The purpose and nature of businesses - AQABusiness enterprise and entrepreneurship
Entrepreneurs may choose to set up a business for a number of reasons and there are a number of business sectors that it can be in. To be successful, entrepreneurs need to have a number of characteristics.
Enterprise is all about finding new business opportunities and taking advantage of them to make a profit. An entrepreneur is an individual who takes a risk to start a business.
The characteristics of an entrepreneur
Entrepreneurs need a number of characteristics in order to be successful. These include being:
Hardworking – when starting a new business, it is normal to work long hours. The entrepreneur will also need to carry out a variety of tasks.
Organised – the entrepreneur will need to keep on top of all the day-to-day tasks as well as planning for the future. They will have to arrange all of the finances and meet deadlines.
Innovative – the entrepreneur will have to keep coming up with new ideas to keep the customers happy.
Willing to take a risk – starting a new business comes with a lot of risk, an entrepreneur has to be willing to risk money, time and possibly give up their old job.
Objectives of an entrepreneur
entrepreneurA calculated risk-taker who sets up a business in return for financial gain. may have a number of reasons for starting their own business. These could be:
to be their own boss and have the independence and freedom to make their own decisions
to have more flexibility with their working hours
to follow an interest or hobby such as opening a book shop or a football memorabilia website
to increase their income and improve their quality of life
to fill a gap in the marketA gap in the market refers to a place in the market where there is demand for a product or service that is not currently being met.
to escape a job they are unhappy with
to fulfil an ethical or social goal
Objectives can be split into two different types, financial and non-financial objectives. Financial objectives link to money, such as making profit, a certain amount of sales or business survival. Non-financial objectives link to things other than money, such as personal satisfaction, challenge or independence.
