10 Questions
What is a characteristic of entrepreneurs that enables them to take bold decisions?
Risk-taking
What is the primary purpose of social enterprises?
To achieve social and environmental purposes
Why do some entrepreneurs start their own business?
To gain flexibility and independence
What is an example of an ethical motive for starting a business?
To trade in a more environmentally friendly way
What is a skill that entrepreneurs need to possess?
All of the above
What is a common characteristic that distinguishes entrepreneurs from others?
They take a calculated risk through starting a business
What is an example of a want?
Holidays
Which of the following is an example of a micro business?
Lawn and landscaping companies
What is the main motive of an entrepreneur who aims to make just enough profit to keep the business moving?
Profit satisficing
What is one of the roles of an entrepreneur?
Take the initiative in trying to exploit a business opportunity
Study Notes
Micro Businesses
- Examples of micro businesses include lawn and landscaping companies, street vendors, carpenters, plumbers, independent mechanics, machine shop operators, shoemakers, small farmers, and local coffee shops.
Small to Medium-Sized Enterprises (SMEs)
- Examples of SMEs include construction companies, retailers, wholesalers, manufacturers, dental practices, hair and beauty salons, bars and restaurants, gyms, and medical centers.
Needs and Wants
- Needs are essential goods and services required for survival, such as food, water, shelter, and warmth.
- Wants are goods and services that are desired but not essential for survival, such as holidays, smartphones, entertainment, and luxuries.
Entrepreneurs
- An entrepreneur is someone who takes a calculated risk to start a business.
- Roles of entrepreneurs include:
- Taking the initiative to exploit a business opportunity
- Conducting market research to spot gaps in the market
- Calculating and taking risks
- Making an investment to set up the business
- Going ahead with the business venture despite potential risks
Motives of Entrepreneurs
- Financial motives:
- Profit maximization: aiming to make the highest possible profit
- Profit satisficing: aiming to make a reasonable profit while achieving other goals
- Non-financial motives:
- Independence: working for oneself and having control over one's work
- Flexibility: gaining a better work-life balance
- Ethical reasons: trading in an environmentally or socially responsible way
- Social purpose: running a business with a social or environmental mission
- Personal challenge: seeking excitement and challenge in one's work
Entrepreneurial Characteristics
- Creativity
- Hard work
- Resilience
- Initiative
- Self-confidence
- Risk-taking
Entrepreneurial Skills
- Communication
- Team working
- Problem solving
- Organization
- Numeracy
- IT
This quiz covers different types of businesses, including micro businesses and small to medium-sized enterprises, and understanding the difference between needs and wants.
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