Chapter Four - Enterprise Chapter four is Unit 2, which is part of your ABQ topics. It also appears...

Ms. Marshall 5th Year Business

Chapter Four - EnterpriseChapter 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

questions.OutcomesOn 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.


EnterpriseEnterprise involves using your initiative to identify

some 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.


Enterprise in different areas

Area Enterprise

Business Start Up

EntrepreneurSpots 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.

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 to develop forestry.


Enterprise SkillsSkills are abilities that we have. Some are

innate and some have to be learned through practice.

1. Human Relations2. Time Management3. Planning4. Risk management 5. Decision Making6. Reality Perception

This is covered very well in your

textbook page 65 to page 71. Make sure you can outline each skill and apply it to the different areas.


Enterprise skills in Business Start upSkill Enterprise

Human Relations

Persuading investors to give you capital in order to set up your business.

Time Management

The entrepreneur draws up a schedule to ensure the shop is decorated, stocked and ready in time for its opening.

Planning The entrepreneur does a business plan and cash flow forecast.

Risk Management

The entrepreneur takes out public liability insurance because 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.


Enterprise Skills in the HomeSkill

Human Relations

Time Management

Planning

Risk Management

Decision Making

Reality Perception


Enterprise skills in SchoolSkill

Human Relations

Time Management

Planning

Risk Management

Decision Making

Reality Perception


Enterprise Skills in the CommunitySkill

Human Relations

Time Management

Planning

Risk Management

Decision Making

Reality Perception


Enterprise skills in the GovernmentSkill

Human Relations

Time Management

Planning

Risk Management

Decision Making

Reality Perception


Enterprise Characteristics“Characteristics” refers to personality traits. Some

common personality traits amongst entrepreneurs are:Pro-activeIndependentSelf-MotivatedSelf-BeliefNeed for achievement/AmbitiousRisk TakerRuthlessDecisiveCreative

See page 65 of your textbook for

an outline of those not in bold


The Importance of Enterprise in BusinessIntrapreneurship: is an employee within a business who

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.


The Importance of Enterprise in the CommunityCreates jobs leading to a higher standard of living

in 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.


Recent Exam Questions2012/2006 10 marksIllustrate your understanding of the term enterprise.2011 20 marksColm 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 marksExplain the term ‘intrapreneur’


Recent Exam Questions2009 10 marksIllustrate the difference between enterprise and

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.


Recent Exam Questions2007 15 marksDescribe three enterprise skills required of an

entrepreneur. 2006 20 marksUsing 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).

Chapter Four - Enterprise Chapter four is Unit 2, which is part of your ABQ topics. It also appears...

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