Business Studies Revision- Enterprise
Almost any business or organisation can be called an enterprise, but the term usually refers to any process by which new business is formed and new products and services are created and brought to the market. Enterprises are usually led by an entrepreneur Entrepreneur
Individuals who have an idea that they develop by setting up a new business and encouraging it to grow are called entrepreneurs. They take the risk and the subsequent profit that come with success or the losses that come with failure. Characteristic of successful entrepreneurs include:
. Passionate (about their business idea) – This is important motivation and commitment to turn their idea into a successful business . Creative – in order to come up with an idea for a business / new products / services.
. Willing to take responsibility – Entrepreneurs are responsible for organising the resources
. Self-confident – This is important in inspiring confidence in and motivating others, including employees, lenders / investors, suppliers.
. Optimistic – Setting up a business can be tough and not always go according to plan. An optimistic nature will help to ensure an entrepreneur does not give up on the idea they first thought of.
. Willingness to take risks- possibly the most important quality of an entrepreneur, Entrepreneurs often invest their own personal funds in an idea for which there is no guarantee of success.
. Ability to spot and take advantage of opportunities- entrepreneurs should be fast at making decisions and taking advantage of golden opportunities.
The Importance of Risk
The majority of new businesses fail for the following reasons: . Lack of finance
. Skills shortages
. Good idea but poor execution
Calculated risks cannot be avoided in business. Entrepreneurs need to understand where significant risks arise, than asses the probability of the risks happening, this had to be estimated, and then the affects...