Chapter 3 - Enterprise, Business Growth and Size
Learning Objective: To understand what is an entrepreneur and business plans
An important definition...
An entrepreneur is an individual who takes the risk to start their own business based on an idea they have or a product they have created while assuming most of the risks and reaping most of the rewards of the business.
Do you know any entrepreneurs?
There are some characteristics that are common to most entrepreneurs:
They all have an idea for a new business;
They are mostly willing to invest their own personal savings into a new business;
They accept that the risk of failing exist;
In the most part all entrepreneurs are willing to take on the responsibility to make all of the management decisions for their business.
Some more important characteristics of entrepreneurs include:
They are innovative;
Self-motivated and determined;
Self-confident;
They have leadership skills;
They take initiative;
Are results-driven;
Risk-takers;
Good at networking.
How do business ideas come about?
They can be complete new products/services never offered before;
Or existing products/services being offered differently (e.g. more features);
Even launching an existing product/service to a new location counts.
Entrepreneurs count on business plans to assist them:
Business plans are detailed written documents outlining the purpose and aims of a business which is often used to persuade lenders or investors to finance a business proposal.
Business plans also give entrepreneurs a sense of purpose and direction;
They also make it possible for tracking and monitoring progress.
To finish up this session, we need to understand the concept of revenue!
Revenue is nothing more than the amount the business earns from the sale of its products!
Case Study Mama Meals on Wheels (p. 30)
To-Do-List
Explore! p. 28
Chapter 3 - Enterprise, Business Growth and Size
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