Entrepreneurial Motives

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes 

Profit as an Incentive

• Entrepreneurs take risks to gain the reward of profit
• Entrepreneurs want to generate profit and avoid making a loss
• Entrepreneurs make a profit by bringing together the different factors of production

Non-financial Motives

Ethical Stance and Social Entrepreneurship

• Some entrepreneurs may focus on impacting the world and could develop a product aimed at increasing the standard of living of people
• Others may want to improve society
• In comparison to employees, entrepreneurs have more impact on wider society

Independence

• Being an entrepreneur offers a lot of flexibility, such as working from home and can work the hours they wish to – they are not confined to the office rules
• Because of the independence and flexibility that entrepreneurs possess, they have more control over their lives

Quick Fire Quiz – Knowledge Check

1. Explain how profit acts as an incentive for entrepreneurs (3 marks)

2. Identify and explain two non-financial motives for entrepreneurs (6 marks)

Next Revision Topics

• Role of an Entrepreneur in an Economy
• The dynamics of competition and competitive market processes

A Level Economics Past Papers

• AQA
• Edexcel
• OCR
• WJEC