1. From the specification
a) Characteristics and skills required
b) Reasons why people set up businesses:
financial motives:
profit maximisation
profit satisficing
non-financial motives:
ethical stance
social entrepreneurship
independence
home working

2. Guidance from Edexcel

3. Lesson Objectives
To be able to identify the characteristics and skills required to be an entrepreneur
To be able to discuss financial and non financial motives for starting a business
To be able to answer sample exam questions based on the topic area

4. Definitions from Edexcel
Characteristics
Motivations
an entrepreneurial characteristic is the personal skill or quality or trait
entrepreneurial motive is the purpose/what drives a person

5. Are you creative? Wedgewelly – as worn by celebs!
Watch their original pitch to the Dragons Den here:

6. Are you 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.
Examples of her cakes:

7. Are you 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.

8. Do you have 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.
Watch the wand company present in the den. Here is the website:
Now they have developed a sonic screwdriver for Dr Who fans!

9. Do you have Self confidence?
Levis roots and reggae reggae sauce – watch his self confidence win him some investors…
His website is here:

10. Are you a 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:

11. Motives for starting a business

12. Financial motives for starting a business

13. Article here on Amazon’s profits
profit maximisation
An entrepreneur may aim to make the highest amount of profit possible
This is the difference between revenue and costs, so they will seek to minimise costs and maximise revenue
The advantages to a sole trader are larger wages can be drawn from the profit
The advantages for a ltd company and a plc is dividends will be larger on shares
Share price will increase for a plc and this will attract investors
Article here on Amazon’s profits

14. Taken from A Level paper mark scheme evaluation
profit satisficing
An entrepreneur may aim to make just enough profit to keep the business moving plus another aim at the same time
For example a business may want to make a profit and:
Reward employees with higher wages
Invest in environmental project
Serve the community in some way
Quick cartoon here
Profit satisficing may be a more realistic goal where managers are trying to satisfy diverse range of stakeholders – consumers, workers and shareholders etc. This may be seen in the cases of small haulage & coach operators who aim to survive.
Taken from A Level paper mark scheme evaluation

15. Non-financial motives

16. Want to be their own boss
Advantages:
Can work on own – no one to answer to
Can have own idea and run with it – do not have to follow an old idea
Autonomy
Being the boss, sense of pride and achievement
Task investigate articles on this website

17. ethical stance
Some businesses may decide to trade in a more ethical way
For example:
Environmental trading at their heart e.g. Starbucks
Animal rights e.g. Body Shop
Fair wages for workers in African nations e.g. Fairtrade products
Organic, anti-GM crops
Ethics e.g. Ethical superstore

18. Advantages of working from home
Fit a business round a family, gives a good work-life balance
The owner can work hours that suit their lifestyle
No commute, so reduction in costs of travelling
No expensive premises to pay for, so a reduction in fixed costs
Less stress from travelling and tension with colleagues

19. Disadvantages of working from home
No socialisation with other workers, so business owner may not have anyone to bounce ideas off
Work is all around the business person so they may find it hard to switch off
The business owner may find that they work more hours than a regular job as they don’t keep track of the time that they work
Needs lots of self discipline to avoid distractions
Too easy to be lazy and not work

20. To be more flexible on location or hours
This owner chose her location as it was close to the drop off bus stop for her children after school

21. Social enterprise reasons (it’s not just about £££)
What is social enterprise? Over to you
In teams find out about:
Divine chocolate
Jamie Oliver Fifteen
Big Issue
Cafe Direct
Eden project

22. What is social enterprise?
Social enterprises are businesses trading for social and environmental purposes.
(Learn that bit)
Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social and/or environmental purpose is absolutely central to what they do.
their profits are reinvested to sustain and further their mission for positive change.

23. Jamie Oliver 15 video

24. Benefits of not-for-profit social enterprise
Entrepreneurs can earn a living doing something valuable which can be motivating
The more successful the social enterprise the more society benefits
Customers may be more willing to buy from a social enterprise

25. Where is this? Have you ever been there? Why is it a Social Enterprise?

26. Eden Project – social enterprise
The Eden Project in Cornwall has been built in a disused clay mine, transforming it into a rich, global garden where people can learn about nature and get inspiration about the world around them.
Eden is an educational charity and social enterprise and much of their energy goes into:
Running social and environmental projects in Cornwall and around the world
creating unforgettable learning experiences for students
putting on fantastic arts, theatre and music events
creating stunning gardens as well as doing valuable research into plants and conservation
making sure we run our operations in the greenest possible way.
Article here Eden Project currently making a loss

27. What do you think of the Big Issue?
Have you ever read it?
Did you know it was a social enterprise?
Video

28. Why is it a social enterprise and not a charity?
The Big Issue is a business solution to a social problem, demonstrating that an organisation can succeed whilst being simultaneously driven by commercial aims and social objectives.
It has helped thousands of individuals to regain control of their lives and has simultaneously altered public perceptions of homeless people.

29. Examples of social enterprise
Great case study here to print out about Francesca Barker who rehabilitates those who have come out of prison, in her bakery
Ben and Jerry’s supplier of chocolate brownies for their ice cream – a social enterprise video here and here

30. Revision Video

31. Glossary
profit maximisation; the aim of the business is to make as high profits as is possible in the time frame
profit satisficing; the aim of the business is to make just enough profit to satisfy the owners but with other managers objectives
ethical stance; to trade in a way that is respectful of people, animals, or the environment.
social entrepreneurship; to trade with the goal of helping the community in some way
Independence; to trade in a way which meets the entrepreneur's own goals and allows them to be their own boss
home working; to work from home, for example an eBay business

32. Homework
Finish your worksheet and follow the instructions.