What Is an Entrepreneur?

What is an Entrepreneur?

This could be any type of business in any industry. The entrepreneur has to have the idea which they will take forward using their skills and passion for what they do.

Richard Branson, JK Rowling and Mark Zuckerberg are all famous and successful entrepreneurs in various different industries.

Often a person wants to set up their own business to allow them to be their own boss. This can have many benefits.

An entrepreneur’s business will often start as a small local business which may remain that way or it may expand and become amassive global organisation. However, starting a new business is a risk.

Discussion: Discuss with your shoulder partner the benefits of being your own boss and write them on your white board.

Be prepared to share your suggestions with the whole class.

RISK TAKING

An entrepreneur is often considered to be a risk taker because there is no guarantee that when a new business is created that it will be a success.

However, a good entrepreneur calculates the risks involved and does not just assume that they will be successful. They will work hard because they have invested time, effort and money into their business and will strive for it to be as successful as possible.

Discussion: What risks are involved in starting a new business?

Individual Questions – Task 1

1Describe what is meant by the term “entrepreneur”.

2Identify 3 benefits of setting up and running your own business.

3Outline 2 risks involved in setting up your own business.

Extension Activity

In your group, find out the name of the business or product created by the following entrepreneurs:

Bill Gates
Tom Hunter
Alan Sugar
Anita Roddick
Peter Jones
James Dyson
Ben Cohen and Jerry Greenfield
Jamie Oliver
Duncan Bannatyne
Richard Reed, Adam Balon and Jon Wright

SKILLS AND QUALITIES OF ENTREPRENEURS

This graphic identifies some of the qualities which an entrepreneur should have.

Skills needed by Entrepreneurs

Communication / Decision making
Problem solving / Team building
Leadership / Self confidence

Individual Questions – Task 2

Choose 2 qualities and 2 skillsand explain why these would be necessary for an entrepreneur.

Your answer should look like this:

An entrepreneur should be motivated because they would need to work hard to make their business a success.

There are many organisations which can provide help to people who are planning to start up their own business, for example Business Gateway and the Prince’s Trust. The Prince’s Trust was set up to specifically help young people aged between 18-25 who need help getting a job, requiring training or setting up their own business.

These organisations will have business advisors who can provide valuable information on a range of topics such as:

Finance
Employing people
Sales and marketing
Creating a business plan

Discussion: In your group, suggest how you could obtain finance if you were planning to set up your own business.

Individual Questions – Task 3

1Identify an advantage of obtaining a loan from family or friends?

2What is the difference between a bank loan and a grant?

3Identify an advantage and a disadvantage of obtaining finance from an

Investor.

BUSINESS PLANS

In order to reduce the risk of a new business failing, entrepreneurs will prepare a Business Plan to provide information on their business idea. The entrepreneur will write the plan and can be given help with this from the bank or from business advisors. The entrepreneur will show it to potential investors and the bank when asking for finance to set up the business.

It helps the entrepreneur to make sure the business idea will work

This can help to ensure that money loaned to the business will be safe

It proves the product or service being provided has been thought through and that it is likely to be demanded by the public

Helps to check that the product and marketing plans compare with the competition

Helps to ensure they will have enough staff with the correct skills

Individual Questions – Task 4

1Why is it important for an entrepreneur to prepare a business plan?

2Who can provide help with writing the business plan?

3Who will want to see the business plan?

4Give 2 reasons why it is important to prepare a business plan.

Individual Questions – Task 5

Read the following passage and using the information provided, prepare a Business Plan that Frank can take with him when he approaches the bank for a loan.

DRAGONS’ DEN

Your teacher will provide you with a template to prepare Frank’s business plan for him