Entrepreneur

• What is the definition of an entrepreneur?

  An individual who takes on risk for reward
• Why is the success of an entrepreneur not guaranteed?

  Because risks may lead to failure
• What percentage of restaurants fail within the first three years?

  90%
• What is the usual reward for an entrepreneur?

  Profit from their business ventures
• What is a social enterprise?

  A business aimed at helping society
• What are the two types of risks an entrepreneur may take?

  Starting a new business and expanding
• What is the risk of expanding a successful store?

  It may lead to financial loss or insolvency
• What does it mean for a company or individual to be insolvent?

  Unable to pay debts when due
• What happens when an individual becomes bankrupt?

  They may have unlimited liability issues
• What is the process called when a company goes insolvent?

  Liquidation or winding up
• What is limited liability?

  Protection from personal losses beyond investment
• What is opportunity cost?

  The sacrifice made when choosing an alternative
• What is an example of opportunity cost for a sole trader?

  Becoming a private limited company
• What is a potential reward for becoming a private limited company?

  Access to extra finance from banks
• What is a potential sacrifice when becoming a private limited company?

  Increased administrative work and costs
• What qualities are important for an entrepreneur?

  Organization, work ethic, innovation, risk-taking
• What does it mean to be a risk-taker as an entrepreneur?

  Making educated risks based on research
• How does market research affect risk-taking?

  It reduces risk and increases chances of reward
• What are the key concepts related to entrepreneurship?

  • Definition of an entrepreneur
  • Risks involved in entrepreneurship
  • Rewards of entrepreneurship
  • Opportunity cost
  • Important qualities of an entrepreneur
• What is an entrepreneur?

  Someone who creates and operates a business
• Why do entrepreneurs take financial risks?

  To hope for making a profit
• What might motivate someone to set up a business?

  To pursue a passion or achieve financial independence
• What is one reason for setting up a business?

  Identifying a gap in the market
• What is a challenge entrepreneurs face when starting a business?

  Obtaining the required amount of finance
• Why is managing cash flow important for entrepreneurs?

  To ensure liquidity and avoid overtrading
• How do established businesses pose a challenge to new entrepreneurs?

  They have existing brand loyalty and marketing strategies
• What is necessary for attracting customers as an entrepreneur?

  Effective marketing strategies
• What is essential for retaining customers?

  Quality of the product or service
• What are the key characteristics of successful entrepreneurs?

  • Creativity
  • Resilience
  • Risk-taking ability
  • Strong organization skills
  • Strong work ethic
  • Vision
  • Leadership skills
• How might an entrepreneur's role change as the business grows?

  They may focus more on strategic planning
• What should an entrepreneur consider regarding organizational culture?

  How they want that culture to be
• What is a key responsibility of an entrepreneur as their business becomes successful?

  Delegating tasks to others
• What are the main challenges entrepreneurs face when starting a business?

  • Obtaining finance
  • Managing cash flow
  • Competing with established businesses
  • Attracting and retaining customers