People who set up businesses are called entrepreneurs
Entrepreneurs are the owners and without them businesses would not exist in the private sector
Roles played by entrepreneurs in business
1. Innovating
2. Risk taking
3. Organising
4. Decision making
Entrepreneurs as innovators
They try to make money out of a business idea, which might come from spotting a gap in the market, a new invention or market research
Many people set up a business by copying or adapting what another business does
Entrepreneurs as organisers
They buy or hire resources, such as materials, labour and equipment, and use them to make their products. Organising involves giving instructions, making arrangements and setting up systems
Entrepreneurs as decision makers
They make decisions on how to raise finance, product design, choice of production method, prices, recruitment and wages
Entrepreneurs as risk takers
They risk losing any money they put into the business, and possibly more, if it fails. However, if the business is successful, they will be rewarded with profit
