ENTERPRISE New small enterprises are important to the economy. They employ around 60% of the private sector workforce. New enterprises tend to use new technologies to stay ahead of the market.

A PRIVATELY OWNED BUSINESS A privately owned design business would start initially with an idea that could be cultivated into a commercially viable (sellable) product or products. Strategic decisions are made by the owners. This gives them the advantage of flexibility and they are able to exploit the use of new emerging technologies. However they may not have sufficient funds to invest in expensive manufacturing equipment. Large privately owned companies include LEGO, IKEA, Bosch, Rolex, Ferrero, Aldi, Lidl

CROWDFUNDING Crowdfunding is a new way of funding a project by raising small monetary contributions from a large number of people online. It is a very popular way of funding creative projects. The project initiator has the idea Individuals or groups fund the idea The platform that brings the parties together and administers the funds People who support the ideas may receive shares in the company in exchange for money pledged A popular platform for creative projects is www.kickstarter.com On the following slide is a project idea by Tom Lawton. With 14 days still to go he has raised £28,000 in pledges. However he will need £40.000 for the project to go ahead…. 7.9.2017 Did he get the funding?

Did he get the funding? YES!

Another crowdfunding success story

Example kick starter products https://www.amazon.com/Amazon-Launchpad-Kickstarter/b?ie=UTF8&node=13514636011

Benefit to the consumer ………………….? Examination Question: Explain one benefit of crowd funding that can help to promote new and emerging technologies. (2 marks) Benefit to the consumer ………………….? Benefit to the Manufacturer …………………………..? Benefit to the people who have the ideas ………………………………..? Benefit to the people who invest in the product ………………………….?

GOVERNMENT FUNDING FOR NEW BUSINESS START UPS Most new small businesses will qualify for a grant to help establish their business. The Government aim to stimulate the overall economy by doing this. More than 40,000 businesses have had loans. These loans come from various organisations such as the local council, banks etc. Direct Grants – for essential training and equipment or overseas business. Up to 50% of the cost Equity Finance – offer of up to 50% off tax on investments made in new business. Soft loan – Similar to grants but it is a loan with low interest rates and access to business support.

NOT-FOR-PROFIT ORGANISATIONS A non-profit organisation reinvests profits to further achieve its goal, purpose or mission. They do not make profit for directors, members or shareholders. It may be set up as a charitable trust or cooperative society. The organisation Charitywater used new technologies to remotely sense when water flows at projects around the world. Other examples include healthcare apps or online communications to reduce admin costs . Social enterprises are controlled by people who invest in them. They sell goods or services to keep the enterprise going.

HOMEWORK APPLE COMPANY INVESTIGATION Apple make a huge amount of profits for their shareholders. Research any other form of ENTERPRISE they may also be involved with. State which category of enterprise and explain their mission and how they achieve it A PRIVATELY OWNED BUSINESS CROWDFUNDING FUNDING FOR NEW BUSINESS START UPS NOT-FOR-PROFIT ORGANISATIONS Do not cut and paste!!!