Enterprise and Entrepreneurship

L1 – What is a business?

Lessons objectives To be able to explain; What a business is What an entrepreneur is What is meant by the dynamic nature of a business The why, how and who about starting business.

Starter In your pairs; Name the following business. What do they sell? Anything else you know about them?

STARTING A BUSINESS ENTERPRISE In this topic you will learn about: Sources of business ideas Looking for a gap in the market Identification of a product or market niche Reasons for starting a business Franchises

An organisation which produces goods and services. WHAT IS A BUSINESS? An organisation which produces goods and services.

Why do businesses exist?

Why do businesses exist? To produce goods To distribute products To provide a service To help others To meet the needs of society

Why do businesses exist? To produce goods To distribute products To provide a service To help others To meet the needs of society To make a profit Not for profit / social enterprises Add an example of each of the above from your local area

Profit? This is a very important business term…. We NEED to know what this means…

Profit PROFIT = TOTAL SALES less TOTAL COSTS

ENTERPRISE

Can you name them?

Can you name them? Bill Gates Alan Sugar P Diddy James Dyson Oprah Winfrey Bill Gates Alan Sugar Richard Branson P Diddy James Dyson Anita Roddick

Write the names of as many Entrepreneurs you can think of What do you think an Entrepreneur is? Mind-maps

What is an entrepreneur? Entrepreneurs are people prepared to take risks, who have the flair and skills needed to set up and run a business or other organisation.

Skills There are many skills which an entrepreneur needs, the three which we need to know about are; Organise resources Takes risk Makes business decisions Explain and write a sentence describing what each of these skills mean. Try and give an example of where you may have used these skills .

Home learning You need to choose and research an entrepreneur. Find out how they started their business and any problems which they had. How have they shown the skills which we have looked at today.

L2/3 Creating business ideas

Say what you see MARGAPKET

Ways of creating new ideas

1- Original ideas “The man who has no imagination has no wings.” Muhammad Ali, greatest ever boxer It is not enough to have an original idea, you need to be able to communicate to others and you need the resources to turn it into a product or service. Well-run businesses encourage staff to share their original ideas. For some businesses, original ideas form the basis of their operation and success. James Dyson interview: https://www.youtube.com/watch?v=PzCU7fiTXEw

Examples of unique ideas

2 - New ideas and competitive advantage Competitive advantage is factors that help a business succeed against its rivals. Ryanair – low-cost and low charges Segway hoverboards – innovative idea but banned for use on roads and pavements Tesla Model 3 – could become the first mass-market all-electric car “The creativity that emerges from the company comes from the many ideas of the people who are here.” John Rollwagen, chief executive

3 -Adapting existing products and services Most new products are an adaptation of an existing product. Adaptation requires less research and development time and money. Existing production machinery can probably be used with some adaption. It is very hard to come up with and develop an entirely new product or service. Adapted products can product the original product.

Activity Look back at the ideas which you created during the apples enterprise activity. For each of the ideas which you created, think about how you created this and which of the three methods of idea creation it fits into. And why?

Examples of successful adaptations Monster Energy Ultra (zero calorie energy drink) launched by Coca-Cola to bring more women into the energy drinks sector. a zero calorie energy drink Giant Crumpets launched by Warburton’s increased their crumpet sales by 13.3 per cent while rival Kingsmill’s crumpet sales fell by 26.3 per cent. Can you think of any others?

Why do we need to create new business ideas? The world we live in changes, se businesses have to change as well.

Changes in what consumers want Consumer tastes changes over time, e.g. skimmed milk instead of full fat milk. The media or social media can affect tastes, e.g. a health scare causing consumers to drink less full fat milk. Household income may go up or down, e.g. incomes going down make consumers switch to cheaper brands, e.g. Asda own milk instead of Cravendale milk.

Becoming obsolete Products and services become obsolete for some of the following reasons: The demand has fallen due to changes in tastes. e.g. less demand for butchers shops as consumers eat less meat Demand falls due to changes in behaviour. e.g. app-based taxi services replacing black cab taxis

Changes in technology As new technology is introduced businesses must create new products to match new consumer wants.