Chapter 4-enterprise

Question 1

Enterprise

Answer 1

Enterprise is any attempt to do anything new

Use creativity and initiative to identify a need and take steps to satisfy that need.

Entrepreneurs take a financial and personal risk
But the rewards are available for taking the risk

Question 2

Entrepreneur

Answer 2

Entrepreneur spots a gap in the market, shows initiative, sets up a business to make money.

Financial Risk: If the business fails he can lose all his money he invested in the business.

Personal Risk: If the business fails he may be embarrassed, lose confidence and self esteem.
They take the risk as their is a big potential reward (profit)

Question 3

Enterprise in non-business situations

Answer 3

Home: Parents draw up a rota for doing chores

Community: Community come together to enter tidy towns competition

School: Teacher runs extra curricular activity

Government: Minister for Finance sets up NAMA

Question 4

Characteristics of entrepreneur

Answer 4

Pro-Active: Get an idea and take action to get the idea going.

Independent: Like to be in charge and like working for themselves. Do not like taking orders.

Self motivated: Driven to achieve their goals and do not need others to inspire them.

Confidence: Believe in themselves and their idea.
Need for achievement: Ambitious, burning desire to be successful.

.Risk taker: They take sensible risks that have a good chance to succeed.

7. Ruthless: Put their business ahead of everything else.
8. Creative: Inventive and good at coming up with ideas.
9. Decisive: Able to make good decisions firmly and quickly. They wont miss out on opportunities.

Question 5

Skills of entrepreneurs

Answer 5

Dealing with People: Good with people and can bring the best out in them. Persuade people to help the business.

Time Management: Skill of getting all essential tasks done to achieve the business goals in the time available. List all the tasks and prioritise.

Risk Management: Planned approach to minimising the risks that a business faces. Try stop bad things happening. 1)identify risk 2) Cost to business if risk happens 3)Cost to protect the business, 4) Protect the business if the cost of protection is far less.
Example: Insurance, Proper training, Security measures

4. Decision Making: Make good rational decisions quickly. 1)Analyse the problem 2) List solutions, 3)List advantages and disadvantages of each solution 4)Pick the best solution.
5. Reality Perception: Entrepreneurs see situations as they really are and not what they might like them to be. Need to realise when things are going wrong.
6. Planning: Entrepreneurs set goals for the business to achieve in the future. They also come up with strategies to achieve those goals.

Question 6

Intrapreneur

Answer 6

Intrapreneur is an employee working within a business who shows enterprise.

They show initiative and think of new ideas to help the business

Their ideas may lower costs or increase sales. Both increase profits

XBox was thought of by Microsoft employee

Question 7

Importance of enterprise in business

Answer 7

Provides the idea

Intrapreneurs can have ideas to lower costs/increase sales

Enterprise creates wealth. Profits for entrepreneurs and wages for employees.

Enterprise creates tax revenue for the government.

Question 8

Importance of enterprise in the community

Answer 8

Creates jobs and higher standard of living

Spin off effect to local businesses

Motivates other people to become entrepreneurs

Government taxes can be spent on local services EG schools, roads etc

Improved infrastructure in the area EG Roads, footpaths, houses etc.