1.5.2 Characteristics and motives

• Characteristics of entrepreneurs: Creative, Hard Working, Resilient, Self-confident, Risk taker, and Shows initiative.
• Skill of entrepreneurs: Communication, Team Working, Problem Solving, Organisation, Numeracy, and IT.
• Profit maximisation means making as much profit as possible. To maximise profits, you need to minimise costs and maximise sales revenue.
• Profit satisficing is where you make enough profit to ensure an enjoyable lifestyle while pursuing other aims, eg. rewarding employees, invest in environmental projects, serve the community in some way.
• Ethical stance is where the entrepreneur does the right thing, for example: paying above the national minimum wage or buying fair trade supplies.
• Social entrepreneurship is where the entrepreneur is motivated to make a difference to a social problem, eg. helping homeless or helping young people gain qualifications.
• Independence means the entrepreneur doesn't need to report back to a boss, they have the freedom to pursue their own ideas, and have the freedom to use their skills effectively.
• Home-working allows the entrepreneur to fit a business round a family, and gives a good work-life balance. The owner can work hours that suit their lifestyle, they don't need to travel or buy a fixed property so saves their money, and there's less tension with colleagues.
• Flexibility means the entrepreneur can choose hours of the day to work and can take time off without having to ask anyone for permission.
• A person may become an entrepreneur as they want a challenge. It can be rewarding to build a business into something successful, and there may also be a thrill of taking the risk.