N4 BUSINESS IN ACTION/N5 UNN4 BUSINESS IN ACTION/N5 UNDERSTANDING BUSINESSDERSTANDING BUSINESS

HOW DO SMALL HOW DO SMALL BUSINESSES OPERATEBUSINESSES OPERATE

Business ResourcesBusiness Resources

LEARNING INTENTIONS AND LEARNING INTENTIONS AND SUCCESS CRITERIASUCCESS CRITERIA

Learning Intentions:Learning Intentions:

I understand the I understand the

resources needed resources needed toto

establish a establish a businessbusiness

Success Criteria:Success Criteria:

• I can name and I can name and describe the 4 describe the 4 Factors of Factors of ProductionProduction

• I can explain the I can explain the skills and skills and attributes of an attributes of an entrepreneurentrepreneur..

FACTORS OF PRODUCTIONFACTORS OF PRODUCTION

In order to make a good or provide aIn order to make a good or provide a

service a number of ingredients/resourcesservice a number of ingredients/resources

are required:are required:

Land, Labour, Capital and EnterpriseLand, Labour, Capital and Enterprise

These are also referred to as the FACTORSThese are also referred to as the FACTORS

OF PRODUCTION. You can remember theseOF PRODUCTION. You can remember these

with the pneumonic with the pneumonic CELLCELL..

LANDLAND

Land means the natural resources Land means the natural resources thatthat

businesses use –businesses use –

Plot of land, coal, forests, water, Plot of land, coal, forests, water, wood, wood,

fields, rivers fields, rivers

LABOURLABOUR

Labour means the workforce of aLabour means the workforce of a

business and includes –business and includes –

Joiners, shop assistants, teachers,Joiners, shop assistants, teachers,

Admin staff, electricians, cleaners,Admin staff, electricians, cleaners,

managers, etcmanagers, etc

CAPITALCAPITAL

Capital means the money invested in theCapital means the money invested in the

business and what this can buy in the business and what this can buy in the way ofway of

man-made resources –man-made resources –

tools, machinery and equipment that atools, machinery and equipment that a

business owns eg tractors, Lorries, motorbusiness owns eg tractors, Lorries, motor

vehicles, buildings, factories, etcvehicles, buildings, factories, etc

ENTERPRISEENTERPRISE

Enterprise means the business ideas that anEnterprise means the business ideas that an

ENTREPRENEUR or owner has on how to use land, ENTREPRENEUR or owner has on how to use land,

labour and capital in his or her business to makelabour and capital in his or her business to make

profit eg Richard Branson & Virginprofit eg Richard Branson & Virgin

Many people believe that Enterprise is the mostMany people believe that Enterprise is the most

important Factor of Production because good ideasimportant Factor of Production because good ideas

are scarceare scarce..

TASKTASK

Now do Worksheet 4 in your jottersNow do Worksheet 4 in your jotters

ENTERPRISE AND THE ENTREPRENEURENTERPRISE AND THE ENTREPRENEUR

An entrepreneur is an individual who An entrepreneur is an individual who develops adevelops a

business ideabusiness idea and and combines the factors ofcombines the factors of

productionproduction – land, labour and capital – in order – land, labour and capital – in order toto

produce a good or provide a serviceproduce a good or provide a service usually with usually with

a view to earning profit.a view to earning profit.

Entrepreneurs Entrepreneurs take the risktake the risk of investing their of investing their money money

to develop their idea.to develop their idea.

FAMOUS ENTREPRENEURSFAMOUS ENTREPRENEURS

There are many famous successfulThere are many famous successful

entrepreneurs. Do any of you knowentrepreneurs. Do any of you know

anything about these ones?anything about these ones?

Anita Roddick, Alan Sugar, Richard Anita Roddick, Alan Sugar, Richard Branson,Branson,

Tom Farmer, Duncan BannatyneTom Farmer, Duncan Bannatyne

SKILLS OF THE SKILLS OF THE ENTREPRENEURENTREPRENEURWatch the following short video clip aboutWatch the following short video clip about

successful entrepreneurs at the Readingsuccessful entrepreneurs at the Reading

FestivalFestival

BBC - Learning Zone Class Clips - BBC - Learning Zone Class Clips - Exploring business and enterprise at Exploring business and enterprise at Reading festival - Business Studies Reading festival - Business Studies VideoVideo

SKILLS OF AN SKILLS OF AN ENTREPRENEURENTREPRENEURIn pairs think of the skills and qualities In pairs think of the skills and qualities

needed toneeded to

be a successful entrepreneur? be a successful entrepreneur?

How many of these did you get?How many of these did you get?Risk TakersRisk Takers Good Good CommunicatCommunicatorsors

Good Good Decision Decision MakersMakers

Problem Problem SolversSolvers

Good LeadersGood Leaders CreativeCreative

MotivatedMotivated DeterminedDetermined AmbitiousAmbitious

TASKTASK

Visit the website Visit the website

www.topbusinessentrepreneurs.comwww.topbusinessentrepreneurs.com

• Select a top business entrepreneur from the list

• Prepare a short Powerpoint presentation detailing their history and charting their success.

• Your presentation should show your chosen entrepreneurs skills and qualities

• Present your findings to the class.