as economics and business what motivates entrepreneurs n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
AS Economics and Business What motivates entrepreneurs? PowerPoint Presentation
Download Presentation
AS Economics and Business What motivates entrepreneurs?

Loading in 2 Seconds...

play fullscreen
1 / 29

AS Economics and Business What motivates entrepreneurs? - PowerPoint PPT Presentation


  • 194 Views
  • Uploaded on

AS Economics and Business What motivates entrepreneurs?. Unit 1 By Mrs Hilton for revisionstation. Lesson objectives. To be able to discuss the reasons why people set up their own business or what motivates entrepreneurs To be able to discuss motivational characteristics

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'AS Economics and Business What motivates entrepreneurs?' - whitby


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
as economics and business what motivates entrepreneurs

AS Economics and BusinessWhat motivates entrepreneurs?

Unit 1

By Mrs Hilton for revisionstation

lesson objectives
Lesson objectives
  • To be able to discuss the reasons why people set up their own business or what motivates entrepreneurs
  • To be able to discuss motivational characteristics
  • To be able to answer past papers on entrepreneurial characteristics and entrepreneurial motivations
starter
Starter
  • What do we already know... What reasons might people have for starting their own business?:
how did we do
How did we do?
  • Want to be their own boss
  • Want to earn their own money / profit
  • Want to start a business for a social reason
  • Want to start a business to have something to hand over to their children
  • Wanting to work in a more ethical way
  • Wanting flexibility in hours or location
want to be their own boss
Want to be their own boss
  • Advantages:
  • Can work on own – no one to answer to
  • Can have own idea and run with it – do not have to follow an old idea
  • Autonomy
  • Being the boss, sense of pride and achievement
  • http://www.entrepreneur.com/article/228224
  • Task investigate articles on this website
to be more flexible on location or hours
To be more flexible on location or hours
  • This owner chose her location as it was close to the drop off bus stop for her children after school
trade in a more ethical way
Trade in a more ethical way
  • Daisy green the ethical magazine for women
body shop what motivated anita roddick
Body shop – what motivated Anita Roddick?
  • Task – why did Anita Roddick start the Body Shop?
  • Was it ethics or personal reasons?
  • Anita Roddick website
social enterprise reasons it s not just about
Social enterprise reasons (it’s not just about £££)
  • What is social enterprise? Over to you

In teams find out about:

Divine chocolate

Jamie Oliver Fifteen

Big Issue

Cafe Direct

Eden project

what is social enterprise
What is social enterprise?
  • Social enterprises are businesses trading for social and environmental purposes.
    • (Learn that bit)
  • Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social and/or environmental purpose is absolutely central to what they do.
    • their profits are reinvested to sustain and further their mission for positive change.
benefits of not for profit social enterprise
Benefits of not-for-profit social enterprise
  • Entrepreneurs can earn a living doing something valuable which can be motivating
  • The more successful the social enterprise the more society benefits
  • Customers may be more willing to buy from a social enterprise
how do i know if i am a social enterprise
How do I know if I am a social enterprise?
  • Does your company have social and/or environmental aims?
  • Are at least 50% of your company profits spent on socially beneficial purposes?
  • Does your company earn at least 50% of its income from trading?
  • Can your company demonstrate that social/environmental aims are being achieved?
  • If your company ceased trading, remaining assets would be distributed for social/environmental purposes?
eden project social enterprise
Eden Project – social enterprise
  • The Eden Project in Cornwall has been built in a disused clay mine, transforming it into a rich, global garden where people can learn about nature and get inspiration about the world around them.
  • Eden is an educational charity and social enterprise and much of their energy goes into:
    • Running social and environmental projects in Cornwall and around the world
    • creating unforgettable learning experiences for students
    • putting on fantastic arts, theatre and music events
    • creating stunning gardens as well as doing valuable research into plants and conservation
    • making sure we run our operations in the greenest possible way.
slide18

What do you think of the Big Issue?

Have you ever read it?

Did you know it was a social enterprise?

Video

why is it a social enterprise and not a charity
Why is it a social enterprise and not a charity?
  • The Big Issue is a business solution to a social problem, demonstrating that an organisation can succeed whilst being simultaneously driven by commercial aims and social objectives.
  • It has helped thousands of individuals to regain control of their lives and has simultaneously altered public perceptions of homeless people.
big issue social enterprise
Big Issue – social enterprise
  • The Big Issue Foundation is a registered charity which exists to link vendors with the vital support which will help them address the issues which have led to their homelessness.
  • The organisation currently supports over 2900 homeless and vulnerably housed people across the country. The magazine is read by over 670,000 people every week throughout the UK.
  • The Big Issue exists to offer homeless and vulnerably housed people the opportunity to earn a legitimate income.
  • They produce a weekly entertainment and current affairs magazine which vendors buy from them for £1 and sell to the public for £2, keeping £1 for themselves.
  • They believe in offering ‘a hand up, not a hand out’, but they also recognise that earning an income is the first step on the journey away from homelessness.
definitions from edexcel
Definitions from Edexcel

Characteristics

Motivations

entrepreneurial motive is the purpose/what drives a person

  • an entrepreneurial characteristic is the personal skill or quality or trait
final theory
Final theory

Characteristics

Motivations

To be own boss

For social reasons (to help the community)

To make a profit

To have more control over working life

To turn a hobby into a revenue generator

Increase income

Become independent

Driven by personal passion

To sell something new

  • Resilient
  • Hard-working
  • Determined
  • Creative
  • Self confident
  • Lots of self initiative
  • Risk taker
sample question 1
Sample question 1
  • Using Evidence A, distinguish between entrepreneurial characteristics and entrepreneurial motives. [6 marks]
sample question 2
Sample question 2
  • Sue Russell decided that she would leave her job at Denby Potteries (UK) Ltd in order to set up her own business.
  • Which of the following is the most likely explanation for Sue’s decision to set up her own business?
  • A To develop a niche market
  • B To reduce risk-taking
  • C For non-ethical reasons
  • D To work independently [4]
sample question 3
Sample question 3

In his attempts to persuade the Women’s Business Development Agency to provide a

grant to help finance the Leisure Library, Mike Watson argued that the business would be run as a not-for-profit social enterprise.

Discuss the extent to which the motivational objectives of Mike Watson might differ from those of a typical private sector entrepreneur.

[8]

answer to question 1
Answer to question 1

Knowledge and understanding: up to 2 marks are

available for defining each aspect, e.g. an entrepreneurial characteristic is the personal skill or quality or trait (1); entrepreneurial motive is the purpose/what drives a person (1)

Knowledge and understanding: up to 2 marks are

available for simply using a specification/textbook example, e.g. creativity, hardworking, resilient, initiative, self-confident OR risk taker (1); his motive was to increase his income, gain independence OR he was driven by a personal passion (1)

Application: up to 2 marks are available for relating the

above to Case Study

6 marks in total to award

answer to question 2
Answer to question 2
  • Answer is option D – to work independently
  • Defines niche market or non-ethical (1 mark)
  • Risk taking is naturally increased because she will be running her own business (1 mark) and no longer have the security of employment (1 mark)
  • Denby Potteries Ltd is a private sector business (1 mark) and so is unlikely to be too concerned with social and environmental benefits (1 mark)
  • Denby may already provide products for a niche market (1 mark) but Sue could not be in a position to actually develop the market (1 mark)
  • This decision might enable Sue to earn more money (1 mark) that she received as a salary when employed (1 mark)
  • Other reasons for selling in business, e.g. something new, make more money (1 mark)