Entrepreneurship

Objectives

• Understand the functions of entrepreneurs and innovation within an organisation

• Develop knowledge of what makes a good entrepreneur using an examples

• Understand the importance with economy

What do these 3 people have in common?

Snoop Dog

Mel Gibson

Paris Hilton

Scale these entrepreneurs in order of how much you think they are worth.

Bill Gates

Stelios Haji-Loannou

Theo Paphitis

Richard Branson Oprah Winfrey

Peter Jones

Deborah Meaden

Order of wealth

1. Bill Gates £30 b2. Oprah Winfrey £1.3 b3. Stelios Haji-Loannou £1.29 b 4. Richard Branson £2,700m5. Peter Jones £157m6. Theo Paphitis £135m7. Deborah Meaden £40m

Characteristics of entrepreneurs

• Self-confidence• Self-determination• Being a self-starter• Judgement• Commitment• Perseverance• Initiative• Risk Taking

Motives for becoming an entrepreneur

• Financial reward• Independence• Building a business• Job satisfaction• The product

Government Support

• Promotes creation of small business• Small businesses are vital for the success of the

economy• New products and ideas provide essential

competitive dynamism in the economy• Government set up business link• Grants and subsidies offered• Princes trust scheme

Risk and opportunity costs

• Risk of failure is a big motive• If the business fails large debts may have to be

paid off• The opportunity cost of an activity is the

benefits lost for the next best alternative– High for entrepreneur

Factors of production

• Are business resources

• An entrepreneur develops the idea then hires and organises: Land – Not just where the premises are but includes natural

resources, both renewable and non-renewable. Labour – The workforce of the business. It is possible to

improve the human resources by training. Capital – Sometimes described as the artificial resource

because it is made by labour. Includes tools and machinery for examples.

TASK• Working with a partner• Choose an entrepreneur from the list on the board• Research the entrepreneur and find out: A brief description about them What characteristics do they have – innovation, organisation,

risk taking, managing ? What has made them successful?

• Give a 3 minute presentation back to the group about your findings

• You have 25 minutes!

Question

• Why are entrepreneurs so important to the success of the UK economy? (8)

Summary

• Understand the attributes an entrepreneur has and the risk involved

• Know what support is available to an entrepreneur

• Have examples of entrepreneurs