Section 14

 This section looks at the skills that you will need to help make the start up of a business effective.

 To understand the qualities shown by entrepreneurs (or to start up a business). These include:-  Determination  Initiative  Willingness to take a risk  Decision Making  The ability to plan  The gift of persuasion  Showing leadership  Being Lucky

 Setting up in business is difficult, there is so much to do before it can start trading.  Buying machinery and hiring workers, getting customers and persuading the bank to lend you money.  This takes determination. Determination is linked to commitment.  It is all too easy to give up when it is hard work, long hours and low pay but the determination to stick to the vision of creating your own business is key.

 Entrepreneurs need to be able to take the initiative – that means making the first move. They must spot opportunities early and act to take advantage of them.  Being pro-active, making things happen for them is important. The opposite of being pro-active is re-active – reacting to something is often too late.  Taking the initiative is linked to being a self starter and being able to work independently.

 Entrepreneurs have to be risk takers. Their business may succeed or fail, it is always almost more risky to have your own business than to be employed by someone.  There are different risks when setting up a business, loans may need to be secured on a house and the business may underperform.  These may both lead to a loss, one of a house to pay the loan back and the other of the debts from the business.

 Business Owners have to make decisions. They are in charge.  Being a successful decision maker means being good at making judgements, being good at taking in information and listening to advice.  As the business owner no-one else can overturn your decisions so making the right decision is even more important.

 Entrepreneurs need to be successful planners.  This means two things:- 1. They have clear objectives and know what they want to do. 2. They have a clear ‘map’ of how they want to get there.  Planning is also an important day to day skill, organising your own and your workers time is important. Time management and planning are important aspects of running your own business.

 Entrepreneurs spend time dealing with other people, for eg customers, workers suppliers etc.  Good entrepreneurs are able to persuade other to do what they want them to do.  Customers can be persuaded to buy the business product,  Suppliers can be persuaded to reduce the price or delivery time  The skill of persuasion is linked to ‘having good people skills and creating mutual respect.

 Entrepreneurs are leaders of their own business so they should have good leadership skills.  Successful entrepreneurs have a belief that they will succeed – self confidence. This gives them the confidence to lead their own business.

‘If it wasn’t for bad luck, I would have no luck at all!!’  Businesses need to have some luck to do well, if things are going your way you may have some luck, the economy being good helps, the exchange rate and even peoples moods.  Some people think that luck is helped by perseverance.  Is luck really a trait of an entrepreneur?

 Mindmap the skills needed to make a good entrepreneur?  Are there any others?  Do you think luck is a skill? Or is luck achieved through and a combination of hard work and the other skills?

 Entrepreneurs skills  Entrepreneurs skills Review questions

 Do not think that every business owner has to have every skill needed to be a successful entrepreneur. All entrepreneurs have strengths and weaknesses.  Good entrepreneurs have enough strengths and few enough weaknesses for them to make the best of running a business.  Many of them know their strengths and weaknesses and are prepared to work at their weaknesses to overcome them.