Page 31 - Cambridge IGCSE Business Studies

3: Enterprise, business growth and size

Characteristics of successful entrepreneurs
Entrepreneurs come in all shapes and sizes, young and old, male and female,
quiet and showy. There is no such thing as a typical entrepreneur! All successful

entrepreneurs have the ability to take an idea and turn it into a good or service

which can be sold for profit. Successful entrepreneurs share similar characteristics.
■ Innovative – they are good at thinking up new ideas for goods and services or new
ways of presenting existing goods and services.
■ Self-motivated and determined – they have the drive to keep going, even when
things get diff icult.
■ Self-confident – they have a strong belief in their own ability and ideas.
■ Multi-skilled – they have the ability to see an idea through from development to
profitable sales. This requires a good understanding of the functions of finance,
operations, human resources and marketing.
■ Leadership qualities – they have good communication skills, the ability to motivate
others and are good decision-makers.
■ Initiative – they not only have good ideas, but are also able to develop a good plan
for achieving the business’s objectives.
■ Results driven – they are focused on achieving results and make sure products are
sold for profit.
■ Risk-taker – they are prepared to take risks, knowing that failure is a possibility.
Figure 3.1 An entrepreneur needs
They see failure as a positive experience to be learned from.
certain skills and qualities
■ Good at networking – they are prepared to learn from others.
These skills and qualities help to turn ideas into a real and profi table business. 29

Contents of a business plan
KEY TERMS A business plan describes:
■ the business – this part of the plan includes details of the entrepreneur, the idea for
Business plan: a detailed
written document outlining the the business and information about the skills and expertise of managers or workers
purpose and aims of a business who need to be recruited

which is often used to persuade
■ the business opportunity – here you will find information about the product and
lenders or investors to finance a
why the entrepreneur believes customers will buy it; this part of the plan includes
business proposal.
market research
Revenue: the amount a business
earns from the sale of its products. ■ the market – the current size, potential for growth and the product’s main
competitors
■ the objectives of the business – this is what the business hopes to achieve
■ financial forecasts – a cash-flow forecast and projected sales, revenue and profit
for at least the first year of trading.
Market research: see
Chapter 11, page 153.
How business plans assist entrepreneurs
Cash-flow forecast: see
The business plan is important to new (and existing) businesses.

Chapter 20 page 259.
■ The information it contains can be used to persuade lenders such as banks and
investors to provide finance to the business.
■ The plan gives the business a sense of purpose and direction. It sets out the
Business (SMART) resources required by the business such as finance, the number and skills of
objectives: see Chapter 5, workers needed, and how the goods and services will be marketed to consumers.
page 57. ■ The objectives and financial forecasts provide the business with targets to aim at
and enable the business to monitor its progress.