1
CHAPTER OBJECTIVES
You will be able to:
CH. 1 ENTERPRISE 1. Understand what business activity involves
2. Analyze the meaning & importance of value added
3. Recognize the key characteristics of successful entrepreneurs
4. Assess the importance of enterprise and entrepreneurs to a country’s economy
5. Understand the meaning of social enterprise and the difference between this
and other businesses
1 2
,2
ENTERPRISE & ENTREPRENEURS ROLE OF THE ENTREPRENEUR
Entrepreneur – someone who takes the financial risk of starting and managing a new venture
Characteristics of successful entrepreneurs
Innovation
Commitment and self-motivation
Multi-skilled
Leadership skills
Self-confidence and an ability to “bounce back”
Risk taking
3 4
,3
CHALLENGES FACED BY ENTREPRENEURS
Identifying successful business opportunities
Sourcing capital (finance)
Lack of sufficient own finance
Lack of awareness of financial support & grants available
Lack of any trading record to present to banks as evidence of past success
Poorly produced business plan that fails to convince potential investors
Determining a location
Competition
Building a customer base
5 6
, 4
PURPOSE OF BUSINESS ACTIVITY ADDED VALUE
The difference between the cost of purchasing raw materials and the price the finished goods are sold for
Provide a product or service or both
Value of output of finished goods,
Add value to resources to make them more desirable Cost of inputs/ Production process
includes the services, and ‘extras’ added
materials adds value
W/O business we are limited to what we can make/grow ourselves during production
7 8
CHAPTER OBJECTIVES
You will be able to:
CH. 1 ENTERPRISE 1. Understand what business activity involves
2. Analyze the meaning & importance of value added
3. Recognize the key characteristics of successful entrepreneurs
4. Assess the importance of enterprise and entrepreneurs to a country’s economy
5. Understand the meaning of social enterprise and the difference between this
and other businesses
1 2
,2
ENTERPRISE & ENTREPRENEURS ROLE OF THE ENTREPRENEUR
Entrepreneur – someone who takes the financial risk of starting and managing a new venture
Characteristics of successful entrepreneurs
Innovation
Commitment and self-motivation
Multi-skilled
Leadership skills
Self-confidence and an ability to “bounce back”
Risk taking
3 4
,3
CHALLENGES FACED BY ENTREPRENEURS
Identifying successful business opportunities
Sourcing capital (finance)
Lack of sufficient own finance
Lack of awareness of financial support & grants available
Lack of any trading record to present to banks as evidence of past success
Poorly produced business plan that fails to convince potential investors
Determining a location
Competition
Building a customer base
5 6
, 4
PURPOSE OF BUSINESS ACTIVITY ADDED VALUE
The difference between the cost of purchasing raw materials and the price the finished goods are sold for
Provide a product or service or both
Value of output of finished goods,
Add value to resources to make them more desirable Cost of inputs/ Production process
includes the services, and ‘extras’ added
materials adds value
W/O business we are limited to what we can make/grow ourselves during production
7 8
