Reward - GCSE Business Definition

What is reward?

In GCSE Business, reward refers to the financial and non-financial benefits an entrepreneur receives as a consequence of taking a risk in setting up or running a business. Shareholders can also be rewarded with benefits from their shares, even without involvement in day-to-day operations.

For entrepreneurs, financial rewards include earning an income and being able to keep any profit the business makes for themselves. For shareholders, rewards are dividends and the increase in the value of their investment over time.

Non-financial rewards for entrepreneurs include personal satisfaction, full control over their own working lives, and the freedom to pursue their interests or do something they love. For some entrepreneurs, these rewards are more important than financial benefits.