Entrepreneur to Leader
 As an entrepreneur’s firm grows there will be increasing pressure
for them to change their approach and become an effective leader
of the organisation
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 The needs to motivate and inspire others
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 Entrepreneurs will face a number of challenges when taking on the
role of a leader for the first time
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 Stress – larger businesses bring with them more responsibility
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 Seeing themselves as a leader – entrepreneurs must accept the
responsibility and adjust their mindset
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 Education – complete leadership development courses and
qualifications
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 Delegate and trust – utilise qualified employees to lighten their
load and take responsibility for aspects of running the business

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