Qualities Needed for Success:
➜ Risk-taking → willingness to take financial and business risks
➜ Innovation → ability to develop new ideas/products
➜ Leadership → ability to motivate and guide others
➜ Decision-making → choosing the best option under uncertainty
➜ Resilience → ability to recover from failure
➜ Creativity → thinking of new solutions
➜ Commitment → dedication and hard work
Example:
➜ An entrepreneur launches a new app → takes financial risk → innovates → leads a team
Analysis:
➜ Innovation → unique product → competitive advantage → increased demand → higher profit
➜ Strong leadership → motivated workforce → higher productivity → improved performance
➜ Risk-taking → new opportunities → business growth → higher returns
Evaluation:
➜ Risk-taking is essential → but high risk may lead to failure
➜ Innovation creates advantage → but may be costly and uncertain
➜ Leadership improves performance → but depends on management style
Role of Entrepreneurship in Starting a Business:
➜ Identifies business opportunities in the market
➜ Organises factors of production (land, labour, capital)
➜ Takes financial risks to start the business
➜ Makes key strategic decisions
➜ Drives innovation and new product development
Example:
➜ A person identifies demand for healthy snacks → starts a business → hires workers → sells products
Analysis:
➜ Identifying opportunity → new business idea → production begins → sales generated → profit earned
➜ Effective organisation → efficient use of resources → lower costs → higher profit
Evaluation:
➜ Success depends on accuracy of market research
➜ Poor decisions at startup → high risk of failure
➜ Access to finance may limit ability to start
Role of Intrapreneurship in Ongoing Success:
➜ Employees act entrepreneurially within a business
➜ Develop new ideas, products, or processes
➜ Improve efficiency and innovation
➜ Help businesses adapt to change
Example:
➜ An employee in a company develops a new product idea → company launches it → increases sales
Analysis:
➜ Intrapreneurship → innovation within firm → improved products → increased competitiveness → business growth
➜ New processes → improved efficiency → lower costs → higher profit
Evaluation:
➜ Encourages innovation → but may require investment and training
➜ Not all employees are willing to take risks
➜ Management support is essential for success
Barriers to Entrepreneurship:
➜ Lack of finance → difficulty starting business
➜ Lack of skills or experience
➜ High competition
➜ Government regulations and legal restrictions
➜ Fear of failure and risk
➜ Economic conditions (e.g. recession)
Example:
➜ A person has a business idea → but cannot get a loan → unable to start
Analysis:
➜ Lack of finance → no investment → business cannot start → lost opportunity
➜ High competition → reduced market share → lower revenue → possible failure
Evaluation:
➜ Barriers vary by country and economic conditions
➜ Government support can reduce barriers
➜ Strong planning can overcome some barriers
Business Risk and Uncertainty:
➜ Risk → situations where probabilities can be estimated
➜ Uncertainty → situations where outcomes are unknown
➜ Businesses face risks such as:
➜ Financial risk
➜ Market risk
➜ Operational risk
Example:
➜ Launching a new product → uncertain demand → possible loss or profit
Analysis:
➜ High risk decision → potential high return → increased profit if successful
➜ Uncertainty → unpredictable outcomes → difficult decision-making → possible losses
Evaluation:
➜ Risk can lead to high rewards → but also significant losses
➜ Diversification can reduce risk
➜ Experience reduces uncertainty but cannot eliminate it
Role of Business Enterprise in Development of a Country:
➜ Creates employment → reduces unemployment
➜ Generates income and wealth
➜ Increases GDP and economic growth
➜ Encourages innovation and technological development
➜ Improves standard of living
➜ Generates tax revenue for government
Example:
➜ New businesses open → hire workers → increase income → boost economy
Analysis:
➜ Business growth → more jobs → higher income → increased consumer spending → economic growth
➜ Innovation → improved productivity → lower costs → global competitiveness
Evaluation:
➜ Benefits depend on economic stability and government support
➜ Rapid growth may increase inequality
➜ Over-reliance on businesses may create economic risks
Exam Tips:
➜ Clearly distinguish entrepreneur vs intrapreneur
➜ Use real or simple examples
➜ Apply chains: cause → effect → impact
➜ Always include evaluation for higher marks