Chapter Four - Enterprise

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Chapter Four - Enterprise
 Chapter four is Unit 2, which is part of your ABQ topics.
 It also appears either as a short question or as part of Q4 in the long
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questions.
Outcomes
On completion of this chapter, you should be able to:
1. Define enterprise.
2 .Explain the basic enterprise skills.
3. Identify the importance of enterprise and enterprise skills in areas
such as home, school, local community, Government
departments, and business start-up.
4. Identify the characteristics of enterprising people.
5. Analyse the importance of enterprise in business and the
community.
6. Identify enterprise skills, opportunities, risks and rewards from
given data or scenarios.
Ms. Marshall 5th Year Business
Enterprise
 Enterprise involves using your initiative to identify some
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need and then taking the steps to satisfy that need. It
involves taking financial and personal risk.
Successful enterprises are rewarded with profit.
Examples of Enterprise:
Personal Enterprise – Enrolling in a night class.
Business Enterprise – Diversification into new
markets/new products, e.g. iPad-Apple.
Government Enterprise – “The Gathering” initiative to
promote tourism.
Social Enterprise- Special Olympics.
Ms. Marshall 5th Year Business
Area
Enterprise
Business Start Up Entrepreneur
Spots an opportunity and takes the initiative to set up a business in
order to make a profit. They take financial and personal risk. E.g.
Richard Branson set up Virgin Airlines after he flying with another
company and feeling that the service wasn’t good enough.
Enterprise in different areas
Home
Growing your own vegetables, renovating using your own DIY skills,
knitting or sewing instead of buying some clothes and household
items.
School
TY mini-enterprise, after school drama club, study groups.
Community
(Social
Enterprise)
Many community enterprises are set up to meet some need rather
than to make profit. E.g. Organisations such as the GAA, Tidy Towns
and St. Vincent de Paul.
Government
Sometimes the Govt. has to take the initiative to encourage enterprise
or even to set up businesses themselves. E.g. the Gathering should
encourage tourism. CEB encourage job creation at a local level. Local
councils organise community festivals. Coillte was set up by the State
Ms. Marshall
5th Year Business
to develop
forestry.
Enterprise Skills
 Skills are abilities that we have. Some are innate and
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some have to be learned through practice.
1. Human Relations
2. Time Management
This is covered very well
in your textbook page 65
3. Planning
to page 71. Make sure
you can outline each
4. Risk management
skill and apply it to the
5. Decision Making
different areas.
6. Reality Perception
Ms. Marshall 5th Year Business
Enterprise skills in Business Start
up
Skill
Enterprise
Human
Relations
Persuading investors to give you capital in order to set up your
business.
Time
The entrepreneur draws up a schedule to ensure the shop is
Management decorated, stocked and ready in time for its opening.
Planning
The entrepreneur does a business plan and cash flow forecast.
Risk
The entrepreneur takes out public liability insurance because
Management members of the public will be on her premises.
Decision
Making
The entrepreneur decides to be sole trader/partner/private limited
co.
Reality
Perception
The entrepreneur drops an idea that she has realised is not working,
e.g. stocking an unpopular product, dropping an ineffective ad
campaign.
Ms. Marshall 5th Year Business
Enterprise Skills in the Home
Skill
Human Relations
Time Management
Planning
Risk Management
Decision Making
Reality Perception
Ms. Marshall 5th Year Business
Enterprise skills in School
Skill
Human Relations
Time Management
Planning
Risk Management
Decision Making
Reality Perception
Ms. Marshall 5th Year Business
Enterprise Skills in the Community
Skill
Human Relations
Time Management
Planning
Risk Management
Decision Making
Reality Perception
Ms. Marshall 5th Year Business
Enterprise skills in the Government
Skill
Human Relations
Time Management
Planning
Risk Management
Decision Making
Reality Perception
Ms. Marshall 5th Year Business
Enterprise Characteristics
 “Characteristics” refers to personality traits. Some common
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personality traits amongst entrepreneurs are:
Pro-active
Independent
See page 65 of your
Self-Motivated
textbook for an
Self-Belief
outline of those not
in bold
Need for achievement/Ambitious
Risk Taker
Ruthless
Decisive
Creative
Ms. Marshall 5th Year Business
The Importance of Enterprise in
Business
 Intrapreneurship: is an employee within a business who
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shows enterprise. He uses his initiative and thinks of a new
idea which may cut costs or increase sales and profits.
For example, Art Fry inventing the Post it.
Why is enterprise important in business?
It is essential, it sets the business up in the first place.
Intrapreneurs have ideas that can cut costs or increase sales
and profits.
Enterprise leads to the creation of wealth. Profits and
wages earned as a result of enterprise lead to more
spending, hence creating more job opportunities.
Tax intake to the government increases, leading to more
grants to help more businesses.
Ms. Marshall 5th Year Business
The Importance of Enterprise in
the Community
 Creates jobs leading to a higher standard of living in
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the community.
Knock on effect for local businesses, as local people
spend more money in their shops, pubs, hotels etc.
It creates a new breed of entrepreneurs. People see
others who are successful and are inspired by this.
The government receives taxes. Less in being paid out
on social welfare meaning more is available for local
amenities.
Infrastructure improves. New houses and roads are
built as an area prospers.
Ms. Marshall 5th Year Business
Recent Exam Questions
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2012/2006 10 marks
Illustrate your understanding of the term enterprise.
2011 20 marks
Colm has decided to form a tidy towns committee in his
local village and enter the ‘tidiest village’ category of
the National Tidy Towns competition in 2013.
 Discuss four entrepreneurial skills that Colm will
require in developing this local community initiative.
 2010 ABQ 5 marks
 Explain the term ‘intrapreneur’
Ms. Marshall 5th Year Business
Recent Exam Questions
 2009 10 marks
 Illustrate the difference between enterprise and
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management.
2008/2004 10 marks
(a) Intrapreneurship is….
(b) State two examples of intrapreneurship.
2008 15 marks
“Being decisive, creative and being prepared to take risks
are personal characteristics often associated with
entrepreneurs”. Discuss these characteristics and support
your answer with examples.
Ms. Marshall 5th Year Business
Recent Exam Questions
 2007 15 marks
 Describe three enterprise skills required of an
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entrepreneur.
2006 20 marks
Using examples, analyse the importance of four
different enterprising skills and relate two to business
and two to the community.
NOTE: Chapter 4 has come up in the following ABQ’s:
2010, 2009, 2005 and 2004.
Chapter 4 was a full exam question in 2003 (Q4).
Ms. Marshall 5th Year Business

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