Entrepreneurs + Types of Businesses

• People who set up businesses are called entrepreneurs, they are the owners and without them businesses in a private sector would not exist.
• Characteristics of Entrepreneurs:

  • Entrepreneurs are innovators because they try to make money out of a business idea
  • Entrepreneurs are responsible for organising other factors of production, they buy or hire resources, like materials, labour and equipment.
  • Since entrepreneurs are the owners, they have to make all the decision-making.
  • Entrepreneurs are risk-takers, this is because they risk losing any money they put into their businesses.
• Businesses vary according to the legal form that they take.
• Unincorporated: these are businesses where there is no legal distinction between the owner and the business. Everything is carried out in the name of the business owner, these businesses tend to be small; owned by one person or a group of people.
• Incorporated: An incorporated business is one where there is seperate legal identity between the owner and the business. Incorporated businesses are often called limited companies and the owners are called shareholders.