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.