Chapter four is Unit 2 which is part of your ABQ topics It also appears either as a short question or as part of Q4 in the long questions Outcomes On completion of this chapter you should be able to ID: 575333
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Chapter Four - Enterprise
Chapter four is Unit 2, which is part of your ABQ topics. It also appears either as a short question or as part of Q4 in the long questions.OutcomesOn completion of this chapter, you should be able to:1. Define enterprise.2 .Explain the basic enterprise skills.3. Identify the importance of enterprise and enterprise skills in areas such as home, school, local community, Government departments, and business start-up.4. Identify the characteristics of enterprising people.5. Analyse the importance of enterprise in business and the community.6. Identify enterprise skills, opportunities, risks and rewards from given data or scenarios.
Ms. Marshall 5th Year BusinessSlide2
Enterprise
Enterprise involves using your initiative to identify some need and then taking the steps to satisfy that need. It involves taking financial and personal risk. Successful enterprises are rewarded with profit.Examples of Enterprise:Personal Enterprise – Enrolling in a night class.Business Enterprise – Diversification into new markets/new products, e.g. iPad-Apple.Government Enterprise – “The Gathering” initiative to promote tourism.Social Enterprise- Special Olympics.Ms. Marshall 5th Year BusinessSlide3
Enterprise in different areas
AreaEnterpriseBusiness Start UpEntrepreneurSpots an opportunity and takes the initiative to set up a business in order to make a profit. They take financial and personal risk. E.g. Richard Branson set up Virgin Airlines after he flying with another company and feeling that the service wasn’t good enough.HomeGrowing your own vegetables, renovating using your own DIY skills, knitting or sewing instead of buying some clothes and household items.SchoolTY mini-enterprise, after school drama club, study groups.Community (Social Enterprise)Many community enterprises are set up to meet some need rather than to make profit. E.g. Organisations such as the GAA, Tidy Towns and St. Vincent de Paul.
Government
Sometimes the Govt. has to take
the initiative to encourage enterprise or even to set up businesses themselves. E.g. the Gathering should encourage tourism. CEB encourage job creation at a local level. Local councils organise community festivals.
Coillte
was set up by the State to develop forestry.
Ms. Marshall 5th Year BusinessSlide4
Enterprise Skills
Skills are abilities that we have. Some are innate and some have to be learned through practice. 1. Human Relations2. Time Management3. Planning4. Risk management 5. Decision Making6. Reality PerceptionMs. Marshall 5th Year BusinessThis is covered very well in your textbook page 65 to page 71. Make sure you can outline each skill and apply it to the different areas. Slide5
Enterprise skills in Business Start up
SkillEnterpriseHuman RelationsPersuading investors to give you capital in order to set up your business.Time ManagementThe entrepreneur draws up a schedule to ensure the shop is decorated, stocked and ready in time for its opening.PlanningThe entrepreneur does a business plan and cash flow forecast.Risk ManagementThe entrepreneur takes out public liability insurance because members of the public will be on her premises.Decision MakingThe entrepreneur decides to be sole trader/partner/private limited co.Reality Perception
The
entrepreneur drops an idea that she has realised is not working, e.g. stocking an unpopular product, dropping an ineffective ad campaign.
Ms. Marshall 5th Year BusinessSlide6
Enterprise Skills in the Home
SkillHuman RelationsTime ManagementPlanningRisk ManagementDecision MakingReality PerceptionMs. Marshall 5th Year BusinessSlide7
Enterprise skills in School
SkillHuman RelationsTime ManagementPlanningRisk ManagementDecision MakingReality PerceptionMs. Marshall 5th Year BusinessSlide8
Enterprise Skills in the Community
SkillHuman RelationsTime ManagementPlanningRisk ManagementDecision MakingReality PerceptionMs. Marshall 5th Year BusinessSlide9
Enterprise skills in the Government
SkillHuman RelationsTime ManagementPlanningRisk ManagementDecision MakingReality PerceptionMs. Marshall 5th Year BusinessSlide10
Enterprise Characteristics
“Characteristics” refers to personality traits. Some common personality traits amongst entrepreneurs are:Pro-activeIndependentSelf-MotivatedSelf-BeliefNeed for achievement/AmbitiousRisk TakerRuthlessDecisiveCreativeMs. Marshall 5th Year BusinessSee page 65 of your textbook for an outline of those not in boldSlide11
The Importance of Enterprise in Business
Intrapreneurship: is an employee within a business who shows enterprise. He uses his initiative and thinks of a new idea which may cut costs or increase sales and profits. For example, Art Fry inventing the Post it. Why is enterprise important in business?It is essential, it sets the business up in the first place.Intrapreneurs have ideas that can cut costs or increase sales and profits.Enterprise leads to the creation of wealth. Profits and wages earned as a result of enterprise lead to more spending, hence creating more job opportunities. Tax intake to the government increases, leading to more grants to help more businesses.Ms. Marshall 5th Year BusinessSlide12
The Importance of Enterprise in the Community
Creates jobs leading to a higher standard of living in the community.Knock on effect for local businesses, as local people spend more money in their shops, pubs, hotels etc. It creates a new breed of entrepreneurs. People see others who are successful and are inspired by this.The government receives taxes. Less in being paid out on social welfare meaning more is available for local amenities.Infrastructure improves. New houses and roads are built as an area prospers.Ms. Marshall 5th Year BusinessSlide13
Recent Exam Questions
2012/2006 10 marksIllustrate your understanding of the term enterprise.2011 20 marksColm has decided to form a tidy towns committee in his local village and enter the ‘tidiest village’ category of the National Tidy Towns competition in 2013.Discuss four entrepreneurial skills that Colm will require in developing this local community initiative. 2010 ABQ 5 marksExplain the term ‘intrapreneur’Ms. Marshall 5th Year BusinessSlide14
Recent Exam Questions
2009 10 marksIllustrate the difference between enterprise and management.2008/2004 10 marks(a) Intrapreneurship is….(b) State two examples of intrapreneurship.2008 15 marks“Being decisive, creative and being prepared to take risks are personal characteristics often associated with entrepreneurs”. Discuss these characteristics and support your answer with examples. Ms. Marshall 5th Year BusinessSlide15
Recent Exam Questions
2007 15 marksDescribe three enterprise skills required of an entrepreneur. 2006 20 marksUsing examples, analyse the importance of four different enterprising skills and relate two to business and two to the community.NOTE: Chapter 4 has come up in the following ABQ’s: 2010, 2009, 2005 and 2004.Chapter 4 was a full exam question in 2003 (Q4). Ms. Marshall 5th Year Business