Unit 2.



Unit 2.E N T E R P R I S EQuestion 4 on examOn completion, the student should be able to:Define enterprise.Identify the importance of enterprise skills in areas such as home, school, local community, Government departments, and business start-up.Explain the basic enterprise skills.Identify the characteristics of enterprising people.Analyse the importance of enterprise in business and the community(HL)Identify enterprise skills, opportunities, risks, and rewards from given data (HL).CHAPTER 4 – ENTERPRISEEnterprise ?is being innovative? and creative while taking ?personal/financial risk ?to achieve one’s goal.Enterprise is when an individual (or a group of people) takes the initiative/starts something new.Enterprise involves the risk of organising all the resources necessary to provide a product or service while exploiting an opportunity for a possible reward called profit.Examples of Enterprise:Personal Enterprise?–Enrolling in a night classBusiness Enterprise?–Diversification into new markets/new products/ Facebook?Mark Zuckerberg/Xbox Microsoft /iPad AppleGovernment Enterprise?–Rationalisation of different Government servicesSocial Enterprise??Special Olympics/fundraisingFamous Irish entrepreneurs include183896036195●Pat McDonagh2235835144780●John Magnier2329180164465●Geoff Read2158365232410●Mary DavisInternational entrepreneurs.1932305227330●Steve Wozniak2388870151765Vera Wang252920567310Sean CombsBusiness opportunities are like buses, there's always another one coming."? Richard Branson, founder of Virgin EnterprisesEnterprise ?is encouraged in Ireland byEnterprise IrelandLocal enterprise OfficeSolasCoca Cola national enterprise awardsLocal enterprise centresIntegrated rural development companiesEnterprise linkUniversities and collegesIn business, we are expected to know ?enterprise characteristics, enterprise skills andIntrapreneurship.Enterprise characteristicsThese are the special traits that a person possesses.ConfidenceThey have a very positive self-image and look for solutions and not problems. They have great self-belief and usually good intelligence levels. They use efficient methodsFlexibilityThey can change at short notice and are adaptable in their approach. They are prepared to deviate from plans when necessary. They check feedback to find improvements.Moderate risk takerThey would take calculated risks, which have been minimized. These would be financial and a person’s reputation. They are not afraid of failing. Some people are excited from taking risks; they are prepared to take calculated risks in pursuit of business success; seizing opportunities and doing something new.DecisiveThey have an ability to act on the spot and a willingness to take responsibility for decisions.They are single minded in their approach and do not blame others.InspirationalA person’s guides and directs subordinates to achieve tasks as efficiently as possible They lead the business and its people. They can get people to work together.EnergeticA person puts in the long hours of hard graft to make the business succeed. Entrepreneurs are self-driven. They stick with a task until it is completed.InnovativeA person looks for something original which will not be in direct competition with other firms. Entrepreneurs look for products and ideas that will set their firm apart. Having identified a gap in the market the entrepreneur gains satisfaction from doing something new and bringing it to market.IndependentThe person has the ability to stand alone, create a job for one’s self and be in control without relying on others for employment. The entrepreneur gains a sense of freedom from being their own boss/control over their own lives.OpportunisticEntrepreneurs have an ability to spot a gap in the market at short notice and to capitalise on a given situation.PersistentEntrepreneurs use persistence to overcome resistance They do not accept no as an answer. They are determined.RealisticA person must recognise their shortcomings and take appropriate action to overcome these shortcomings. An entrepreneur does not try to achieve the impossible. They put availability ahead of desirability.Enterprise skillsAre an ability or expertise that a person can be born with (innate) or it can be acquired (learned)Future focusedThis involves setting tasks to be achieved in the future and identifying the problem areas. It puts together the best available course of action to bring success.Inner controlThis means being in charge of your own destiny, being in control of your own future. It is driven by personal pride and determination.Risk managementThis is a strategic or planned approach to risk.This means gathering as much information as possible about uncertain situations and minimising these risks and eliminating them where possible e.g. installing smoke alarms, carrying out market research.Once a risk has been identified it can then be managed correctly (see insurance section)Strengths, Weaknesses, Opportunities, Threats analysisIt is used at the pre?planning stage and breaks the business down into four categories. It brings a structure to the planning process and improves the organising process.Strengthslocation of business. Brands. Patents.WeaknessPoor credit collection.Opportunities New markets. Expansion.ThreatsEU laws. New inventions.SEE Ryanair example later.Time ManagementThis means carrying out tasks as efficiently as possible in the time available. It involves quantifying of tasks, delegation of tasks strict monitoring and great discipline from everyone. Task importance is related to the time invested in it.Human relationsThis involves being good with people, understanding their needs and behaviours and being able to relate to the people in and around the business. People can do courses in communications and psychology to improve this area. Sympathy and a sense of humour usually help in this area.Reality perceptionThis skill uses a direct approach of “living in the real world” and ignoring emotions and doing what