Sample: Enterprise

 

ENTERPRISE


Entrepreneur

  • Person who spots an opportunity and takes the initiative to set up a business and make money
  • Financial risk – if the business fails, they will lose all their money
  • Personal risk – if the business fails, they will lose their self-esteem and self- confidence
    • e.g Bob Geldof set up his own TV production company, Planet 24, when he was angry with the quality of programmes on TV

 

Characteristics of entrepreneur

  1. Pro-active
  • Do not sit around waiting for things to happen
  • When they think of an idea they take action immediately
    • e.g when Mary Ann O’Brien set up Lily O’Brien’s chocolate she persuaded Superquinn to stock them
  1. Independent
  • Like to be in charge and working for themselves
  • Prefer to be giving orders rather than taking them
    • e.g when Richard Branson was 16 he left school and set up his first successful business
  1. Confidence
  • Believe in themselves and their ideas
  • Don’t allow themselves to be put off by what others think
  • Believe their business will succeed eventually
    • e.g a number of Denis O’Brien’s businesses failed (home shopping channel on sky) but he persevered and he is now a billionaire
  1. Self-motivated
  • Push themselves to achieve their goals
  • The drive to succeed comes from within
    • e.g Bill Gates never took a day off when he was setting up Microsoft
  1. Need for achievement
  • Burning desire to be successful
  • Ambitious and want to get on in life
    • e.g Denis O’Brien is one of Ireland’s leading entrepreneurs with extensive investments
  1. Risk taker
  • Not afraid of taking chances even though they may fail
  • They take sensible risks that have good chances of success
    • e.g Denis O’Brien was not afraid to take a chance and set up phone companies in the Caribbean and Central America
  1. Ruthless
  • Put their business ahead of everything else
  • The business takes priority in all situations
    • e.g Simon Cowell, the music entrepreneur sacked Cheryl Cole from American X Factor when the audience reacted negatively
  1. Creative
  • Inventive and good at coming up with new ideas
  • Need to think outside the box to be successful and to develop creative products
  1. Decisive
  • Make good decisions firmly and quickly
    • e.g when no manufacturers would buy James Dyson’s idea, he decided to set up his own factory

 

Skills of entrepreneur

  1. Human Relations
  • Must be good with people and know how to get along with them
  • Be able to persuade people to do what the business needs
  1. Time Management
  • Getting the essential tasks done in available time in order to achieve the business’s goals
  • May need to prioritise the most important tasks if time is limited
  1. Risk Management
  • Planned approach to minimising the risks a business is exposed to
    • Identify the risks facing business
    • Cost of these risks if they happen
    • Cost to protect business
    • Take appropriate measures
  • Insurance – annual premium which will result in compensation
  • Proper training – health and safety courses to reduce chance of accidents
  • Security measures – minimise risk of theft (CCTV, security guards)
  1. Decision Making
  • List all the possible solutions to a problem or opportunity and chose best one for business
    • Analyse opportunity or problem
    • List possible solutions
    • Advantages and disadvantages of each solution
    • Best solution with best advantages
  1. Reality Perception
  • See situations as they are rather than how they might want to see them
  • Realise when things are going wrong and don’t think otherwise
  1. Planning
  • Setting goals for their business to achieve
  • Come up with methods (strategies) to ensure their goals are achieved

 

An intrapreneur is an employee within a business who shows enterprise by using their initiative to think of a new idea to reduce costs of increase profits

  • e.g when some Microsoft workers saw the success of PlayStation, the thought of Microsoft developing a game. This lead to the creation of Xbox.

Promote intrepreneurship by:

  • Culture of enterprise – facilities available to staff (research area, capital….)
  • Reward staff
  • Teamwork – encourage each other to think of new ideas

 

Importance of Enterprise in Business

  • Provides the idea and the drive to set up the business
  • Help businesses increase sales or reduce costs
  • Creation of wealth (profit + wages)
  • Government taxes used for business grants

 

Importance of Enterprise in Community

  • Creates jobs and businesses for local people
  • Local people spend money in local shops so the businesses succeed
  • Motivates and encourages more entrepreneurs
  • Government receives taxes and pays out less social welfare