Monday, 9 September 2013

P2 Describe how successful entrepreneurs manage risk


Good morning year 12

P2 requires you to explain how successful entrepreneurs manage risk.  You already know that 
the entrepreneur is the magic ingredient that combines the factors of production, these being 
CAPITAL, LAND & FACTORIES, PEOPLE and RAW MATERIALS. Such resources can only 
be used once so if you use them doing one thing you generally cant use them again for 
something else.

Entreprenuers take risks in the hope that they will in return make a significant profit. The risk is 
usually great and the ability to reduce it will allow for the best opportunity of succeess and 
further success in new initiatives and ideas.  

HOW TO MANAGE THE RISKS may sound quite complicated but if you break business down 
into the following  
* Financial control and great book-keeping
Business planning – forecast v actual performance
Recruit high calibre people – roles and responsibilities – job description and people spec.
• Aims and smart objectives click here
Specificresponsibilities – maximise sales, minimise costs, 100% happy customers and staff

Plus great management accounts and book-keeping and maintaining high standards
  

I have attached the classroom resources above that illustrate your points.  P2 is due in on 
Wednesday 25th September 2013

Well done and good luck

Mr T

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