The Role of the Entrepreneur

The Role of the Entrepreneur

Jackie Williams G00083202

Grantham University

An entrepreneur is a person that creates, organizes and manages a business while trying to make a profit. The first thing an entrepreneur needs to do is to think of an idea. They have to be inquirers so they can gather as much information as possible. They need to constantly reflect on their decisions. They must be risk-takers because there is always a chance that their business will not succeed. They must be open-minded when presenting their ideas and receiving feedback. Entrepreneurs must be good communicators when sharing their ideas with investors and when advertising and promoting their company. Entrepreneurs must be knowledgble about business law. For example, they may want to apply for a patent. They must also be principled and caring towards their employees and customers. By being hardworking entrepreneurs, we all have the opportunity to be very successful.

People respond predictably to positive and negative incentives. Rewards are positive incentives that make people better off. Penalties are negative incentives that make people worse off. Both positive and negative incentives affect people’s choices and behavior. People’s views of rewards and penalties differ because people have different values. Therefore, an incentive can influence different individuals in different ways. Responses to incentives are predictable because people usually pursue their self-interest. Changes in incentives cause people to change their behavior in predictable ways. Incentives can be monetary or non-monetary. Acting as consumers, producers, workers, savers, investors, and citizens, people respond to incentives in order to allocate their scarce resources in ways that provide the highest possible returns to them.

Entrepreneurs who make a loss, however, have reduced the value created by the resources under their control; that is, those resources could have produced more value elsewhere. Losses...