enterprise & entrepreneurship what is an entrepreneur?

Enterprise & Entrepreneurship

What is an Entrepreneur?

What is an entrepreneur?

• All entrepreneurs are risk takers• Entrepreneurs are born not made• Entrepreneurship is about making a

fortune• Entrepreneurship only takes place in

a business context• Entrepreneurship is all about the

individual• Entrepreneurship cannot be taught

What is an Entrepreneur?

• A person who organises, operates & assumes the risk for a business venture

Sir Alan Sugar – founder of Amstrad and star of ‘The Apprentice’

“I started out of the back of a van. It’s not a fairy story, it’s true. I literally bought stuff and went out selling to dealers. As time went by I needed a warehouse and needed employees and relied upon those employees. As it grew I needed an accountant and relied upon him, then I needed an engineer… “

Richard Reed - Innocent

Drinks The Innocent ethos – penned

by Reed, Wright, Balon and 45 staff in 2003, and now further developed and driven by Reed’s ‘Sustainability Squad’ – is built around indelible principles: procuring ethically, reducing and offsetting carbon emissions, recycling and putting something back through charitable giving.

Anita Roddick – The Bodyshop

“I started The Body Shop in 1976 simply to create a livelihood for myself and my two daughters, while my husband, Gordon, was trekking across the Americas. I had no training or experience and my only business acumen was Gordon’s advice to take sales of £300 a week. Nobody talks of entrepreneurship as survival, but that's exactly what it is and what nurtures creative thinking. Running that first shop taught me business is not financial science, it’s about trading: buying and selling. It’s about creating a product or service so good that people will pay for it.”

Social Entrepreneurs

- A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change.

- People with vision, drive, commitment and passion who want to change the world for the better.

Graduate Entrepreneurs

• Altru Drama Ltd -Theatre in Education – Altru Drama is a theatre company with a difference. 

Kate Gorst, BA (Hons) Literature, Life and Thought, PGCE graduate (Liverpool JMU) and Director of Altru Drama describes how theatre in education can help individuals to achieve their potential, “We strongly believe in the power of drama to promote social development for all people at all levels.”

– Altru create and deliver theatre performances, theatre in education and creative drama workshops, providing opportunities for learning, innovation, fun and imagination.  They have worked with many schools across the region as well as youth and health services and primary care trusts (PCTs). 

Graduate Entrepreneurs

• Tobias Hardy is a Business Studies graduate of Liverpool JMU and the brains behind textandsell®.  – Managing Director Tobi’s business idea came

from helping a friend pack up to go to Australia, when he identified an alternative method of selling goods quickly and cheaply using mobile phone images uploaded to a website.  textandsell® utilises the latest Internet and mobile technology to make online classified advertising easier, quicker, cheaper and more secure.

– “I always wanted to be my own boss and became involved in the enterprise side of the University”

What triggers people to start a business?

Freedom of being your own boss

30%

The challenge of running a business

22%

Potential to earn more money

23%

Lack of employment

10%

Family tradition8%

Establishing a buisness for your

family4%

None of these3%

Influences on the Start-up Process

Influences on the Start-up Process

Economic conditions

Availability of finance

Availability of personnel

Access to customers

Business support facilities

Nature of skills

Contacts and networks

Exp. In small business setting

Motivation to stay or leave

The start upGenetic factors

Family

Education

Previous career

Routes into Business

• New business start-up• Purchase business• Acquire Franchise• Family Business

Routes into Business: Comparison

Independence

Uncertainty/Learning Task

Cost

Pure Start-Up

Purchase of Business

FranchiseEnter Family Business

Tests of an Entrepreneurial Opportunity

Does the opportunity match the founder’s experience, skills and interests?

Can they recruit and lead the team needed to exploit the opportunity?

Do the resource needs reduce the chance of success?

Is the timing of the opportunity right? Is the opportunity a scaleable and saleable

business? Are the potential margins good? Is it an opportunity or simply an idea?

Economic Value of Entrepreneurs

• The UK is ranked 3rd in the G8 (8 of the worlds leading industrialised nations) for early stage entrepreneurship.

• The World Bank ranks us in the global top ten in terms of ease of doing business.

• In the last 10 years the number of businesses operating in the UK has increased by nearly ¾ of a million.

Economic Value of Entrepreneurs

• Increases diversity• Stimulates more competition leading

to superior economic performance• Creates more jobs – particularly long

term• Has motivational effects within the

labour market