1. © Inge Hill Start Up, Palgrave 2015

2. Enterprise and Individuals in Society and Economy
CHAPTER 1
Enterprise and Individuals in Society and Economy
© Inge Hill Start Up, Palgrave 2015

3. © Inge Hill Start Up, Palgrave 2015
Purpose of Start Up
So many start-ups fail because…
No or insufficient research carried out
Forecasts for sales too high
Too little time spent on business modelling – finding optimal ways of production and delivery – therefore, costs too high
Too much stock bought too early
Insufficient amount of marketing
A sustainable start-up only closes when the founder(s) want to do so – and is/are not forced to do it.
The Start Up Cube offers a solution to create a sustainable start-up offering principles and doable practices.
© Inge Hill Start Up, Palgrave 2015

4. © Inge Hill Start Up, Palgrave 2015
Learning outcomes
Discuss the roles of business in society
Differentiate features of organisational types in every economy
Identify the principles and practices of sustainable start-ups
Explore the business model cube™
Meet the young entrepreneurs in this book
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5. What is business about? Transformation can include:
INPUT
Buying a ready made good or raw materials
TRANSFORMATION adding value
OUTPUT
Selling the good / service
Transformation can include:
Buying raw materials and turning them into a finished product
Buying parts and assembling them into a final product
Buying ready – made parts and adding colour or photos
importing mobile phone cases and adding customer photos
Service creation
© Inge Hill Start Up, Palgrave 2015

6. Business sizes European Commission, 2006
Less than 10 staff - micro-businesses
or million) in the EU in 2013
10 to 49 staff - small businesses
6.4 % (1.4 million) in 2013 in the EU
50 to 249 staff - medium sized businesses
These three types together account for over 90 % of all businesses in all 28 EU countries.
250 or more staff – large businesses, or corporations
SME – small and medium sized businesses with less than 250 employees
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7. Roles of business in society
Employing staff
Generating profit and income for the owners / shareholders
Paying taxes to the government
Buying and selling goods
Innovate – coming up with new services or products
Contribute to national volume of import and export
Addressing social, economic and environmental problems.
© Inge Hill Start Up, Palgrave 2015

8. Sorting the economy into sectors
Primary sector
agricultural and extracting businesses – farming, mining
Secondary sector
manufacturing products and constructing buildings
Tertiary sector
service sector of lower intensity and complexity - transport, entertainment
Quartenary sector –
service sector of higher intensity and complexity, often information focused – finance, education, real estate
Public sector
Private sector
Third sector
Often called non-profit (misleading label)
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9. Organisational types in every economy
Privately owned businesses
Sole traders or sole propriertors
Companies limited by shares
Publicly owned businesses
State-owned businesses
Non-profits?
Misleading term: they have to make a profit, for example to build reserves.
Charities
Social enterprises
Both IMPORTANT: different investment / use of profits
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Social enterprise?
A social enterprise is an operator in the social economy whose main objective is to have a social impact rather than make a profit for their owners or shareholders. It operates by providing goods and services for the market in an entrepreneurial and innovative fashion and uses its profits primarily to achieve social objectives. It is managed in an open and responsible manner and, in particular, involve employees, consumers and stakeholders affected by its commercial activities. (European Commission, 2011)
Characteristics of non-profit organisations:
The social objective is the reason for commercial activity.
All or a majority of the profits are reinvested to achieve an agreed social objective or mission.
The method of ownership, management and governance reflects their social mission.
© Inge Hill Start Up, Palgrave 2015

11. Myths about successful start-ups
It has to be full-time.
It takes a lot of time and there is not time for leisure.
It needs a lot of money.
You need a great idea.
You have to be young.
You have to know people with influence.
You have to have supportive parents/partners.
Consultancy is not a real / proper business activity.
There are too many others already offering what you want to do.
You have to have formal education.
You have to be creative.
You have to be fully abled.
You should not be a nice person.
It is a lonely process.
© Inge Hill Start Up, Palgrave 2015

12. Additional myths about social enterprise start-ups
It has to be community led.
It has to be a group start-up.
You have to employ disabled staff.
You have to give away things for free.
You cannot make a profit as a social enterprise.
You cannot earn a good salary.
© Inge Hill Start Up, Palgrave 2015

13. © Inge Hill Start Up, Palgrave 2015
The purpose of Start Up
So many start-ups fail because…
No or insufficient research carried out
Forecasts for sales too high
Too little time spent on business modelling – finding optimal ways of production and delivery – therefore, costs too high
Too much stock bought too early
Insufficient amount of marketing
A sustainable start-up only closes when the founder(s) want to do so – and is/are not forced to do it.
The Start Up Cube offers a solution to creating a sustainable start-up offering principles and doable practices.
© Inge Hill Start Up, Palgrave 2015

14. The Business model cube™
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15. Principles (and practices) of the sustainable Start Up
ALERTNESS – Be alert to change and stay light on your feet.
RESPONSIBILITY – You make decisions and are responsible for everything you create.
RESOURCEFUL IMPACT – You manage your resources to have the best possible impact on society and economy.
INTERCONNECTEDNESS – You know you are dependent on others as much as they are on you.
CO-CREATION - You are part of an ongoing value creation dynamic.
SUSTAINABILITY – You make a decision early if the idea you pursue is worth investing more time and money into.
© Inge Hill Start Up, Palgrave 2015

16. Associated practices of the sustainable Start Up
ALERTNESS –
Consult with stakeholders
Research and act on insights
Learn new skills and keep up-to-date
RESPONSIBILITY –
Monitor – POSE
Proactively seek feedback and opportunities
Seek advice and input.
RESOURCEFUL IMPACT –
Manage resources effectively and efficiently.
Forecast your needs and communicate them.
© Inge Hill Start Up, Palgrave 2015

17. Associated practices of the sustainable Start Up
INTERCONNECTEDNESS -
Remain flexible
Demonstrate respect, integrity and professionalism.
CO-CREATION –
Seek opportunities for stakeholders.
Give value as it attracts value.
SUSTAINABILITY –
Decide which idea matches your life and decide early if an idea is worth pursuing.
Be clear on your goals and values.
Research and keep track of information.
© Inge Hill Start Up, Palgrave 2015

18. Meet some of the young entrepreneurs
Alison Barton, UK
Frinter founders Shivam Tandon and Muhammad Ali, UK
Social entrepreneur
Kathryn Kimbley, UK
Ben Smith, UK
Lewis Barnes, UK
Richard Rodman US
Lillie Ranney, US
Alexandru Damian,
Romania
Vivek George,
Hong Kong
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19. © Inge Hill Start Up, Palgrave 2015
Summary
Businesses and social enterprises are essential in all economies.
They provide jobs and innovations.
The create livelihoods for owners / founders.
They pay taxes and contribute to national wealth creation.
The sustainable start up this book promotes is a new venture that only the founders close when they are ready – closure is not forced upon them.
The business model cube ™ is a comprehensive model guiding you in all essential areas for creating a sustainable start-up.
© Inge Hill Start Up, Palgrave 2015