2. Overview for topic 1.5.1 – 1.5.6 1.5.1 Role of an entrepreneur 1.5.2 Entrepreneurial motives and characteristics 1.5.3 Business objectives 1.5.4 Forms of business 1.5.5 Business choices 1.5.6 Moving from entrepreneur to leader

3. Syllabus for 1.5.2 Candidates should be able to: Assess the characteristics and skills required Evaluate reasons why people set up businesses (financial motives: profit maximisation and profit satisficing; non-financial motives: ethical stance, social entrepreneurship, independence and home working)

4. Entrepreneur What is an entrepreneur?

5. What are the characteristics of an entrepreneur? What is the average age in the UK of an entrepreneur?

6. What are the skills of an entrepreneur?

7. What’s the difference between characteristics and skills? Characteristics are Skills

8. What are the main motives of an entrepreneur?

9. Financial motives from syllabus Profit maximisation – making the ______ _______ in a given time period (The Apprentice!). It is usually short term: Long term financial motive tends to be: Profit satisficing – making the

10. Non-financial motives from syllabus

11. Syllabus for 1.5.1 Candidates should be able to: Explain the process of creating and setting up a business and then running and expanding / developing it Assess innovation within a business (intrapreneurship) Analyse the barriers to entrepreneurship Assess the importance of anticipating risk and uncertainty in the business environment

12. Entrepreneurs and innovators An entrepreneur is someone who is willing to take risks, show initiative and set up their own business They are innovators. What does this mean?

13. Creating and setting up a business What are the stages? 1.Generate an idea 2.Small budget research 3.Planning 4.Financing 5.Location 6.Resources 7.Launch

14. Stage 1: sources of business ideas How do entrepreneurs think of ideas?

15. Stage 2: initial research Once an entrepreneur has an idea they need to carry out small budget research - why?

16. Stage 2: example What research would you need to do before setting up a personal trainer? How would you find the information you needed?

17. Stage 2: market research – customers and competitors

18. Stage 2: research starting a business

19. Stages 3 - 5 Stage 3: planning a business: 2.1.4 Stage 4: financing a business: 2.1.1, 2.1.2 Stage 5: locating a business – what will this depend on?

20. Stages 3 - 5: example What planning would you need to do before setting up a personal trainer? What finance would you need? Where would you locate your business?

21. Stages 6 - 7 Stage 6: resources. What will be needed? Stage 7: launch. How will it launch?

22. Stages 6- 7: example What resources would you need to do before setting up a personal trainer? How would you launch?

23. Running a business Running a business is not necessarily as exciting as starting it. Entrepreneurs want repeat customers and so they need: 1.Good organisational skills and concern for customer satisfaction (or delight) 2.The ability to listen to objective advice 3.An obsessive eye for detail 4.To think strategically as well as deal with day-to-day issues

24. Expanding a business What will be needed in order to expand a business successfully?

25. Intrapreneurship Intrapreneurship refers to an entrepreneur within a large firm What type of firm are they in? It requires a leader who sees the value in intrapreneurship e.g.

26. Intrapreneurs Intrapreneurs are employees who use entrepreneurial skills to find and develop initiatives that will benefit their firm financially. Why are they different to entrepreneurs?

27. Benefits of employing intrapreneurs

28. Barriers to entrepreneurship

29. Risk and reward Key rewards – Key risk –

30. Risk and reward Entrepreneurs need to be able to anticipate risks and accurately assess the rewards. They should aim to ________ the risk where possible. Remember opportunity cost too!