HOW DO SMALL BUSINESSES OPERATE Business Resources N4 BUSINESS IN ACTION/N5 UNDERSTANDING BUSINESS LEARNING INTENTIONS AND SUCCESS CRITERIA Learning Intentions: I understand the resources needed to establish a business Success Criteria: • I can name and describe the 4 Factors of Production • I can explain the skills and attributes of an entrepreneur. FACTORS OF PRODUCTION In order to make a good or provide a service a number of ingredients/resources are required: Land, Labour, Capital and Enterprise These are also referred to as the FACTORS OF PRODUCTION. You can remember these with the pneumonic CELL. LAND Land means the natural resources that businesses use – Plot of land, coal, forests, water, wood, fields, rivers LABOUR Labour means the workforce of a business and includes – Joiners, shop assistants, teachers, Admin staff, electricians, cleaners, managers, etc CAPITAL Capital means the money invested in the business and what this can buy in the way of man-made resources – tools, machinery and equipment that a business owns eg tractors, Lorries, motor vehicles, buildings, factories, etc ENTERPRISE Enterprise means the business ideas that an ENTREPRENEUR or owner has on how to use land, labour and capital in his or her business to make profit eg Richard Branson & Virgin Many people believe that Enterprise is the most important Factor of Production because good ideas are scarce. TASK Now do Worksheet 4 in your jotters ENTERPRISE AND THE ENTREPRENEUR An entrepreneur is an individual who develops a business idea and combines the factors of production – land, labour and capital – in order to produce a good or provide a service usually with a view to earning profit. Entrepreneurs take the risk of investing their money to develop their idea. FAMOUS ENTREPRENEURS There are many famous successful entrepreneurs. Do any of you know anything about these ones? Anita Roddick, Alan Sugar, Richard Branson, Tom Farmer, Duncan Bannatyne SKILLS OF THE ENTREPRENEUR Watch the following short video clip about successful entrepreneurs at the Reading Festival BBC - Learning Zone Class Clips - Exploring business and enterprise at Reading festival - Business Studies Video SKILLS OF AN ENTREPRENEUR In pairs think of the skills and qualities needed to be a successful entrepreneur? How many of these did you get? Risk Takers Problem Solvers Motivated Good Good Decision Communicators Makers Good Leaders Creative Determined Ambitious TASK Visit the website www.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.