Business - Chapter 15, 16 and 17: Impact of Entrepreneurs and Enterprises

Enterprise

Any attempt to start or do something new using creativity and innovation.

Social Entrepreneurs

Create organizations that benefit the wider community

Characteristics

A characteristic is a personality trait that you are born with.

Realistic Risk-Taker

A person who researches carefully and weighs up the risks involved with a big decision and take a chance only if they feel they have a chance of success

Proactive

A person who is prepared to take decisive action and make things happen, rather than waiting for someone else to do it

Rewards of being an entrepreneur

> You are your own boss and you get to make all the decisions in the business.

> You keep some or all the profit the business makes.

> It may be possible to have more flexible working hours provided you meet the needs of your customers.

> You have a great sense of satisfaction if the business is a success.

Risks of starting your own business

> You may lose the money you invested in the business if it fails. In some cases, the entrepreneur may lose their own money or personal assets. This is a major risk of starting business as a sole trader.

> You will need to work long hours to get the business up and running and to oversee all aspects of the business.

> You may find it difficult to take time away from running the business.

> Sales may vary each week, so income is not guaranteed.

> You may not have all the necessary skills to set up and run a business.

> Your personal reputation and credit rating may suffer if the business fails.

Feasibility Study

A study carried out to see if an idea is commercially viable

Intrapreneur

an employee tasked with developing innovative ideas, products, or projects within an established organization

Financial/Commercial Enterprise

An enterprise that aims to make a profit by selling a product or service.

Role of Financial Enterprises

• Provide goods and services

• Provide employment opportunities

• Pay tax which helps the Government develop public services

• Provide finance for organisations and individuals

• Contribute to economic growth

Support for Financial Enterprises

• Financial Advice and direct support

• Mentoring service

• Help with R&D

• Help with exporting

Non-Commercial Enterprise

An enterprise that has not been set up for the sole purpose of making a profit (GAA)

Social Enterprise

One that puts people and community ahead of personal or financial gain. Social Enterprise try to tackle social, economic and environmental issues. (Credit Unions, Focus Ireland, etc.)

Role of Social Enterprises

• Tackle social issues

• Provide services and support for communities

• Provide an opportunity for people to volunteer and develop new skills.

• Create an enterprise culture

Cultural Enterprise

An enterprise that provides access to visual arts, theatre, film, music, heritage, sports etc.

Role of Cultural Enterprises

• Promotes art and culture

• Supports local economy

• Provide entertainment

Economic Growth

Refers to an increase in the amount of goods and services produced in an economy from one year to the next

Positive economic impacts

• Employment

• Tax revenue

• Improved standard of living

• Economic growth

• Promotes an enterprise culture

• Multiplier effect

Negative economic impacts

• Pressure on resources

• Housing

• Crowding out

• Over-reliance

Positive social impacts

• More local services

• Sponsorship

• Sustainable communities

• More choice/lower prices

• for consumers

• Better quality of life

Negative social impact

• Population

• Traffic

• Social tension

Positive environmental impact

• Pollution controls

• Recycling facilities

• Energy efficiency

• Land usage

Clean technology

Clean technologies and designed to be more sustainable and to reduce negative environmental impacts

Negative environmental impacts

• Pollution

• Unsustainable use of resources

• Habitat destruction