Characteristics of Entrepreneurs Unit 1 AS Business and Economics By Mrs Hilton for revisionstation Lesson Objectives • To be able to discuss a range of characteristics that individuals that start their own business may need to possess. These may be; skills, qualities or personality traits. • To be able to answer a past paper question based on the theory Starter • Do you have the right skills to start a business? • Who wants to start their own business? Definition of entrepreneur • 4 Factors of production: • Land – Can mean actual land or natural resources • Labour – The employees or workers • Capital – Finance invested in the business also means tools and equipment • Enterprise – Role of the entrepreneur is to bring together the other 3 to make a profit Creativity • Wedgewelly – as worn by celebs! • http://www.wedge welly.co.uk/ • Watch their original pitch to the Dragons Den here: • http://www.bbc.co. uk/dragonsden/entr epreneurs/lauraboo th.shtml hardworking • Entrepreneurs may have to put many hours in at the start of a business. Nicki Bromfield started Cake Hole in a village in Tutbury. She is in her 3rd year at the shop and works on her own. She is currently working 120 hours a week to make a go of the business. http://www.cakeholetutbury.co.uk/ Examples of her cakes: http://www.cakeholetutbury.co.uk/c akes/celebration-cakes/ Resilient • Resilient: strong, hardy, tough, robust, durable, feisty, quick to recover. An entrepreneur may get many knock backs before their business is a success. • Karen Jonga started her own dressmaking business in Derby. At the start many people told her that it would not be a success. She had many problems along the way – but by having resilience she has been able to keep the business going. “If you get knocked down you get up again.” • Karen Tino Jonga 24, is a UK Fashion Designer/Dressmaker with a unique & timeless approach to creating women’s wear. http://www.karentino. co.uk/#/studiogallery/4573036111 Initiative • Initiative: inventiveness, enterprise, ingenuity, resourcefulness. Many entrepreneurs may start a business because they have a good idea and want to take it to market. • http://www.bbc.co.uk/dragon sden/entrepreneurs/richardbla kesley.shtml • Watch the wand company present in the den. Here is the website: http://www.thewandcomp any.com/sonic/ Now they have developed a sonic screwdriver for Dr Who fans! Self confidence • Levis roots and reggae reggae sauce – watch his self confidence win him some investors… • http://www.bbc.co.uk/drag onsden/entrepreneurs/levir oots.shtml • His website is here: • http://www.leviroots.com/ Risk taker • Risk; danger, jeopardy, peril, hazard, menace, threat. Many entrepreneurs stake everything on their idea and may lose personal possessions in their quest to start their own business. • Kirsty Henshaw a single mum had everything to lose with her dairy free ice cream: • http://www.bbc.co.uk/dragonsde n/entrepreneurs/kirstyhenshaw.s html Sample question 1 The late Anita Roddick, the founder of The Body Shop, showed the typical characteristics of a successful entrepreneur. Which one of the following is a least likely characteristic of a successful entrepreneur? A Risk averse B Flexibility/adaptability C Self-confidence D Resilience Answer question 1 Correct answer was A Definition of either entrepreneur e.g. entrepreneurs are a factor of production which combine the others (1) OR risk averse e.g. when a person refuses to take risks / plays safe (1) - Flexibility is needed to try new ideas / work varied hours (1) - Resilience is when an entrepreneur doesn’t give up easily (1) - Anita Roddick clearly had self-confidence given her ability to sell and market her products (1) - She also took risks to develop her unique range of cosmetics (1) Any acceptable answer which shows selective knowledge/application and/or development. Sample question 2 • Evidence A states ‘Maria’s business thrives because of her natural entrepreneurial characteristics and motivation’ (lines 23 to 24). • Using the case study, explain the difference between entrepreneurial characteristics and entrepreneurial motives.  From section B Answer question 2 Knowledge (4), Application (2) Knowledge: up to 2 marks are available for defining each aspect e.g. characteristics are personal skills/qualities; motives e.g. what drives or inspires a person Knowledge: up to 2 marks are available for giving an example for each aspect, e.g. resilient (characteristics) and ethical reasons (motives) Application: up to 2 marks are available for relating the above to Maria, e.g. she is hard working and has utmost respect for the environment Sample question 3 (a) Ruth Badger, star of the BBC series ‘The Apprentice’, has argued that the most important characteristic of a successful entrepreneur is ‘having the right attitude’. Which of the following is least likely to be a characteristic of a successful entrepreneur? A Resilience B Creativity C Cautiousness D Hard working Answer question 3 Correct answer is cautiousness (C) • Cautiousness is the opposite to risk-taking (1 mark knowledge/understanding), cautiousness may therefore not be profitable (1 mark analysis) and risk–taking is fundamentally what enterprise is all about (1 mark evaluation). • Resilience means not giving up (1 mark knowledge) which is crucial for a successful entrepreneur (1 mark evaluation) because often new businesses fail (1 mark analysis). • Cautiousness suggest taking care in decision-making (1 mark knowledge), which might be appropriate with respect to maintain a new business’s cash flow (1 mark analysis) but few entrepreneurs survive by prudence alone as they should take risks (1 mark evaluation).