1.5.1

• Entrepreneur


  A person who sets up a business and takes risks in the hope of a profit or reward
• Reasons people want to start their own business

  • Lots of reasons
• We call people in this situation an entrepreneur, they are prepared to take some risks in hope of a reward
• What other reasons might there be to start a business?
• Simplified steps to set up a small business

  1. Market research, find out what customers want

  2. Start small at a market stall or similar context if possible

  3. Draw up a business plan

  4. Grow the business
• Why did Claire Hamilton start her own business?
• Setting up an online only business


  • Can be very successful, e.g. Amazon when it first started
  • Sales platform websites like eBay and Etsy mean that entrepreneurs don't even need to have their own website they can sell through a third party
  • Sites like Alibaba can provide suppliers of materials, so the whole business from start to finish can be online
• What would your Etsy shop name be and what would you sell?
• Setting up a business on eBay

  1. Seller lists an item, from antiques to cars, books to sporting goods

  2. Seller chooses to accept only bids for the item (an auction-type listing) or to offer the Buy It Now option, which allows buyers to purchase the item straight away at a fixed price

  3. In an online auction, the bidding opens at a price the seller specifies and remains on eBay for a certain number of days. Buyers then place bids on the item. When the listing ends, the buyer with the highest bid wins
• Can you name 3 alternative sales platforms to eBay?
• Can you explain why ASOS marketplace is an ideal business for a student?
• How much is it to set up a boutique on ASOS marketplace?
• Sole trader


  • To become a sole trader, online or otherwise an entrepreneur will need to register as self-employed for tax
  • If the entrepreneur's business is B2B then the customers may ask to see evidence that they have registered with the UTR (unique taxpayer reference) code
• Day-to-day running of a business

  1. Completing the finances

  2. Buying stock

  3. Listing stock for sale

  4. Contacting customers

  5. Chasing payment
• Ways an entrepreneur can expand their business

  • Open in another location
  • Offer the business as a franchise or business opportunity
  • License the product
  • Diversify
  • Target other markets
  • Merge with or acquire another business
• Intrapreneurship


  An employee within a larger business who thinks like an entrepreneur
• Characteristics of an intrapreneur

  • Takes risks
  • Creative or innovative
  • Solves problems
  • Focuses on processes to improve productivity
  • Drives innovation
  • Understands trends
  • Is self-confident
  • Is proactive in adding value
• Can you now explain to someone else the concept of intrapreneurship?
• Barriers to entrepreneurship

  • Entrepreneurial capacity
  • Access to finance
  • Lack of training / knowhow
  • Fear of failure
  • Lack of confidence
• Entrepreneurial capacity


  The growing awareness that entrepreneurial skills, knowledge and attitudes can be learned and in turn lead to the widespread development of entrepreneurial mind-sets and culture, which benefit individuals and society as a whole
• What does lack of entrepreneurial capacity mean in simple terms?
• Access to finance


  • Many entrepreneurs cannot start their business because of a lack of funding
  • They may not have savings themselves or family that they can ask to help
  • Many banks are not keen to lend to start-ups because of a lack of historical data of sales, making them a very risky investment, despite many government initiatives to make loans cheaper
• Sources of finance used by start-up businesses in UK


  • Monetary financial institutions such as building societies
  • Other
• Commodity


  A raw material or primary agricultural product that can be bought and sold, such as copper or coffee
• What is a commodity?
• Exchange rate


  The value of one currency valued in terms of another
• Key factors that influence exchange rates
• £1 to $ today is____________________
• Interest rate


  • The UK Interest rate is the cost of borrowing to consumers
  • If interest rates go up then consumers are less likely to borrow for cars, houses, furniture, holidays etc.
  • If consumers stop spending and start to save then the economy may start to enter a recession
• What happened 2008/2009?
• Roles of the entrepreneur

  • Intrapreneurship
  • Expanding
  • Running day-to-day
  • Creating and setting-up
  • Anticipating Risk