1. 1.5 Entrepreneurs and leaders 1.5.1 Role of an entrepreneur
Theme 1:
Marketing and people
What do these people all have in common? Who are they?
1.5 Entrepreneurs and leaders Role of an entrepreneur
Edexcel Business

2. 1.5.1 Role of an entrepreneur
In this topic you will learn about
Creating and setting up a business
Running and expanding/developing a business
Innovation within a business (Intrapreneurship)
Barriers to entrepreneurship
Anticipating risk and uncertainty in the business environment

3. Creating and setting up a business
What is an Entrepreneur?
A person who spots an opportunity and shows initiative and a willingness to take risks in order to benefit from the potential rewards
Where do ideas come from?
Brainstorming
Personal experience
Business experience
Market research
Where did Simon Lee get the inspiration for his translation business from?
How doing homework for friends inspired a global company

4. Creating and setting up a business
Creating and setting up a business will involve a number of steps including:
Generating an idea
Asking if the idea can add value
Conducting market research
Drawing up a business plan
Deciding on legal structure
Raising finance
How doing homework for friends inspired a global company

5. Purpose of Business plans
To try to secure external funding
To measure performance against forecasted performance
To have a target/objectives to work towards and how to get there

6. What do you think should go into a business plan?
The executive summary - a synopsis of the entire plan looking at the most important points
The business and products or services
The market e.g. size, share, competitors
The marketing strategy
The skills of the entrepreneur and other key employees
Operations
Financial forecasts

7. Running and expanding/developing a business
The entrepreneur is often also the hands on person making daily decisions, at least in the early years
This involves:
Managing resources including stocks, personnel and finances
Making marketing decisions about aspects of the marketing mix such as what price to charge and how to promote the business
Dealing with customers
Maintaining financial records

8. Running and expanding/developing a business
As the business grows the entrepreneur may need to change roles:
Employ staff
Use the services of experts e.g. an accountant
Delegate responsibility to others
And make other key decisions:
Move to bigger premises
Change suppliers
Expand product range
What are the issues facing a rapidly expanding ?
Janine Allis: From Bowie's barmaid to $230m businesswoman
Why might an entrepreneur find it hard to delegate?

9. Innovation within business
The characteristics of an entrepreneur include:
Creative and innovative
Enthusiastic and motivated
Good communication skills
Why are these also characteristics a business would look for in an employee?
Intrapreneurship is when employees in a larger organisation act in the same way as entrepreneurs
Entrepreneur research task
Entrepreneurship and intrapreneurship.
10 Things Entrepreneurs Need to Know about Intrapreneurship

10. Barriers to entrepreneurship
Would you want to be an entrepreneur?
Why is everyone not an entrepreneur?
Not everyone wants to be an entrepreneur – comfortable working for others
Lack of access to finance
Knowledge and know how
Risk-averse
Lack confidence
Limited skills
Or is it just not having an idea?
Are entrepreneurs born or can they be taught?
Are entrepreneurs born or can they be taught?

11. Risk and uncertainty Both risk and uncertainty deal with unknowns
Risks
It is possible to add a probability to quantify the degree of risk i.e. t is measurable
Uncertainties
It is not possible to add a quantifiable probability as the outcome is too unpredictable i.e. it is not measurable
Entrepreneurs have to anticipate both risks and uncertainties in the business environment

12. Risk and uncertainty Risks Uncertainties
Can be anticipated by entrepreneurs:
Market research
Understanding of the industry
Assessing own personal potential losses
Business plans
Uncertainties
Are harder to anticipate as outside of the entrepreneur's control:
Keep up to date with current business climate e.g. economic and political changes
Make plans for unexpected events (contingency plans)
Spread risk e.g. a number of products or suppliers

13. Risk and uncertainty What are the risks of being an entrepreneur?
What are the rewards of being an entrepreneur?
Do the risks outweigh the rewards or vice versa?
Is risk a good or a bad thing?
Are you a risk taker or risk-averse?
Risks
Rewards
Financial
Money Invested
Salary foregone
Esteem
Fear of failure
Proving self
Commitment
Time and effort
Loss of personal/social time
Profit motive
Return on Investment
Future security
Being own boss
Taking decisions
Not taking orders!
Self actualisation
Self satisfaction
Achievement

14. Test your self - 10 minutes
What is meant by the term entrepreneur?
State one source of business idea.
State one purpose of a business plan.
Briefly explain why a business may look for intrapreneurship in employees.
Explain one barrier to entrepreneurship.
State one way in which an entrepreneur may be able to identify risk.
With reference to an entrepreneur explain what is meant by the term uncertainty.
End

15. 1.5.1 Role of an entrepreneur
In this topic you have learnt about
Creating and setting up a business
Running and expanding/developing a business
Innovation within a business (Intrapreneurship)
Barriers to entrepreneurship
Anticipating risk and uncertainty in the business environment