Business Management Higher Business Enterprise Business in Contemporary

Business Management – Higher Business Enterprise Business in Contemporary Society Role of Enterprise & the Entrepreneur

Combining Factors of Production � The role of the entrepreneur is to combine human, natural and man-made resources in order to produce goods or services.

Identifying Business Opportunities Without enterprise the provision of goods and services will not happen. � The entrepreneur sets things in motion by: � › having and then developing a business idea › ensuring that all the resources necessary are available to put the idea into practice › using his/her own, or borrowed money to finance the cost of acquiring the resources. › being willing to take the risk of losing what has been invested.

Innovation & Risk Taking The entrepreneur will identify an opportunity to provide new goods or services, or to provide existing goods or services cheaper or in a better way. � This could involve identifying a new market for existing products, such as sports clothing for casual wear, as was the case with John Boyle and Sports Division. � Stagecoach, started out by offering very cheap bus journeys from Glasgow to London which proved very popular and profitable. � James Dyson successfully developed an effective solution to the loss of suction in bagged vacuum cleaners and now produces the most popular cleaners in western Europe, Australia and New Zealand. �

Franchising Starting a new business involves a high level of risk. In order to minimise the chances of failure, many budding entrepreneurs use franchising as a means of starting up their own business. � There is a greater chance of success as support and guidance is provided to the franchisee by the franchiser. � For eg Richard Branson, who, despite amassing great wealth through successful business ventures over recent decades, was eager to obtain a franchise to run Virgin Trains on the former British Rail network. It entails the risk of losing £millions should Virgin fail to meet the targets agreed when they took on the franchise. � �