Characteristics of Entrepreneurs Unit 1 AS Business and Economics By Mrs Hilton for revisionstation

Lesson Objectives To be able to discuss a range of characteristics that individuals that start their own business may need to possess. These may be; skills, qualities or personality traits. To be able to answer a past paper question based on the theory

Starter Do you have the right skills to start a business? Who wants to start their own business?

Definition of entrepreneur 4 Factors of production: Land Can mean actual land or natural resources Labour The employees or workers Capital Finance invested in the business also means tools and equipment Enterprise Role of the entrepreneur is to bring together the other 3 to make a profit

Creativity Wedgewelly – as worn by celebs! http://www.wedgewelly.co.uk/ Watch their original pitch to the Dragons Den here: http://www.bbc.co.uk/dragonsden/entrepreneurs/laurabooth.shtml

hardworking Entrepreneurs may have to put many hours in at the start of a business. Nicki Bromfield started Cake Hole in a village in Tutbury. She is in her 3rd year at the shop and works on her own. She is currently working 120 hours a week to make a go of the business. http://www.cakeholetutbury.co.uk/ Examples of her cakes: http://www.cakeholetutbury.co.uk/cakes/celebration-cakes/

Resilient Resilient: strong, hardy, tough, robust, durable, feisty, quick to recover. An entrepreneur may get many knock backs before their business is a success. Karen Jonga started her own dressmaking business in Derby. At the start many people told her that it would not be a success. She had many problems along the way – but by having resilience she has been able to keep the business going. “If you get knocked down you get up again.” Karen Tino Jonga 24, is a UK Fashion Designer/Dressmaker with a unique & timeless approach to creating women’s wear. http://www.karentino.co.uk/#/studio-gallery/4573036111

Initiative Initiative: inventiveness, enterprise, ingenuity, resourcefulness. Many entrepreneurs may start a business because they have a good idea and want to take it to market. http://www.bbc.co.uk/dragonsden/entrepreneurs/richardblakesley.shtml Watch the wand company present in the den. Here is the website: http://www.thewandcompany.com/sonic/ Now they have developed a sonic screwdriver for Dr Who fans!

Self confidence Levis roots and reggae reggae sauce – watch his self confidence win him some investors… http://www.bbc.co.uk/dragonsden/entrepreneurs/leviroots.shtml His website is here: http://www.leviroots.com/

Risk taker Risk; danger, jeopardy, peril, hazard, menace, threat. Many entrepreneurs stake everything on their idea and may lose personal possessions in their quest to start their own business. Kirsty Henshaw a single mum had everything to lose with her dairy free ice cream: http://www.bbc.co.uk/dragonsden/entrepreneurs/kirstyhenshaw.shtml

Sample question 1 The late Anita Roddick, the founder of The Body Shop, showed the typical characteristics of a successful entrepreneur. Which one of the following is a least likely characteristic of a successful entrepreneur? A Risk averse B Flexibility/adaptability C Self-confidence D Resilience

Answer question 1 Correct answer was A Definition of either entrepreneur e.g. entrepreneurs are a factor of production which combine the others (1) OR risk averse e.g. when a person refuses to take risks / plays safe (1) - Flexibility is needed to try new ideas / work varied hours (1) - Resilience is when an entrepreneur doesn’t give up easily (1) - Anita Roddick clearly had self-confidence given her ability to sell and market her products (1) - She also took risks to develop her unique range of cosmetics (1) Any acceptable answer which shows selective knowledge/application and/or development.

Sample question 2 Evidence A states ‘Maria’s business thrives because of her natural entrepreneurial characteristics and motivation’ (lines 23 to 24). Using the case study, explain the difference between entrepreneurial characteristics and entrepreneurial motives. [6] From section B

Answer question 2 Knowledge (4), Application (2) Knowledge: up to 2 marks are available for defining each aspect e.g. characteristics are personal skills/qualities; motives e.g. what drives or inspires a person Knowledge: up to 2 marks are available for giving an example for each aspect, e.g. resilient (characteristics) and ethical reasons (motives) Application: up to 2 marks are available for relating the above to Maria, e.g. she is hard working and has utmost respect for the environment

Sample question 3 (a) Ruth Badger, star of the BBC series ‘The Apprentice’, has argued that the most important characteristic of a successful entrepreneur is ‘having the right attitude’. Which of the following is least likely to be a characteristic of a successful entrepreneur? A Resilience B Creativity C Cautiousness D Hard working

Answer question 3 Correct answer is cautiousness (C) • Cautiousness is the opposite to risk-taking (1 mark knowledge/understanding), cautiousness may therefore not be profitable (1 mark analysis) and risk–taking is fundamentally what enterprise is all about (1 mark evaluation). • Resilience means not giving up (1 mark knowledge) which is crucial for a successful entrepreneur (1 mark evaluation) because often new businesses fail (1 mark analysis). • Cautiousness suggest taking care in decision-making (1 mark knowledge), which might be appropriate with respect to maintain a new business’s cash flow (1 mark analysis) but few entrepreneurs survive by prudence alone as they should take risks (1 mark evaluation).