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Understanding Enterprise: Key Concepts, Entrepreneurial Skills, and Business Success Factors

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monifa
20 diapositives · 406 Views · Jul 11, 2014

This comprehensive overview delves into the meaning of enterprise and entrepreneurship, exploring the motivations behind starting a business, and the essential characteristics needed for success. It discusses the common reasons why businesses fail, highlighting the importance of enterprise to the economy and available government support. The content also examines the advantages and disadvantages of business ownership, the necessity of creative thinking for innovation, and the protection of new ideas through patents and trademarks. Understanding these concepts is crucial for aspiring entrepreneurs.

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  1. Enterprise

  2. Learning objectives • What is the meaning of the terms enterprise and entrepreneur? • What are the main reasons for setting up a business? • What are the key characteristics required to become a successful entrepreneur? • Why do businesses fail? • Why is enterprise important to the economy and what are the main sources of government support?

  3. Business brains An entrepreneur is an individual who sets up a new business and has the skills needed to make it a success. Their drive to work for themselves is known as entrepreneurial spirit.

  4. Entrepreneurs and enterprise Entrepreneur is a term we hear often, but what do entrepreneurs do? Entrepreneurial activity is called enterprise; being an entrepreneur is about having the desire and skills to set up a business. Some people set up a business on their own after being employed by another company, whereas others might start a new business as soon as they leave school or college. What does entrepreneur and enterprise mean? Why do people set up their own businesses, rather than work for another firm?

  5. Non-financial start-up objectives People may start up businesses for non-financial reasons. These could include: • to pursue a hobby or personal interest • to have contact with other people • to do something challenging • to achieve a social or environmental aim.

  6. Benefits of starting up a business What other benefits are there of owning a business?

  7. Disadvantages of starting a business Starting up and running a successful business is not easy, some of the most common problems encountered include: • having to acquire all of the skills necessary to run a business such as book-keeping, knowledge of consumers and employment law • having to take full responsibility for decision-making • having to work long hours, perhaps over the weekend, and taking few holidays • having to accept a much lower income, or even none at all, until the business begins to make a profit.

  8. Make a tabletodisplay 3 advantages and 3 disadvantages of startingyourownbusiness.

  9. Watch video then page 13. What skills does Levi have? then video 2. Thedragon’s den

  10. Entrepreneurial skills

  11. Taking calculated risks Businesses face risks at all times, but the riskiest stage is usually at start-up. Around one third of all new businesses fail within the first three years. Entrepreneurs have to take decisions that not only risk their own money and reputations but also those of others, such as other investors and lenders. Taking a calculated risk involves weighing up the potential negative consequences of a decision with the rewards that could occur if the decision is a good one. Why is it impossible to avoid taking risks when running your own business?

  12. Business ideas

  13. The process of creative thinking Creative thinking is a valuable skill for anyone setting up and running a new business. It involves looking at an existing situation and assessing its strengths and weaknesses in order to identify possible new approaches. This may result in ideas for new products which satisfy customer needs more effectively. Entrepreneurs who can think creatively are likely to be more successful than those who rely on existing methods. Think of a relatively new product, such as the iPhone. Why is it a good example of creative thinking?

  14. http://www.bbc.co.uk/news/technology-21796888

  15. Protecting new ideas New product ideas need to be protected from competitors if a new business is to be successful. A business that wants to protect its new product designs can apply for a patent. This can prevent other firms from copying it for up to twenty years. Trademarks for business or product names, logos and symbols can also be registered at the Patent Office for exclusive use. The main drawback for new businesses is that the fees charged by the Patent Office can be quite high, adding to costs.

  16. Whyisitimportanttobecreative? • How can weprotectourcreativity?

  17. Why do new businesses fail? In 2009, around 36,000 companies in the UK were predicted to fail; many of these would not even survive their first year of trading. Some common reasons why new businesses fail include: • inadequate planning • lack of market research • insufficient finance • poor cash flow management • failing to accurately estimate or control costs • worsening economic conditions. Can you identify two more possible reasons for business failure?

  18. Who wants to be an A* student?

  19. Glossary