Developing New Business Ideas
Chapter 1: Characteristics of an Entrepreneur
An entrepreneur is a person who has ideas and makes them happen. This involves setting and running their own business/es. Initially they may work alone, but as income increases they may start to employ workers.
Some personal qualities or characteristics make it more likely that a person will have a successful idea and be able to see it through to completion.
· Characteristics are personal qualities which an entrepreneur possesses.
· Regulations are rules that businesses have to follow. These can be laws made by the parliament or rules written by an organisation which regulates a particular industry. (OFCOM)
· Capital investment is spending on equipment and premises.
· Working capital is the money available to fund the day to day running of the business.
Chapter 2: What Motivates Entrepreneurs?
Profit: is sales revenue less all the costs of production.
-It helps to compensate the entrepreneur for carrying the risks associated with running a business. Money left over from all the sales revenue when costs have been paid.
-Obvious reason for setting up a business makes, the richer the owner will be become.
-There is a visible link between their effort and their financial reward.
Profit= Total Revenue – Total Cost
Motives: are the factors that encourage an entrepreneur to go into business and to take particular decisions.
Non-profit motives: are reasons for setting up the business which are not linked to the making profit.
· Control over working hours or location
· Continuing a family business
· control your own work
· Making money from a hobby
Ethical motives: are reasons linked to doing ‘what is right’. For example, setting up a business or organisation which benefits a section of the community or which is committed to ethical employment and sourcing activities.
Chapter 3: Leadership Styles
- The process of influencing others to work willingly towards an organisation’s goals’.
- Business managers set objectives and must then organise their resources so that they can be achieve.
The leader’s role:
- leaders need to provide themselves with the motivation to work effectively
3 features overlap:
- Task needs
- Group needs
- Individual needs
- Completing the task is obviously important. There are business objectives and practical goals to be met.
- A situation where a creative approach is required, the leader who manages through attention to working relationships within the group may be able to achieve more (relationship orientated leaders).
- Individuals within the group will have their own psychological needs. The leader has to work out whether encouragement is needed and where penalties may be required
Motivation: means using the right strategy to help employees work more effectively. By meeting the needs of the businesses situation and the employees, leaders and…