Entrepreneurial Motives

Entrepreneurial Motives

Courses Info

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


  • 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)


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