is best for the organisation within reason. It involves recognising one’s limitations and seeking advice to improve that area e.g. hiring an accountant to do the books.?Problem solvingEnterprising people who adopt a go-ahead attitude are said to be ?proactive whereas those who prefer to wait and see are said to be ?reactive .?Entrepreneurs wish to carry out tasks and must devise a strategy. One must know the desired outcome and tackle obstacles in a logical manner.DelegationThey assign authority, keep responsibility and demand accountabilityIntrapreneurshipVERY POPULAR WITH EXAMINERIntrapreneurship involves entrepreneurial activity within the business /employees come up with new ideas/take personal responsibility which may turn into profitable activities.Intrapreneurs are inventive, creative, and innovative; they are constantly looking for ways of growing/expanding the business; and improving business processes/ product without the financial risk.Methods of encouraging Intrapreneurship EDUCAPRINT QUESTIONEmpowerment/employee participation encourages creativity as it allows employees greater freedom on how to do their job by placing real power, responsibility, and authority in the hands of employees.Create a culture within the organisation where it’s okay to make mistakes.Financial rewards for effort and creativity. These rewards could involve a mixture of pay, incentives and benefits. For example, a bonus or profit-sharing scheme or share ownership scheme. John O’Leary could be given share options as a reward for his innovation.Teamwork encourages creativity among employees as it facilitates brain storming sessions as part of the product development process. The matrix structure used by EducaPrint Ltd could encourage further intrapreneurship.Resource provider. Make resources available to help employees to pursue their ideas (e.g. finance, time).Training program for employees and management, training them on the implementation of an intrapreneurial culture within a businessApplying EnterpriseAt home Doing a budget, varied menus, deciding a career. At school unsupervised study, raising money for charityIn public lifegoing up for election, lotto, tax amnesty. Suggestion boxesIn community meals on wheels setting up sporting organisations and raising fundsIn businessspotting a niche, green marketing, special offers, clever advertising, publicity.In enterprise we have risk and reward. Risk may be financial, or it could be the risk of business failure. Reward may be the “trappings” associated with personal wealth or it could be the “spiritual” reward associated with doing good in the community.As we have stated earlier the entrepreneur has the idea, organises finances, researches the project, and sets it up. However, the actual day to day running of the business may be left to a manager, and this leaves the entrepreneur to work on other new projects. The manager works for a salary and runs the business by leading communicating and motivating people and by planning, organising and controlling the various activities in the firm.The importance of enterprise to an economyIt helps to create employmentIt caters for the needs and wants of consumersIt creates wealth and a better standard of livingIt generates tax revenues which all us to have a welfare state for the less fortunate.Successful enterprise encourages further investment.It reduces the reliance on Multinationals.?Entrepreneurs have empathy, energy and intelligence.They should be good planners as well as being flexible people.Profit in the long and short run should be possible.Persistence will always overcome resistance.Entrepreneurs have self-belief and visionGood ideas, determination and an outlook that is customer driven are essential.Question 4Read the information supplied and answer the question which follows.“Colm has decided to form a tidy towns committee in his local village and enter the ‘tidiest village’ category of the National Tidy Towns competition in 2013”Discuss four entrepreneurial skills that Colm will require in developing this local community initiative.DecisiveColm must have an ability to act on the spot and a willingness to take responsibility for decisions. They are single minded in their approach and do not blame others.Colm has to decide on a budgetGood leaderA person’s guides and directs subordinates to achieve tasks as efficiently as possible They lead the business and its people. They can get people to work together.Colm must co?ordinate the Tidy Town projectInnovativeA person looks for something original which will not be in direct competition with other people Social Entrepreneurs look for ideas that will set them apart.Colm will have to differentiate his village from all otherPlanning and goal settingThis involves setting tasks to be achieved in the future and identifying the problem areas. It puts together the best available course of action to bring success.Colm could map out the village and clean it in sections(A)(i) What is meant by the term SWOT analysis?SW is INTERNALOT is EXTERNAL●Strengths, Weaknesses, Opportunities, Threats analysisIt is used at the pre?planning stage and breaks the business down into four categories. It brings a structure to the planning process and improves the organising process.(ii) Conduct a SWOT analysis on a business of your choice. (Include two points under each heading)Name of Business; NiveaStrengthsNivea has strong brand recognitionIt has a strong financial baseWeaknessesIs the product still relevantIs the market research up to dateOpportunitiesNew male skincare productsTo convert new customers to use current productThreatsNew competition in the industryConsumers are more knowledgeable and expect moreEnterpriseManagementIDEASEncourages innovationNot essential butintrapreneurship isrewardedDAY TO DAYInvolved at theResponsible for dailyBeginningtasks? SKILLSACTIVITIESREWARDProfits self-satisfactionSalary and BonusSpiritual ................
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