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Unit One ­ Staring up a business

Characteristics of successful entrepreneurs

Characteristics of entrepreneurs

An entrepreneur is someone who organises and runs a business.

Characteristics:

Risk Taking
Time and energy
Initiative ­ readiness to come up with ideas, makes decisions and they take action.
Creative skills
Interpersonal and communication skills…

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Leadership styles:

Autocratic The boss takes decisions and criticism is unwelcome
Democratic Persuasive Asks for decisions off staff but tries to convince them to what he thinks
Democratic Consultation Asks for decisions off staff and is looking to do what they think is best
Paternalistic The boss takes decisions and…

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Identifying a business opportunity?

What makes a market ?
What should firms supply?

A market is a place where buyers and sellers meet, in order to exchange goods and services for money.

Price ­ is the amount paid by the buyer in a transaction to the seller for a good…

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price changes


When prices are high
Demand will be low

When prices are low
Demand will be high





Demand and supply curve:
(market price/equilibrium)




Too high (north of market price/equilibrium) = excess in supply
Too low (south of market price/equilibrium) = excess in demand

Market orientation ­ businesses using the…

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the price if the product will be set to what the consumer wants
time consuming (i.e. market research)
distribute the product according to the buying habits and delivery requirements of the consumers.
Product orientation ­ A business approach or philosophy in which whatever a company makes or
suppliers is the…

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Evaluating a business opportunity

Researching Demand for the business idea:

Primary research:

Primary research ­ is data that you collect or if others are commissioned to do the research.

Advantages:

Up to date
Specific to your business

Disadvantage:

Time consuming
Expensive

There are a number of examples of primary research…

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Sales Figures Government publications
Stock movements Internet website pages

Both primary and secondary research is used to quantify demand and gain insight into consumer behaviour,
this means that bot researches can be used to make a numerical estimate of how high demand will be over
your companies product, and to…

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Is there a market for the business idea?

A market ­ is a system that allows buyers and sellers to agree prices and to trade.

Market size:

The size of a market can be estimated or calculated by the total sales of all businesses in the market.
Market size is…

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Positioning the business idea



Market Mapping ­ plotting the position of suppliers/brands against key characteristics of a product.

Market positioning ­ focusing a product and its market on a particular market segment.

Product positioning ­ choosing key characteristics in comparison to the competition, perhaps using market
mapping.

There are many…

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Opportunity cost ­ the value of something that has to be given up.

Examples of stakeholders:
­ customers
employees
suppliers
government
local community
owner
pressure groups

Trade off ­ the process of deciding whether to give up some of one good (or objective) to obtain more of
another.























Economic considerations…

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