Chapter 4 Enterprise

The human ability to be innovative and willing to do something new and

challenging with the risk of possible failure.

Entrepreneur

A person who has an idea or identifies an opportunity, who uses their
initiative to set up a new business, invests their time and takes a risk in
order to make a return.

Entrepreneurs are Proactive, as they anticipate what the market needs
will be in the future and do something about it. As opposed to being
Reactive and waiting for things to happen.

Intrapreneur

Person who applies enterprise and is enterprising within a business, but
does not take the risk to set up their own business.

Why become an Entrepreneur

Own Boss
Keep the profits
Develop your own business idea
Create employment
Challenge/Satisfaction

Influencing Factors for Entrepreneurs

Growing wealth and confidence in company.
Education; more skills and qualifications
Emigration and travel; more open-minded and new opportunities.
Financial services; banks etc more willing to lend money.
Government: Various grants available

Importance of Enterprise

Entrepreneurship leads to
Increased employment
Greater opportunities for service providers
Greater tax revenues for the Government
Increased wealth in the country which multiplies around the
economy
eg.: profits for entrepreneurs => wages for their employees =>
revenues for the government => This money is spent on goods and
services which becomes the income of others
Greater Standards of Living economically (resulting in foreign
holidays, internet access, better transport) and socially (sponsorship
of clubs)
Business can benefit the local community through sponsorship,
joining local branches of the Chamber of Commerce, the Small
Firms Association, branches of trade unions, etc

Factors of Production

An entrepreneur brings together the four factors of production:
1. Land (Raw Materials - all natural recourses used in
production)
2. Labour (Workers - human effort used to produce goods and
services)
3. Capital (Finance - Buildings, Machinery and infrastructure
which is used to help produce goods and services)
4. Enterprise (Ideas - Takes the initiative and the risks in combining
the other factors of production to produce a good or a
service)

Characteristics and Skills of Entrepreneurs

Characteristics

Special attributes or traits that distinguish one person from another.
Something you are born with. E.g.

Independent
Analytical
Motivates
Ambitious
Confident
Decisive
Hardworking






Skills

Abilities people have gained through practice, knowledge, education and
experience. E.g.

Inner Control
Planning
Setting Goals
Being Realistic
Risk-Taking
Innovative
Decision Making
Human Relations

Enterprise in Ireland

In the past the Irish economy was primary Agricultural.

People who did not work in agriculture were encouraged to take
permanent, pensionable jobs or obtain a trade.
eg.: guards, teachers, nurses, cobblers, mechanics, etc.
Entrepreneurship was unheard of and people working in businesses were
frowned upon.
The State undertook many commercial undertakings such as Aer Lingus,
the E.S.B., Irish Cement, etc.

Economic Expansion

Since Whitakers First Programme for Economic Expansion in the late
1950s and Lemas outward looking economic policies of the sixties,
attitudes toward entrepreneurship and business have been changing in this
country. This was further complemented by Irish membership of the EEC
in 1973.

Todays Irish Economy

Today the food, financial services, food, pharmaceutical and ICT industries
are seen as of kernel importance to the Irish economy. Banks favour
lending to entrepreneurs as they see this an opportunity to earn higher
returns and create wealth in the country and thus for themselves.
eg.: Kerry Group Plc, Ryan Air, Ballygowen, Wind farm owners

Irish willing to become Entrepreneurs

The Irish are more willing to become entrepreneurs because
1. Wealth and confidence in the country
2. The education system is constantly developing, producing young
people with skill and qualifications needed for a modern economy
3. Emigration and travel have opened the minds of Irish people to new
ideas, opportunities and challenges
4. The financial system has become less conservative and is now
prepared to lend to new businesses to help them to get off the ground
5. The government through agencies and schemes helps entrepreneurs
to get their ideas off the ground.

Enterprise in Action

1) Enterprise at Home
Babysitting Service
Lawn Mowing Service
Cooking an unusual meal
Father building a conservatory
1. Mother painting the hall

2) Enterprise in the Community
Credit Union Board of Directors Membership
St. Vincent De Paul Society
ALONE for elderly people living on their own

3) Enterprise in School
School Plays
Organising sports events
Organising Clubs
Arranging school Trips
evening study

4) Enterprise in Leisure Activities
GAA, soccer, rugby clubs,
Further education and personal development

5) Enterprise in ones Personal Life
Making decisions about our futures
Further education and personal Development
Part-time work
Charity/volunteer Work

6) Enterprise in Government
Information Leaflets
Walk in Services
The LCA and LCVP programmes in schools which help with
enterprise education
The Business Expansion Scheme which aims to stimulate Economic
Growth

The Changing Role of an Entrepreneur

New Business Start Up
Entrepreneurs combine all resources together to produce a good or service.
They must spot a gap in a market, under take research, obtain the
necessary finance and produce a business plan to impress investors.

Medium-Sized Business
When the business moves beyond the start-up phase and begins to grow.
The entrepreneur must expand the firms range of new products, develop
new uses for existing products and discover new ways of serving the market
and moving the firm forward.

Large Business
The entrepreneurs job is concerned with expanding the business into new
markets, or perhaps turning the firm into a transnational or global
company.