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 YOUthink makes someone anENTREPRENEUR

Definition of entrepreneurship

Entrepreneurs are people:who identify opportunitiesutilise them to their own benefitand broader community’s benefitwithout 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 influencesCommitment to opportunity – action orientatedCommitment to resources – do it in multi-stages

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

EntrepreneurialBehaviours

EntrepreneurialAttributes

EntrepreneurialSkills

Opportunity seeking and grasping Achievement of ambition Creative problem solving

Taking initiatives to make things happen

Self confidence and self belief Persuading

Solving problems creatively Perseverance Negotiation

Managing autonomously High internal locus of control Selling

Taking responsibility for and ownership of things

Action orientation Proposing

Seeing things through Preference of learning by doing Holistically Managing business/ projects/situations

Networking effectively Hardworking Strategic thinking

Putting things together creatively Determination Intuitive decision making under uncertainty

Using judgment to take calculated risks

Creativity Networking

Small businesses in the UK….3.7 million small businesses99.8% of all businessesover 50% of economic activity56% 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 Smalland Medium sized Enterprises (SMEs):

Micro-enterprises: Less than 10 employeesSmall enterprises: 10 – 99 employeesMedium enterprises: 100 – 499 employees

DEFINITION AND CLASSIFICATION

(BERR, 2008)

How are SMEs different from large businesses?

Dominated and controlled by one personHeavily reliant on a small number of customersSmall market share means they cannot influence their marketMore difficult to raise capital for e.g. expansionTend 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 forecastingManagementMarketingBusiness PlanningIdea not viableBad luckPoor timingInadequate 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 YOUthink is an example of anENTREPRENEUR

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

http://www.youtube.com/watch?v=I4FJMJtt8dk