→ Entrepreneurs are individuals who organise factors of production, take risks, and make decisions to run a business
→ Risk-taking
→ Willingness to take calculated risks in uncertain situations
→ Invest money and time without guaranteed success
→ Analysis:
→ Risk-taking enables entrepreneurs to start and expand businesses
→ Higher risk can lead to higher rewards (profit)
→ Evaluation:
→ Too much risk may lead to business failure
→ Successful entrepreneurs take calculated (informed) risks, not blind risks
→ Innovative
→ Ability to develop new ideas, products, or processes
→ Helps businesses stand out from competitors
→ Analysis:
→ Innovation creates competitive advantage
→ Can increase demand and market share
→ Evaluation:
→ Innovation can be costly and time-consuming
→ Not all ideas succeed → risk of failure
→ Hardworking and Determined
→ Willing to work long hours and stay committed
→ Shows persistence even during difficult times
→ Analysis:
→ Helps overcome challenges and ensures business survival
→ Increases productivity and efficiency
→ Evaluation:
→ May lead to stress and burnout
→ Hard work alone is not enough without good decision-making
→ Organised and Leadership Skills
→ Ability to manage resources and people effectively
→ Leads and motivates employees
→ Analysis:
→ Good leadership improves employee performance and morale
→ Efficient organisation reduces costs and improves output
→ Evaluation:
→ Poor leadership can lead to low motivation and inefficiency
→ Leadership style must suit the business situation
→ Good Decision-making
→ Ability to make quick and effective decisions
→ Uses available information to choose the best option
→ Analysis:
→ Better decisions lead to business growth and profitability
→ Helps respond to market changes
→ Evaluation:
→ Decisions are made under uncertainty → may be incorrect
→ Requires experience and accurate information
→ Confident and Self-motivated
→ Belief in own ideas and ability to succeed
→ Does not rely on others for motivation
→ Analysis:
→ Confidence helps in taking initiative and leading others
→ Encourages persistence in competitive markets
→ Evaluation:
→ Overconfidence may lead to poor decisions
→ Needs to be balanced with realistic judgement
→ Effective Communication Skills
→ Ability to communicate clearly with employees, customers, and investors
→ Analysis:
→ Improves teamwork and customer relationships
→ Helps in negotiating and promoting the business
→ Evaluation:
→ Poor communication can lead to misunderstandings and inefficiency
→ Essential for both internal and external success
→ Financial Awareness
→ Understanding of costs, revenue, and profit
→ Ability to manage budgets and cash flow
→ Analysis:
→ Helps control costs and maximise profits
→ Important for long-term sustainability
→ Evaluation:
→ Lack of financial knowledge can lead to business failure
→ May require professional support (e.g., accountants)