1. Entrepreneurial motives

2. Lesson Objectives All students will understand Most students will
The reasons for setting up in business
Most students will
Consider the merits of setting up a social enterprise
Some students will
Link the Factors of Production to a specific example
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3. Task Watch the following video and discuss:
Reasons for starting up in business (Profit and non-profit reasons)
Skills needed to be successful
Benefits of having an ethical stance

4. Adding Value Entrepreneurs have to be good at adding value
Added value represents the difference between the cost of material inputs and the eventual value of the product in terms of the price that can be charged for it
Example – figure 4.1 pg 21

5. Plenary
In pairs: Q1&2 from exam style questions pg 21
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6. Innocent

7. Why start a business? Independence Responsibility of having control
Making their own decisions
Enjoy seeing finished product
Other responsibilities (e.g. childcare)
Profit
Ethics
Personal Objectives (convenient hours, comfort)

8. Profit Motives
To survive
Profit Maximisation
Sales Maximisation

9. Non-Profit Motives Being your own boss Working from home
To help others
Ethical stance
Social entrepreneurship – seeking innovative solutions to difficult social problems

10. Advantages of being Ethical?
Good Publicity
Additional Sales
It helps others!

11. Factors of Production
Enterprise entails bringing together Factors of Production to create desirable goods or services, together they contribute the added value to the product.
Land
The space where production takes place, also includes the natural resources that make up the inputs
Labour
Human effort required in the production
Capital
Premises and equipment used in production
Note - “Enterprise” is sometimes called the 4th Factor of Production as it ties the other three together

12. Plenary Progress Arrow
How do the Leaders at Beauchamps High School employ the Factors of Production?
Ext - Do they use the 4th FoP to help make the organisation successful?
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