there are about 400,000 millionaires and 10 British billionaires in the UK and the richest person is a Russian Roman Abramovich who is worth about £7.5billion.
Check out these websites to get a feel of some entrepreneurs. Real Business Dragonsden Scotsman and this one here
Enterprise involves having NEW IDEAS, thinking of NEW PRODUCTS and thinking of new ways to sell OLD PRODUCTS. The key ideas of the entrepreneur are to do with bringing PRODUCTS to MARKET Inventing new products or services such as this or innovating old ideas such as the Blockbuster model like this
To do this the Entrepreneur's needs money. In business we call this FINANCE. They need this to DEVELOP products, TEST products, make CHANGES to products, and TELL people about PRODUCTS. They may need to set up PRODUCTION in a factory. They may need to EMPLOY people who will then want paying. They may need to buy RAW materials before they can start making the product and they may need to borrow START UP fiance by persuading others of the value of their product. This can be borrowed from other entrepreneurs and is then called VENTURE CAPITAL. They take RISKS for REWARDS.
The RISKS are - using their own money and that of others as well as their own reputation. Taking the risk is usually the hardest part of the enterprise. You need to be prepared to LOOSE and START AGAIN.
The REWARD. Apart from seeing the SALES fly out of the door and everyone wanting or using the product the real reward for an entrepreneur is the PROFIT. Profit is only achieved when the REVENUE is greater than the COSTS to produce a product or SERVICE.
QUALITIES of an entrepreneur include:
- Willingness to take advice - Listening to people that can help them, banks, marketing companies, friends and even from their customers
- Enthusiastic - Energy and enthusiasm which is often linked to a self belief.in the product that they are selling and be keen to persuade people to buy it.
- Hard working - They often need to put in long hours to ensure that all the jobs get done before they can employ others !
- Persistent - keeps on trying - The journey is not always a smooth one as things often go wrong regardless of how well you have planned it. To be successful they need to keep trying. Setbacks and success are daily occurrences.
Can I introduce you to Schoolmate and Mehir who has proposed and developed the initiative over the last year. How does his SWOT analysis stack up? How well would he pitch for VENTURE CAPITAL. Does he need any? and what would he use it for?
- What is a business quality shown by an entrepreneur?
- What do entrepreneurs take ? What do they develop?
- Define REVENUE
- Define PROFIT
- What is VENTURE CAPITAL
- Give three key QUALITIES of an entrepreneur.
- Suggest two sources of professional advice for an entrepreneur
- Describe what is meant by VENTURE capital
- Give two reasons why an entrepreneur might support other entrepreneurs
- Explain how important enterprise skills are to business
- Which qualities of an entrepreneur do you think is most important to success?
Think of a business idea that you would really like to take to market. Carry out a SWOT analysis before you look for venture capital. Do you have more STRENGTHS or WEAKNESSES. Are there more OPPORTUNITIES available or THREATS of failure
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Gaps in the market
Sources of business ideas
Risk and uncertainty
9 mark question click here