Skills for a Sustainable Business Enterprise

Enterprise Enterprise is a popular word and is used in a variety of often desirable and positive contexts. It is often limited to a business context or just meaning ‘a business’. Others associate with a wider meaning; an attitude to life.

WHAT do YOU think makes someone an ENTREPRENEUR

Definition of entrepreneurship Entrepreneurs are people: who identify opportunities utilise them to their own benefit and broader community’s benefit without regard of resources currently controlled.

Principles of Entrepreneurship Strategic orientation – focus on identifying opportunities not on resources. Influenced by changes in the market, e.g consumer behaviour, social roles that change and political influences Commitment to opportunity – action orientated Commitment to resources – do it in multi-stages

Control of resources – not the most important (OPB and OPM) Management structures – stay in direct contact Reward philosophy – cannot achieve everything on their own

Entrepreneurial Behaviours Entrepreneurial Attributes Entrepreneurial Skills Opportunity seeking and graspingAchievement of ambitionCreative problem solving Taking initiatives to make things happen Self confidence and self beliefPersuading Solving problems creativelyPerseveranceNegotiation Managing autonomouslyHigh internal locus of controlSelling Taking responsibility for and ownership of things Action orientationProposing Seeing things throughPreference of learning by doingHolistically Managing business/ projects/situations Networking effectivelyHardworkingStrategic thinking Putting things together creativelyDeterminationIntuitive decision making under uncertainty Using judgment to take calculated risks CreativityNetworking

Small businesses in the UK…. 3.7 million small businesses 99.8% of all businesses over 50% of economic activity 56% of non-governmental jobs (excluding financial services) 52% of UK turnover (GDP) SMEs AND ECONOMY (BERR, 2008)

In Europe… Small firms, no matter how they are defined, constitute at least 95% of all firms in the European Community SMEs AND ECONOMY (BERR, 2008)

European Commission definition of Small and Medium sized Enterprises (SMEs): Micro-enterprises: Less than 10 employees Small enterprises: 10 – 99 employees Medium enterprises: 100 – 499 employees DEFINITION AND CLASSIFICATION (BERR, 2008)

How are SMEs different from large businesses? Dominated and controlled by one person Heavily reliant on a small number of customers Small market share means they cannot influence their market More difficult to raise capital for e.g. expansion Tend to restrict/focus their product/service offering, could be vulnerable to changes in market conditions FACTS ABOUT SMEs

Why do so many SME fail in the early years? Finance Demand forecasting Management Marketing Business Planning Idea not viable Bad luck Poor timing Inadequate training

Small business are not necessarily just smaller versions of business, some may remain small. For some individuals SME success means growth and high achievement, for others its about lifestyle and adequate income levels. SUMMARY

WHAT do YOU think is an example of an ENTREPRENEUR

Exercise Discuss your entrepreneur and their CHARACTERISITCS, ATTRIBUTES and SKILLS. Which single individual possesses the most ideal combination of CAS’s and why?

Food for thought