Learning objective
Explain why entrepreneurs embark on running businesses despite risk.
Read the explanation, check the common trap, then practise with flashcards and questions.
At a glance
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Flashcards
0
Questions
Topic
Competitive environment
Subtopic
Uncertainty and risk
Study support
Understand this objective
Quick explanation
Explain why entrepreneurs embark on running businesses despite risk
- This point belongs to Competitive environment, especially Uncertainty and risk.
- You need to be able to explain why entrepreneurs embark on running businesses despite risk.
- The key ideas to know are risk and entrepreneur.
- Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.
Key concepts
Why it matters
This objective helps connect Uncertainty and risk to exam-style questions, flashcards, and revision notes for Competitive environment.
Quick student answer
Give one reason why entrepreneurs might choose to start a business despite the risk involved.
Direct answer
Entrepreneurs are driven by the prospect of financial gain and personal fulfilment, which can outweigh the potential losses.
How it works
The answer links motivation (financial gain, personal satisfaction) to risk-taking, showing that entrepreneurs assess the potential rewards before deciding to launch.
Key terms
- entrepreneur: A person who initiates and runs a business, assuming financial risk in pursuit of profit and innovation.
Common trap
Assuming risk is always negative: Risk can also lead to growth and opportunity; entrepreneurs assess and manage risk rather than avoid it.
Related questions
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Flashcard prompts
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Revision tools
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Flashcards0 linked cards
Practice Questions0 linked questions
Revision notestopic notes
Open the full topic revision notes when you are ready to review this objective in context.
Open revision notesRelated learning objectives
- Explain the meaning of a market and competition.
Competition and markets
- Analyse potential impacts of competition on businesses.
Competition and markets
- Identify situations where businesses face minimal or no competition.
Competition and markets
- Explain risks businesses face and why all businesses face uncertainty.
Uncertainty and risk
- Explain activities businesses can use to minimise risks.
Uncertainty and risk