Chapter 4 Entrepreneurs & Enterprise. Enterprise occurs when an entrepreneur identifies a need, problem or an opportunity that is not being satisfied and then tries to do something about it. `Enterprise refers to any attempt to start or do something new. debshoganteaching

Entrepreneur Tony Ryan Video Click Is a person who provides the initiative and takes the risks establishing a business. An entrepreneur is innovative and uses society’s needs to create business opportunities in the hope of making a profit. E.G. Richard Branson (Virgin Airlines), Pat McDonagh (Supermacs) Tony Ryan Video Click Mark Zuckerberg Video Click

Entrepreneurs risk their time, money and effort to develop the business idea, to set up a business organisation and to produce and sell a product / service , hopefully at a profit. The entrepreneur brings together the four factors required for the production of a good/service: Enterprise: ideas, initiative, hard work, risk taking provided by the entrepreneur. Land: land, raw materials and other elements from nature used in production.

3. Labour: workers with their skills, education, training and experience. 4. Capital: the finance to invest in buildings, machinery and other technologies used in production. This is provided by investors.

Where is Enterprise? Enterprise in business: a new business setting up dog kennels when dog owners are away. Enterprise in the home: growing your own vegetables. Enterprise in schools: Student enterprise awards. Enterprise in the community: a resident group getting together to plant flower beds Not for profit or social enterprises – charities/services Public Sector – Coillte, ESB, LEO

Intrapreneur Entrepreneur An employee working within an organisation who uses their initiative to act like entrepreneurs. Is a person who is innovative and enterprising within a business. This person develops new ways of doing things and identifies new opportunities for business development. Cut costs/new products/ Services/ better ways

Entrepreneurs Rewards Independence and freedom to be your own boss. Personal satisfaction of offering goods and services that they enjoy or believe in. Income. Enterprise can provide an outlet for a persons need for creative expression and new challenges.

Entrepreneurs Risk Personal Risks: Risk of failure Damage to reputation Stress / health Business Risks: Financial risk for investors Risk from rival firms Recession – fall in sales Change in consumer tastes

Characteristics of an Entrepreneur Is an attribute or a trait that is part of your personality. It is innate as you are born with it. Confident and Proactive – the ability to take the risk to begin and complete a venture. They have confidence in their own abilities. Proactive: Will not rely on others to act on something. They anticipate what is needed and does something about it. Reactive: Will rely on others to act on something. Will wait for things to happen before responding.

2. Determined / Motivated: Entrepreneurs become very determined and motivated once they set goals for themselves. 3. Innovative / Creative - willing to identify gaps in the market in changing situations. They identify new business opportunities or new ways of doing things better and more efficiently. 4. Realistic risk takers: They only take risks when the probability of success is high. 5. Decisive and Flexible: the ability to make quick and clear decisions. They are also flexible to respond to new and changing circumstances.

Skills of an Entrepreneur Is something that you learn over time with plenty of practice. Identify Opportunities: Entrepreneurs learn how to identify new opportunities, they try to anticipate changes to see what opportunities may arise from them. Set goals and plan: Turning a vision into reality requires a plan. Time Management: prioritise work, separating the important tasks from the less important tasks and ensure the most important jobs are done first.

4. Manage stress: Entrepreneurs must have strong self control 4. Manage stress: Entrepreneurs must have strong self control. They need to stay calm and not get stressed when under pressure. 5. Communication skills: Social skills – an ability to get along with people. Communication skills – speaking Listening skills – open to feedback from others even if it is negative. 6. Risk Management: Is a planned approach to managing possible chance happenings. All risks are identified eg. fire, theft….. Ryan Legacy http://blog.ted.com/2007/10/09/richard_branson/ Research top entrepreneurs

Time Management Is a skill that is used to make the best use of your time. You set goals You break the goals into tasks You prioritise You delegate (share out the work) Good time management reduces stress.

Risk Management Is a planned approach to managing possible chance happenings. All risks are identified eg. fire, theft….. The chance of the risk occurring is calculated Eg. 1% = low risk, 50% = high risk Calculate the cost if the loss were to occur. Calculate the cost of insuring the risk

Types of Risk Takers Risk avoiders Will not take a chance at all Risk neutral Will only take a risk if the reward and the chance of success is high Risk acceptors Will take a chance even if the chance of success is small.

Networking Is making links of contacts with other stakeholders. This helps improve business opportunities. Eg. Meeting people at golf clubs, Loins club….

Why is enterprise important? 1. Needs and wants of society are met 2. Profits can be reinvested to grow the economy 3. Creation of jobs 4. Creation of wealth 5. Creation of an enterprise culture 6. Increases the amount of revenue collected. 7. Personal satisfaction for entrepreneur 8. New products are continually being introduced 9. Business can respond to changing society 10. Not- for- profit enterprises provide many valuable charitable services

Enterprise in Ireland! The following factors have helped to make Irish people more willing to be entrepreneurs: There is now more wealth in this country ?? Not anymore due to RECESSION The educational system is constantly changing, producing young people with the skills needed in a modern world Emigration has helped to broaden the minds of Irish people to new opportunities & challenges

The banks now lend to new businesses to allow them to get off the ground. The govt. helps entrepreneurs to undertake research & establish new projects. This is done through agencies & schemes i.e. Enterprise Ireland. Advanced technology has enabled enterprise to grow Culture has changed from conservative to ability to manage risk.