9609 · 1.1.2
The role of entrepreneurs and intrapreneurs flashcards
Revision flashcards for Cambridge 9609 The role of entrepreneurs and intrapreneurs (syllabus 1.1.2). Flip, recall, then mark a real past-paper question.
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Entrepreneur?
Person who organises factors of production, takes risk, seeks profit.
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Intrapreneur?
Employee who acts entrepreneurially inside an existing organisation.
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Types of innovation?
Product, process, market, organisational (4 types).
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Entrepreneur risks?
Financial loss, debt, reputation, opportunity cost of salary elsewhere.
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Entrepreneur rewards?
Profit, independence, satisfaction, wealth if business succeeds.
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Intrapreneur advantage?
Firm's resources and brand; lower personal financial risk.
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Intrapreneur need?
Management support, tolerance of failure, reward for ideas (2.2.4).
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Link to 1.1.3?
Business plan reduces risk by testing market before full launch.
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Define 'Entrepreneur'.
An individual who creates a new business, bearing most of the risks and enjoying most of the rewards. They are responsible for identifying a business opportunity and organising the factors of production to pursue it.
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What is the 'opportunity cost' for an entrepreneur?
The next best alternative forgone when choosing to start a business. This is often the stable salary, benefits, and career path from a paid job that they have given up.
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Distinguish between product and process innovation.
Product innovation is the creation of new or improved goods/services (the 'what'). Process innovation is the creation of new or improved methods of production or delivery (the 'how'), often to increase efficiency.
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Define 'Intrapreneur'.
An employee within a large organisation who is given the freedom and resources to create new products, services, or business lines, acting like an entrepreneur but within the company structure.
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What is meant by 'uninsurable risk' in an entrepreneurial context?
A risk that cannot be covered by an insurance policy, such as a change in consumer tastes, the launch of a superior product by a competitor, or a poorly executed marketing campaign. The entrepreneur must bear the full financial consequences of these risks.