Enterprise

BUS1

Key words

Enterprise: process by which new businesses are formed and new products are formed and new products and services are created and bought to the market. Enterprises are usually lead by entrepreneurs.

Enterprise skills: skills that allow an individual or organisation to respond effectively to changing market situations.

Entrepreneurs: individuals who have an idea that they develop by setting up a new business and encouraging it to grow.

Characteristics of a successful entrepreneur

• Determination and persistence• Passion• The ability to spot and take advantage of

opportunities• Relevant skills and expertise• Vision, creativity and innovation• Motivation to succeed and not be daunted by failure• Willingness to take risks

• Founder of Microsoft• Dropped out of Harvard University less than

halfway through his IT degree• His drive, imagination, business acumen and

obsession for detail turned Microsoft into one of the worlds most successful companies and him into one of the richest men in the world!

Bill Gates

Dragons Den

http://www.youtube.com/watch?v=kQTzLJCUtjk

http://www.youtube.com/watch?v=Y7OgfCRlFSM

Opportunity Cost

The ‘real cost’ of taking a particular action or the next best alternative.

(the next best thing that you could have chosen but did not)

This is a vital concept in business because there are always alternative decisions that could be

made.

Example: If the founders of Innocent Drinks had decided to remain in their original jobs rather than pursuing the smoothie venture, the opportunity cost would have been the chance they had of developing a highly successful business and the large amount of wealth they subsequently made

Why become and entrepreneur?

Alan Sugar• From a working class family in

London’s East-end• While still at school he made more

money than his father through enterprising projects

• Founded ‘AMSTRAD’ then he was 21. The company began as a general importer/exporter and wholesaler, but soon specialised in consumer electronics

• Former owner and chairman of Tottenham Hotspur football club

• Host of The Apprentice UK• Net worth of £770million