1. Describe what an entrepreneur is, using examples to illustrate why Peter Cruddas is a good example of an entrepreneur.
ANS : An entrepreneur is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit. An entrepreneur needs to be good at risk taking, organization and innovation. This case study focuses on the entrepreneur Peter Cruddas, who set up his own business CMC Markets in the early 1990s with just £10,000 of capital. Peter was able to spot a gap in the financial services market by using the latest technology at that time – the internet. Peter took the risk, got in first and quickly took the lead. He built a new online platform which was a great innovation at the time. His innovation led to a better way of managing client’s needs as dealers in financial markets needed several different accounts, all with different types of software, which was inefficient and unproductive, a problem that Peter’s services solved. Thus in Peter Cruddas is a good example of an entrepreneur who has made a lot of progress by encompassing innovative ideas, organizing them well and taking the risk to go ahead with them.
2. Explain the main traits of an entrepreneur and show which of these Peter Cruddas demonstrated in setting up and establishing CMC Markets.
ANS : The main traits that an entrepreneur must have are : 1) he should not be afraid to take risks. 2) he should be innovative in his ideas and approach so as to take smarter and more informed decisions and risks. 3) he should have the ability and the capriciousness to organize these ideas and innovations in form of a profitable business, taking advantages of all the opportunities and financial windows at his disposal. Peter Cruddas, who set up his own business CMC Markets in the early 1990s with just £10,000 of capital, took a great risk, starting out. But he used his abilities to organize and innovate, setting up very creative and efficient online platforms to take his...
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