Entrepreneurship

Objectives Understand the functions of entrepreneurs and innovation within an organisation Develop knowledge of what makes a good entrepreneur using an examples Understand the importance with economy

What do these 3 people have in common? Mel Gibson Snoop Dog Paris Hilton

Scale these entrepreneurs in order of how much you think they are worth. Bill Gates Deborah Meaden Peter Jones Theo Paphitis Stelios Haji-Loannou Oprah Winfrey Richard Branson

Order of wealth Bill Gates £30 b Oprah Winfrey £1.3 b 3. Stelios Haji-Loannou £1.29 b 4. Richard Branson £2,700m 5. Peter Jones £157m 6. Theo Paphitis £135m 7. Deborah Meaden £40m

Characteristics of entrepreneurs Self-confidence Self-determination Being a self-starter Judgement Commitment Perseverance Initiative Risk Taking

Motives for becoming an entrepreneur Financial reward Independence Building a business Job satisfaction The product

Government Support Promotes creation of small business Small businesses are vital for the success of the economy New products and ideas provide essential competitive dynamism in the economy Government set up business link Grants and subsidies offered Princes trust scheme

Risk and opportunity costs Risk of failure is a big motive If the business fails large debts may have to be paid off The opportunity cost of an activity is the benefits lost for the next best alternative High for entrepreneur

Factors of production Are business resources An entrepreneur develops the idea then hires and organises: Land – Not just where the premises are but includes natural resources, both renewable and non-renewable. Labour – The workforce of the business. It is possible to improve the human resources by training. Capital – Sometimes described as the artificial resource because it is made by labour. Includes tools and machinery for examples.

TASK Working with a partner Choose an entrepreneur from the list on the board Research the entrepreneur and find out: A brief description about them What characteristics do they have – innovation, organisation, risk taking, managing ? What has made them successful? Give a 3 minute presentation back to the group about your findings You have 25 minutes!

Question Why are entrepreneurs so important to the success of the UK economy? (8)

Summary Understand the attributes an entrepreneur has and the risk involved Know what support is available to an entrepreneur Have examples of entrepreneurs