1. Enterprise
BUS1

3. 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.

4. 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

5. 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!

6. 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)

7. 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

8. Why become an
entrepreneur?

9. 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

10. Government support for enterprise
and entrepreneurs
New and more dynamic
A strong entrepreneurial base
businesses increase competitive
is crucial for encouraging
pressures in markets, and
growth and prosperity in a
facilitate the introduction of new
modern economy
ideas and technologies and more
efficient working practices
A successful enterprise culture, This forces existing businesses to
in the form of small and increase their efficiency in order
medium-sized enterprises to stay in the market- any
(SMEs) boosts an economy’s efficiency gains can be passed on
productivity by increasing to consumers through lower
competitive pressure. prices and greater choice!

11. The government has introduced measures to make it easier to start up
and run a business, and to support growing business:
• Reducing business taxes
• Reducing regulations on enterprises
• Reducing barriers to raising finance for small businesses
• Encouraging business start-ups in economically deprived regions
• Introducing legislation to encourage competition
• Funding projects
• Reviewing how to encourage unemployed people into self-
employment

12. Examples
http://www.young-enterprise.org.uk/
Young Enterprise
http://www.bis.gov.uk/policies/enterprise-and-
business-support
Enterprise Directorate
http://www.princes-
trust.org.uk/need_help/enterprise_programme.aspx
Prince’s Trust

13. Questions
Q1. Define the term ‘enterprise’ (2marks)
Q2. Explain why the ability to take risks is important in
developing a successful business (4marks)
Q.3 Suggest three reasons why an individual might want
to become an entrepreneur (3marks)
Q4. Why are an enterprising culture and people with
entrepreneurial skills important for the UK economy?
(5marks)