1.5.1 Role of an Entrepreneur

• Entrepreneur


  A person who creates a new business idea or invention and takes risks to make a profit
• Role of Entrepreneurs


  -Coordinate resources to start and operate a firm

  -Make decisions that determine the firm's success or failure

  -Taking financial, personal and professional risks
• Intrapreneurship


  Promoting entrepreneurial thinking and behaviour within an existing business to empower employees to take risks and innovate
• Barriers to Entrepreneurship

  -Lack of training

  -Access to finance

  -Fear of failure or lack of confidence

  -Entrepreneurial capacity
• Entrepreneurial Capacity


  An individual's ability to think creatively, take risks and identify and take opportunities
• Access to Finance

  Aspiring entrepreneurs especially from disadvantaged areas may struggle to secure funding
• Lack of Training

  Aspiring entrepreneurs may struggle to: develop a business plan, attract customers or manage finances as they lack the skills
• Fear of Failure


  Entrepreneurs may worry about financial risks like losing their assets and the stigma of failure
• Risk and Uncertainty


  Risk can be calculated and be prepared for and are taken to benefit the business whereas uncertainty cannot be calculated as it is a completely unexpected event
• Factors Causing Uncertainty

  -Environmental factors

  -Economic changes

  -Entry of new competitors

  -Changes in legislation

  -Changes in the ruling political party
• Benefits of Intrapreneurship


  -Firm benefits from their employees' creative potential giving them a competitive advantage

  -Employees have ownership over their ideas so motivation and retention increase

  -Employees are offered rewards and incentives for successful projects
• Ways to Expand

  -Diversify

  -Target other markets

  -License products

  -Mergers and acquisitions

  -Offering the firm as a franchise

  -Open another location