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BUSINESS THEME 1 - TOPIC 1.5 - ENTREPRENEURS AND LEADERS - Coggle Diagram
BUSINESS THEME 1 - TOPIC 1.5 - ENTREPRENEURS AND LEADERS
the role and characteristics of entrepreneurs
an
entrepreneur
is someone who starts up and runs their own business
factors necessary when setting up a business
1) come up with an idea
2) do your research
3) plan
4) raise finance
5) decide location
6) organise resources
7) launch
what they do
innovate and invent
take risks
organise resources
make decisions
intrapreneurship
is where employees use their entrepreneurial skills to come up with ideas that financially benefit their employer
intrapreneur characteristics...
can drive innovation/creativity
risk taker
make an impact quickly
team player
problem solver
barrier to entrepreneurship
lack of finance for startups
becoming an employer
legal barriers
lack of ideas
aversion to risk
fear of failure
risk
- upside and downsides weighed up
uncertainty
- businesses cannot predict future events or external shocks
financial motives
profit maximisation (low costs + high revenue
profit satisfying (make enough profit to maintain their interest in business)
non financial motives
ethical stance
work from home
independence
from entrepreneur to leader
entrepreneurs
start from scratch, are in charge of everything and have creative qualities
leaders
are where the business grows (e.g employees, revenue, stores) and now the entrepreneurs have to lead
key factors for running a successful business
managing and enabling others to deliver
being able to trust others
being able to stand back + delegate
listening to criticism
issues when moving from E to L
need for communication
shared ownership
greater responsibility to others
need for motivation/inspiration
importance of strategy
difficulties when moving from E to L
loss of direct control
trust
stress
lack of leadership qualities
adapting the mindset
1.5.3 Business Objectives
Business Objectives are the goals and targets that a business needs to achieve in order to make progress towards a long term aim
Business objectives can clash by stakeholder objectives conflicting
The initial objective for most starting businesses will be
survival
and with time this can change to others such as
profit maximisation
or
business growth
Other objectives include sales maximisation, market share, cost efficiency, employee welfare, customer satisfaction and social objectives
1.5.4 Forms of business
Sole Trader, Partnership, Private Limited Company (Ltd) and Public Limited Company (PLC)
Liability means having responsibility for all the financial debts of the business. Limited Liability means the company is responsible for its debts and none of the owners personal assets can be effected
A franchise involves the granting of a license by one party (franchisor) to another (franchisee) who can then operate and own their own business using the brand, resources and existing business of the franchisor
A social enterprise is a business that aims to fulfil a social/environmental role