U2 Ch.4 Enterprise Flashcards
Enterprise
when an individual/group take a risk and start something new
entrepreneur
spots gap in the market
comes up with idea they can turn into business
takes financial and personal risk to set up
hope to earn a profit
Why people become entrepreneurs
- Own boss (don’t like orders. make all decisions)
- Varied work day
- Unemployment (out of necessity)
- Money (believe they can earn more with own business than working for others)
Enterprise at home
teenager offers piano lessons to local students for a fee
Enterprise in school
ty students set up business as part of student enterprise awards programme.
Student decides to set up a chess club
enterprise in new business
spots gap for homemade ice cream and sets up shop in busy shopping centre
enterprise in government
Department of Health launched Healthy Ireland programme to improve wellbeing of Irish people
enterprise in community
local people set up Tidy Towns committee to improve apearance of area and make it better to live, work and visit
social enterprise
Definition
[not-for-profit enterprise] for social or environmental aim. Run-like a business but profits are used to benefit cause and not the owner
Entrepreneur Characteristics
- Decision-making
- Risk-taking
- Resilient
- Self-motivation
- Confident
- Creativity
- Flexible
- Future focused
Entrepreneur Skills
- Decision-making
- Proactive
- Networking
- Risk-management
- Human relations
- Realism
Risk-taking
takes personal and financial risks that are calculated and realistic. Invest their time and money in hopes of success
Creative
Show imagination and come up with new ideas or ways to improve things by thinking outside of the box.
Decision-making
make quick and effective decisions which they take full responsibility for. Weigh up the pros and cons of a situation and make a decision that brings the greatest benefit.
Resilient
Not put off by failure and see it as an opportunity to learn. Are able to overcome set-backs.
Entrepreneur Confident
display belief in their idea.
Flexible
adapt to evolving situations and make necessary changes
Future focused
look to the future and come up with plans to meet market needs and stay ahead of competitors
Proactive
Initiate rather than waiting on others to do things. Make changes before they need to be made instead of waiting for problems to arise. They know how to get up and go
Networking
meeting new people that may be useful to a business. Allows business to have a wide range of contacts for support and guidance
Human Relations
build relationship with people and bring out the best in them. Are able to persuade people to help them.
Realism
recognizing when things are going wrong and take action for positive change. See things for what they are and not what they would like them to be
Skills / characteristics that are similar
Networking + Human relations
Resilient + Confident
Flexible + realism
Ideally don’t use two of the same in one question
Intrapreneurship
Employees act like entrepreneurs within business
Come up with new ideas, news ways of solving problems or new processes to increase business profits
Intrapreneurship example
A worker at Google came up with Gmail because of a scheme called Innovation Time Off that encouraged engineers to spend 20% of their week on projects that interest them.
Methods of encouraging Intrapreneurship
- Training (how to come up with ideas)
- Rewards (bonus for good ideas)
- Workplace Culture (encourage employees. okay to make mistakes and think independently without fear of punishment)
- Teamwork (opportunities to work together and develop ideas better as a group)
- Provide Resources (available to pursue ideas)
Benefits of Intrapreneurship
- Increased sales (new products/markets to enter)
- Reduced Costs (more efficient + productive)
- Better morale (employees more fulfilled / better IR)
- Employee empowerment
Benefits of enterprise in community
- Encourages other enterprise
- Wealth creation in local economy
- Creates employment
- Community engagement through sponsorships
Rewards of becoming an entrepreneur
- Control(make all decisions)
- Income (can be more than they would earn if they were employed)
- Challenge (enjoyable)
Risks of becoming an entrepreneur
- Income (may no be very high when first setting up because money needs to be reinvested in business)
- May make Bad decisions
- Long hours
