Key wordsEnterprise: process by which new businesses are formed andnew products are formed and new products and services arecreated and bought to the market. Enterprises are usually leadby entrepreneurs.Enterprise skills: skills that allow an individual or organisation torespond effectively to changing market situations.Entrepreneurs: individuals who have an idea that they developby 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
Bill Gates• 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!
Opportunity CostThe ‘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 toremain in their original jobs rather than pursuing the smoothieventure, the opportunity cost would have been the chance theyhad of developing a highly successful business and the largeamount 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