Unit 2: Enterprise Flashcards
enterprise
enterprise refers to any attempt made by an individual or group of people to start something new
entrepreneur
an entrepreneur is a person who spots a gap in the market and comes up with a business idea to fill the gap. an entrepreneur takes personal and financial risks when setting up a business and hopes to earn a profit
reasons for becoming an entrepreneur
- be your own boss
- varied work day
- unemployment
- more money
social enterprise
a social/not for profit enterprise has a social/environmental aim. it is run like a business and profits are used to benefit the cause rather than the owners
characteristics of an entrepreneur
- decision making
- risk taking
- determination
- self-motivation
- self-confidence
- creativity
decision making
entrepreneurs make quick/clear decisions. weigh up pros and cons and choose best option for business.
takes full responsibility for decisions
risk taking (C)
entrepreneurs take financial and personal risk and view failure as a learning experience. ensure they take calculated risk (reasonable chance of success)
determination (C)
determined to find solutions to problems. do not give up easily when faced with obstacles or failures
self-motivation
intrinsically motivated to succeed. have the personal drive and ambition to achieve goals
self-confidence (C)
believe in themselves and their idea. not put off by other peoples opinions
creativity (C)
think outside the box and come up with new ideas and new ways of doing things
entrepreneurial skills
- decision making
- proactive
- networking
- risk management
- human relations
- realism
proactive (S)
take action and make changes before they need to be made rather than waiting for a situation or problems to arise
networking (S)
involves meeting new people and exchanging information. people are useful professionally/socially
risk management (S)
entrepreneurs exposed to personal, commercial and financial risks. must identify these risks and find ways of reducing their likelihood e.g. fire alarms, insurance
human relations (S)
able to build relationships with people and bring out the best in them. use their HR skills to persuade people to help them
realism
can recognise when things are going wrong and take action to make positive changes
intrapreneurship
involves entrepreneurial activity by employees within the business by coming up with new ideas or ways to improve and grow the business and generate a profit
ways to encourage intrapreneurship
- training programs
- rewards
- workplace culture
- teamwork
- resource provider
training programmes (intrapreneurship)
employees can receive training on how to come up with and develop new ideas that benefit the business
rewards (Intrapreneurship)
employees can be offered financial rewards for ideas used by the business to reduce costs or increase profits
workplace culture (intrapreneurship)
the business creates a workplace culture where employees are encouraged to be intrapreneurial and know that it is ok to make mistakes: develop new ideas without fear of punishment
teamwork (intrapreneurship)
the business should give employees the opportunity to work in teams: encourages employees to brainstorm and develop better ideas as a group
resource provider (intrapreneurship)
the business can give employees access to the resources needed to help them come up with new ideas to benefit the business, e.g. raw materials, time, finance
