1 / 23

Entrepreneur

Entrepreneur. DO NOW. What is the purpose of business Activity? businesses that use resources to meet the needs of customers by providing a product or service that they demand. 2. List all four factors of production? Land, capital, labour and enterprise 3. What is meant by Added Value?

greta
Télécharger la présentation

Entrepreneur

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Entrepreneur

  2. DO NOW • What is the purpose of business Activity? businesses that use resources to meet the needs of customers by providing a product or service that they demand. 2. List all four factors of production? Land, capital, labour and enterprise 3. What is meant by Added Value? the difference between the cost of purchasing raw materials and the price the finished goods are sold for. 4. Define Opportunity Cost? The benefit of the next most desired option which is given up. • What is meant by scarcity? society has insufficient productive resources to fulfil all human wants and needs

  3. Richard Branson • http://www.youtube.com/watch?v=DudfBIxw6do

  4. Characteristics of Successful Entrepreneurs • Innovation – the entrepreneur must be able to attract customers using innovation, presenting their business as being different from others in the same market. • Commitment and Self Motivation – they must stay focused on the task and work hard (often long hours) to ensure they are a success.

  5. Characteristics of Successful Entrepreneurs • Multi Skilled – An entrepreneur will be required to cover all functions of the business. I.e. selling, promoting and doing the accounting. • Leadership Skills – The entrepreneur will have to lead by example and motivate people to follow them.

  6. Characteristics of Successful Entrepreneurs • Self Confidence – Most Entrepreneurs will fail in business and make mistakes the ability to not get down and bounce back is crucial. • Risk Taker – They must be willing to take risks without risk there is no reward.

  7. Work Book Activity • Activity 1.2 page 7 • You have 15 minutes to complete this in class.

  8. Major Challenges faced by Entrepreneurs • Identifying successful Business Opportunities – entrepreneurs need to be able to identify a market need that will have sufficient demand to make the company profitable. • New Business comes from many sources (what sources can you think off?) • Hobbies, skills • Previous job • Franchising conference • Market Research

  9. Major Challenges faced by Entrepreneurs • Sourcing Capital – this is normally very difficult for entrepreneurs as they may not have the funds themselves or they may be unable to convince a third party (bank) to loan them the finance to get started. • Lack of any trading records to present to banks as evidence of past success. • Poor business Plan

  10. Major Challenges faced by Entrepreneurs • Location – This can be tricky for an entrepreneur because of lack of finance. Because of this reason entrepreneurs start businesses from home. (it will depend on the type of business) • What could be the potential disadvantages of starting business at home? • May not be close to your target market • Lacks status • Could cause family tension

  11. Major Challenges faced by Entrepreneurs • Competition - All businesses have competition and the entrepreneur is likely to be up against established businesses with more resources, they will require a POD to beat there competitors. • Customers – to sustain business they will need to build a customer base, and then encourage regular purchase to ensure survival.

  12. Homework • Question 1 and 2 Activity 1.3 page 9 • Blog Duty –Student to discuss today's lesson, others to check and comment

  13. DO NOW • List and explain the main characteristics of an entrepreneur and provide two examples of NZ entrepreneurs.

  14. Group work • In groups you are required to come up with reasons why business often fail in the early stages?

  15. Why new businesses often Fail? • Lack of record keeping – this is not just with accounting records but also other minor details as entrepreneurs try to remember everything, rather then keeping records. • Lack of Working Capital – running short of capital is the most common reason for business failure in the first year.

  16. Steps for healthy working capital • Construct a cash flow forecast • Inject sufficient capital into the business on start up so that you cover the slow start to business as customers get to know you. • Establish good relations with the bank so that short term problems may be overcome with overdraft extension. • Credit control ie under 30 days to collect money.

  17. Why new businesses often Fail? • Poor Management Skills – Entrepreneurs are normally very good at what they do but often lack important management skills such as leadership, decision making, communication etc • Changes in the business Environment – I.e. new competitors, legal changes, economic changes (recession) and technological changes.

  18. Business Failure - Video • http://www.youtube.com/watch?v=S_3Dj5GZJNc

  19. Impact of enterprise on a countries economy • In Pairs i want you to right down the impact enterprise has on the NZ economy? (10 mins)

  20. Impact of enterprise on a countries economy • Employment Creation – by starting a new business an entrepreneur will be creating new jobs initially they will be family members but with success they will employ more people decrease the economies unemployment. • Economic Growth – any increase in output of goods and services from a start up business will increase GDP of the country.

  21. Impact of enterprise on a countries economy • Firms Survival and growth – this will me increased employment and economic growth and they will also take the place of older businesses that are not needed anymore. • Innovation and Technological Change – new businesses bring new technology which makes the economy more competitive internationally.

  22. Impact of enterprise on a countries economy • Exports – the products that entrepreneurs sell may be exported overseas this will increase the value of a nations exports and make them more competitive internationally. • Personal Development – people who succeed acquire new skills and these skills make them a good role model for others which often leads to more entrepreneurs. • Increased Social Cohesion – High Unemployment leads to serious social problems the creation of new jobs and setting a good example entrepreneurs increase social cohesion in a country.

  23. Homework • List three benefits of entrepreneurship to the economy of NZ and explain why they are important? • Blog Duty –Student to discuss today's lesson, others to check and comment

More Related