Developing A New Business Idea

HideShow resource information

Developing New Business Ideas

Chapter 1: Characteristics of an Entrepreneur

Entrepreneurial qualities

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.

Entrepreneurial characteristics

·         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

·         Self-fulfilment

·         control your own work

·         Creativity

·         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:

  1. Task needs
  2. Group needs
  3. 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

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Unit 1 Edexcel resources »