Skills for a Sustainable Business Enterprise. Enterprise Enterprise is a popular word and is used in...
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Transcript of Skills for a Sustainable Business Enterprise. Enterprise Enterprise is a popular word and is used in...
Skills for a Sustainable Business Enterprise
Enterprise
Enterprise is a popular word and is used in a variety of often desirable and positive contexts.
It is often limited to a business context or just meaning ‘a business’.
Others associate with a wider meaning; an attitude to life.
WHAT do YOUthink makes someone anENTREPRENEUR
Definition of entrepreneurship
Entrepreneurs are people:who identify opportunitiesutilise them to their own benefitand broader community’s benefitwithout regard of resources currently controlled.
Principles of Entrepreneurship
Strategic orientation – focus on identifying opportunities not on resources. Influenced by changes in the market, e.g consumer behaviour, social roles that change and political influencesCommitment to opportunity – action orientatedCommitment to resources – do it in multi-stages
Control of resources – not the most important (OPB and OPM)Management structures – stay in direct contactReward philosophy – cannot achieve everything on their own
EntrepreneurialBehaviours
EntrepreneurialAttributes
EntrepreneurialSkills
Opportunity seeking and grasping Achievement of ambition Creative problem solving
Taking initiatives to make things happen
Self confidence and self belief Persuading
Solving problems creatively Perseverance Negotiation
Managing autonomously High internal locus of control Selling
Taking responsibility for and ownership of things
Action orientation Proposing
Seeing things through Preference of learning by doing Holistically Managing business/ projects/situations
Networking effectively Hardworking Strategic thinking
Putting things together creatively Determination Intuitive decision making under uncertainty
Using judgment to take calculated risks
Creativity Networking
Small businesses in the UK….3.7 million small businesses99.8% of all businessesover 50% of economic activity56% of non-governmental jobs (excluding financial services)52% of UK turnover (GDP)
SMEs AND ECONOMY
(BERR, 2008)
In Europe…
Small firms, no matter how they are defined, constitute at least 95% of all firms in the European Community
SMEs AND ECONOMY
(BERR, 2008)
European Commission definition of Smalland Medium sized Enterprises (SMEs):
Micro-enterprises: Less than 10 employeesSmall enterprises: 10 – 99 employeesMedium enterprises: 100 – 499 employees
DEFINITION AND CLASSIFICATION
(BERR, 2008)
How are SMEs different from large businesses?
Dominated and controlled by one personHeavily reliant on a small number of customersSmall market share means they cannot influence their marketMore difficult to raise capital for e.g. expansionTend to restrict/focus their product/service offering, could be vulnerable to changes in market conditions
FACTS ABOUT SMEs
Why do so many SME fail in the early years?
Finance Demand forecastingManagementMarketingBusiness PlanningIdea not viableBad luckPoor timingInadequate training
Small business are not necessarily just smaller versions of business, some may remain small.
For some individuals SME success means growth and high achievement, for others its about lifestyle and adequate income
levels.
SUMMARY
WHAT do YOUthink is an example of anENTREPRENEUR
Exercise
Discuss your entrepreneur and their CHARACTERISITCS, ATTRIBUTES and SKILLS.
Which single individual possesses the most ideal combination of CAS’s and why?
Food for thought
http://www.youtube.com/watch?v=I4FJMJtt8dk