Boardworks Ltd 2009 1 of 23 Teachers notes included in the Notes
PageFlash activity Icons key: For more detailed instructions, see
the Getting Started presentation Web addresses Extension activities
Sound Printable activity Spreadsheet Video Enterprise Slide 2
Learning objectives Boardworks Ltd 2009 2 of 23 What is the meaning
of the terms enterprise and entrepreneur? What are the main reasons
for setting up a business? What are the key characteristics
required to become a successful entrepreneur? Why do businesses
fail? Why is enterprise important to the economy and what are the
main sources of government support? Learning objectives Slide 3
Boardworks Ltd 2009 3 of 23 Business brains An entrepreneur is an
individual who sets up a new business and has the skills needed to
make it a success. Their drive to work for themselves is known as
entrepreneurial spirit. Slide 4 Boardworks Ltd 2009 4 of 23
Entrepreneurs and enterprise Entrepreneur is a term we hear often,
but what do entrepreneurs do? What does entrepreneur and enterprise
mean? Why do people set up their own businesses, rather than work
for another firm? Some people set up a business on their own after
being employed by another company, whereas others might start a new
business as soon as they leave school or college. Entrepreneurial
activity is called enterprise; being an entrepreneur is about
having the desire and skills to set up a business. Slide 5
Boardworks Ltd 2009 5 of 23 Non-financial start-up objectives
People may start up businesses for non-financial reasons. to pursue
a hobby or personal interest to have contact with other people to
do something challenging to achieve a social or environmental aim.
These could include: Slide 6 Boardworks Ltd 2009 6 of 23 Benefits
of starting up a business What other benefits are there of owning a
business? Slide 7 Boardworks Ltd 2009 7 of 23 Disadvantages of
starting a business having to acquire all of the skills necessary
to run a business such as book-keeping, knowledge of consumers and
employment law having to take full responsibility for
decision-making Starting up and running a successful business is
not easy, some of the most common problems encountered include:
having to work long hours, perhaps over the weekend, and taking few
holidays having to accept a much lower income, or even none at all,
until the business begins to make a profit. Slide 8 Boardworks Ltd
2009 8 of 23 Make a table to display 3 advantages and 3
disadvantages of starting your own business. Slide 9 Boardworks Ltd
2009 9 of 23 THE DRAGONS DEN Watch video then page 13. What skills
does Levi have? then video 2. Slide 10 Boardworks Ltd 2009 10 of 23
Entrepreneurial skills Slide 11 Boardworks Ltd 2009 11 of 23 Taking
calculated risks Businesses face risks at all times, but the
riskiest stage is usually at start-up. Around one third of all new
businesses fail within the first three years. Why is it impossible
to avoid taking risks when running your own business? Entrepreneurs
have to take decisions that not only risk their own money and
reputations but also those of others, such as other investors and
lenders. Taking a calculated risk involves weighing up the
potential negative consequences of a decision with the rewards that
could occur if the decision is a good one. Slide 12 Boardworks Ltd
2009 12 of 23 BUSINESS IDEAS Slide 13 Boardworks Ltd 2009 13 of 23
The process of creative thinking Creative thinking is a valuable
skill for anyone setting up and running a new business. It involves
looking at an existing situation and assessing its strengths and
weaknesses in order to identify possible new approaches. Think of a
relatively new product, such as the iPhone. Why is it a good
example of creative thinking? This may result in ideas for new
products which satisfy customer needs more effectively.
Entrepreneurs who can think creatively are likely to be more
successful than those who rely on existing methods. Slide 14
Boardworks Ltd 2009 14 of 23 http://www.bbc.co.uk/news/tech
nology-21796888 Slide 15 Boardworks Ltd 2009 15 of 23 Slide 16
Boardworks Ltd 2009 16 of 23 Protecting new ideas New product ideas
need to be protected from competitors if a new business is to be
successful. Trademarks for business or product names, logos and
symbols can also be registered at the Patent Office for exclusive
use. A business that wants to protect its new product designs can
apply for a patent. This can prevent other firms from copying it
for up to twenty years. The main drawback for new businesses is
that the fees charged by the Patent Office can be quite high,
adding to costs. Slide 17 Boardworks Ltd 2009 17 of 23 Why is it
important to be creative? How can we protect our creativity? Slide
18 Boardworks Ltd 2009 18 of 23 Why do new businesses fail? lack of
market research In 2009, around 36,000 companies in the UK were
predicted to fail; many of these would not even survive their first
year of trading. Some common reasons why new businesses fail
include: Can you identify two more possible reasons for business
failure? worsening economic conditions. poor cash flow management
inadequate planning insufficient finance failing to accurately
estimate or control costs Slide 19 Boardworks Ltd 2009 19 of 23 Who
wants to be an A* student? Slide 20 Boardworks Ltd 2009 20 of 23
Glossary
