the entrepreneur - Ch 16

enterprise

any attempt to start or do something new. enterprise is about turning ideas into actions, using creativity and willingness to try new things.

entrepreneur

a person who takes the initiative as well as the personal and financial risk involved in setting up an organisation.

example of an entrepreneur

Mary Ann o'brien set up Lily o'briens chocolate.

Intrepreneur

An employee who is tasked with developing an innovative idea or project within a company.

Example of an intrepreneur

3M, paul buchheit (made gmail)

characteristics of an entrepreneur (7)
RRTIPFDDSC

Realistic risk takers, innovative, proactive, flexible, decisive, determinded, self confident

realistic risk takers (4)

willing to take risks with their money + time to set up a business, no guarantee of success, research carefully, only take a chance if reasonable chance of success

innovative

being innovative means being able to do something in a new or different way

e.g of an innovative entrepreneur

steve jobs, made the first ever smart phone

proactive

ready to make things happen instead of waiting for someone else to do it.

flexible

adapt when things dont go to plan.

self confident

believe in themselves + their business ideas

decisive

able to make timely decisions +take responsibility.

determined

do not give up when there are obstacles

skills of an entrepreneur (6) AO,PG,TM,AM,HR,AM

ability to identify opportunities, planning + goal setting, time management, ability to manage money, human relation skills, ability to assess + mange the risk

rewards + risks of becoming an entrepreneur (rewards 5)

be your own boss, make the most out of a gap in the market, keep all profits of a business, prove something to themselves, flexible hours

risks of being self employed (6)

you may lose the money you invested + personal assets, must work very long hours to get the business running, very time consuming, sales vary = income varies, may not have necessary skills, personal reputation may suffer if business fails.

Role of entrepreneur in an organisation (6) gi,tr,vm,lm,lp,rf

generates ideas, takes risks, provides visions + motivation, provides leadership + management, creates long term plans, raises finance

generates ideas

comes up with new ideas or new uses

takes risks

puts ideas to practice

provides vision + motivation

sets goals + motivates all involved staff

provides leadership and management

entrepreneur is usually the manager + will provide leadership (chief executive)

creates long term plans

turns their visions into business plans, help finance guide it's future growth

raises finance

they need to raise finance + attract investment + funding

role in economy (7) MR, GS, JW, TDS, SL, T, FT

makes use of resources, provides goods + services, creates jobs + wealth, provides training + develop skills, raise standards of living, taxation, foreign trade

role in society (5) ps, ia, ec,s,sl

provides services, develop infrastructure + amenities, enterprise culture, sponsorship, increased standards of living x

Sources of ideas

brainstorming, random ideas, growing trend in the market, gap in the market, hearing someone complain about a something.

example of an entrepreneur who used brainstorming

three friends in university brainstormed and came up with the ideas of smoothies, company = innocent smoothies.

brainstorming

a way of working together to generate ideas

sources of new product ideas for existing businesses (internal 4)

brainstorming sessions, sales personnel, ideas from employees in the business (intrapreneurs), the research + development department

sources of new product ideas for existing businesses (external 4)

competitors, import substitution, customer complaints or feedback, market research

market research

gathering + recording + analysing information about consumer preferences for a good or service in order to make informed decisions about a potential market.

import substitution

replacing imports with goods + services produced in ireland.

competitors

looking at competitors products and using some of their product or service ideas, while being mindful of copyright laws.

e.g of using a competitors product

iphone, many companies make phones that are just a bit different.

the product development process(7)

idea generation, product screening, concept development, feasibility study, prototype development, test marketing, product launch

step one

idea generation - think up as many new ideas as possible

step two

product screening - best ideas are considered, unworkable ones are scrapped

step three

concept development - identify usp, make it different from the other products on the market

step four

feasibility study - carried out to see if the idea is commercially viable, possible to make? produced and sold properly in the current market?

step five

prototype development - develop a sample or a model, can be tested + altered

step six

test marketing means that the product is tested on a small sample of the market to find flaws, and customer reaction.

step seven

product launch - product goes into full scale production and is introduced to the market