Unit 2 - Enterprise

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Copyright 2012

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Entrepreneurship/Enterprise:
The willingness of an entrepreneur to seek an opportunity
and take the risks involved in starting and managing a new
Business with the aim of making a profit.
It requires initiative and risk-taking in planning, organising,
controlling and directing a new Business venture.
E.g. Richard Branson setting up Virgin in the 1970s initially
as a mail order music shop for a profit to becoming a major
record label and diversifying into airlines,
telecommunications, TV, Cola. Business opportunities are
like buses, there's always another one coming.
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Definition: Entrepreneur
An Entrepreneur is the person who engages in
entrepreneurship. Uses initiative and takes
risk in starting up a new business with the aim
of making a profit.

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Entrepreneurial CHARACTERISTICS
(typical ABQ Question)
1. Risk-taker: takes both financial and reputational
risks in starting and managing a new business
venture. They assess the risk of failure however if
they feel a project is worthwhile they go ahead with
it. Limited Liability of Companies helps reduce the
financial risk.
2. Creative: ability to come up with new ways of doing
things, to discover new ideas, develop new products.
Thinking outside the box.
E.g. The late Steve Jobs re-took the reins of Apple
in 1997 to steer them from potential failure to a
world power once again with the MacBook and
the iPod.
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Entrepreneurial CHARACTERISTICS
3. Realistic: have an honest view of their own capabilities
and assess their own limitations. They seeking advice and
help when and where required. When looking at the
potential of the Business and setting objectives they are
realistic. They have good judgement.
4. Decisive once situations/information have been
assessed, action is taken quickly to achieve the best
results. Decisions are clear and entrepreneurs take
responsibility for any decisions they make irrespective of
the outcome. They show an ability to make decisions
quickly as situations change. This is important as the
Business needs to adapt and respond to change.
E.g. Simon Cowell - "I've always treated the music
business as a business. Whether I'm making TV shows or
signing artists, you have to do it by the head and not the
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heart -- and I run my
businessesthat way."

Entrepreneurial CHARACTERISTICS
5. Ambitious/Self-Confident: belief in themselves and that
they will succeed, They see opportunities where others
see difficulties. Their self-confidence helps them solve
problems greatly when issues arise, i.e. problem solvers
not finders.
E.g. Michael O Leary created the first low cost airline
revolutionising travel in Europe to become affordable
for everyone where previously air travel was very
expensive.
6. Flexible: are adaptable as priorities change and
objectives may need to be revised. Flexibility enables
entrepreneurs to change their approach to a situation if
the original approach does not work and to adopt others
points of views where they see fit.
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Entrepreneurial SKILLS
1. Self(Stress)-Management: being disciplined in
Business, taking the initiative to make the most of
a situation and ensuring a work/life balance. One
needs to manage stress from work and focus on
tasks at hand.
2. Problem Solver identify crucial issues and use
experience knowledge and instinct to solve them.
3. Time Management ability to achieve your
goals/objectives on time. Also includes judging
best time to introduce a new idea/product or
start a new Business.
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Entrepreneurial SKILLS
4. Interpersonal Skills: ability to manage people and
build good working relationships which will benefit
the Business. One needs the ability to listen,
communicate effectively, to persuade, to motivate
and to accept others views.
5. Decision Making in the short term, looking at
various options and their benefits and drawbacks
and deciding the best one to choose. Seizing
opportunities in every situation to potentially get
high returns.
6. Setting Goals ability to plan ahead for the future,
set clear goals/ objectives and outline how they are
to be achieved.
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Enterprise in Action
In New/Existing Business:
Each Business is started by an entrepreneur. A
Managing Director may decide to expand the
business into new markets (E.g. UK Market) in an
effort to increase sales and profits.
At Home:
Enterprising may be seen in preparing a household
budget, estimating income and expenditure and
planning ahead based on this information. It also
may be seen in the through a person selling
homemade goods at a local market or providing
guitar lessons.
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Enterprise in Action
In the local Community:
Enterprise can be seen in the establishment of
Community Organisations where people in the
community gather and share common interests
such as adult education classes, music lessons or
sports teams. Interpersonal skills are important
here especially for activities which require a lot of
human effort e.g. the Tidy Towns Competition.
Profit is not the motive but to develop the
community.
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Enterprise in Action
In Government Departments:
Enterprise can be seen through civil servants coming up
with new ideas to solve problems in the country or to
help create jobs. E.g. the introduction of the Job Ridge
internship program.
Enterprise Ireland helps entrepreneurs around the
country in setting up new Businesses.
The IDA works to attract foreign firms or enterprising
people to establish Business here. E.g. Facebook
In Work:
Enterprise in the Workplace is termed intrapreneurship
(Key Definition). Employees who are creative and
innovative are usually rewarded via promotion.
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Intrapreneurship
Coming up with new ideas from within a
business (within your job). Risks involved may
not be financial however reputational risks
exist.
Example: Google allow employees spend 10% of
their time on their own ideas and projects.

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Why Become an Entrepreneur

Seeking a challenge to develop a new idea in
an effort to be successful and profitable.
Desire for to work for yourself and make your
own decisions, to feel secure and in control,
be your own boss with freedom and flexibility.
Create a profit thereby making one more
financially secure than depending on an
employers wage.
Take a risk if one has the financial resources to
do so and hope for success.
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Role/Importance/Benefits of an
Entrepreneurs/Enterprise
Come up with new ideas which may be turned
into successful Business Ventures and change
peoples lives e.g. the internet.
Take the associated risks in setting up a new
Business venture and invest capital which existing
businesses may fear.
Manage the Business and oversee its path
forward e.g. expansion.
Creation of Employment: Employ suitable and
skilled staff and ensure customer satisfaction at
all times.
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Role/Importance/Benefits of an
Entrepreneurs/Enterprise
Provide Revenue for the Government e.g.
Corporation tax, VAT, PAYE
Indigenous Enterprises will remain loyal to
Ireland thereby supporting local economy.
Enables individual talents and potential to be
exploited via opportunities and challenges.
Creates business for other service providers,
e.g. banks, ESB, phone, utilities.
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