UNIT 1: DEVELOPING A NEW BUSINESS IDEA
Chapter 1: Being an Entrepreneur
Overview
▪ Who is an Entrepreneur?
▪ Characteristics of an Entrepreneur
▪ What motivates Entrepreneurs?
▪ Who is a social Entrepreneur?
A business is an organisation that produces goods and services that satisfy needs and
wants in order to make profits.
The inputs needed for the production of goods and services are called factors of
production. They are
1. Land
2. Labour
3. Capital
4. Entrepreneurship
Who is an Entrepreneur?
An entrepreneur is the person who combines the factors of production, sets up and runs a
business by taking a risk.
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,UNIT 1: DEVELOPING A NEW BUSINESS IDEA
Characteristics of a successful entrepreneur
Characteristics of an entrepreneur are the personal traits and qualities of a successful
entrepreneur.
Studying successful entrepreneurs in the world helps identify some characteristics that
have helped them become successful.
What motivates entrepreneurs?
People have their own reasons to become entrepreneurs. Some do it to make money or to
turn a hobby into a business while others want to make a difference.
Motivators of entrepreneurs are the factors that encourage a person to start and run a
business.
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,UNIT 1: DEVELOPING A NEW BUSINESS IDEA
An entrepreneur is not necessarily motivated by one of these motivators. In fact an
entrepreneur may be motivated by a combination of these motives. For instance a person
quitting a job to set up his own baking business maybe motivated to do so because of the
larger income he will be able to make but also because he or she enjoys baking and would
love the flexibility and independence it would bring to his or her life. This entrepreneur
may also be motivated by the fact that he or she can create jobs through his business.
Who is a social entrepreneur?
While a normal entrepreneur may be motivated by a combination of profit, non-profit and
ethical motives; a social entrepreneur’s main motive is the ethical motive or the social
welfare motive.
A social entrepreneur is an entrepreneur who is mainly motivated by the social or ethical
motive. This is a person who uses his business skills to help others through a business or
make a difference in the world.
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, UNIT 1: DEVELOPING A NEW BUSINESS IDEA
Chapter 2: Demand and Supply
Overview
▪ Demand
▪ Non-price factors that affect demand
▪ Supply
▪ Non-price factors that affect supply
▪ Demand, Supply and Price
Business Opportunities come from the market. An entrepreneur needs to be alert to the
changes in the market to identify new opportunities.
A market is a place where buyers and sellers meet to exchange goods and services for
money. It does not necessarily have to be a physical place anymore as the exchange can
even happen online. A fish market, a supermarket or a shopping mall are physical markets
where as eBay or online stores are virtual markets. Therefore a market is an interaction
between demand and supply.
Entrepreneurs need to be familiar with the nature of the demand and supply in a market.
Demand
Demand is the quantity of a good or a service, consumers are willing and able to buy at a
given price over a given period of time.
The Law of Demand states that assuming other factors remain constant,
-higher the price, lower the demand;
-lower the price, higher the demand.
Page 4
Chapter 1: Being an Entrepreneur
Overview
▪ Who is an Entrepreneur?
▪ Characteristics of an Entrepreneur
▪ What motivates Entrepreneurs?
▪ Who is a social Entrepreneur?
A business is an organisation that produces goods and services that satisfy needs and
wants in order to make profits.
The inputs needed for the production of goods and services are called factors of
production. They are
1. Land
2. Labour
3. Capital
4. Entrepreneurship
Who is an Entrepreneur?
An entrepreneur is the person who combines the factors of production, sets up and runs a
business by taking a risk.
Page 1
,UNIT 1: DEVELOPING A NEW BUSINESS IDEA
Characteristics of a successful entrepreneur
Characteristics of an entrepreneur are the personal traits and qualities of a successful
entrepreneur.
Studying successful entrepreneurs in the world helps identify some characteristics that
have helped them become successful.
What motivates entrepreneurs?
People have their own reasons to become entrepreneurs. Some do it to make money or to
turn a hobby into a business while others want to make a difference.
Motivators of entrepreneurs are the factors that encourage a person to start and run a
business.
Page 2
,UNIT 1: DEVELOPING A NEW BUSINESS IDEA
An entrepreneur is not necessarily motivated by one of these motivators. In fact an
entrepreneur may be motivated by a combination of these motives. For instance a person
quitting a job to set up his own baking business maybe motivated to do so because of the
larger income he will be able to make but also because he or she enjoys baking and would
love the flexibility and independence it would bring to his or her life. This entrepreneur
may also be motivated by the fact that he or she can create jobs through his business.
Who is a social entrepreneur?
While a normal entrepreneur may be motivated by a combination of profit, non-profit and
ethical motives; a social entrepreneur’s main motive is the ethical motive or the social
welfare motive.
A social entrepreneur is an entrepreneur who is mainly motivated by the social or ethical
motive. This is a person who uses his business skills to help others through a business or
make a difference in the world.
Page 3
, UNIT 1: DEVELOPING A NEW BUSINESS IDEA
Chapter 2: Demand and Supply
Overview
▪ Demand
▪ Non-price factors that affect demand
▪ Supply
▪ Non-price factors that affect supply
▪ Demand, Supply and Price
Business Opportunities come from the market. An entrepreneur needs to be alert to the
changes in the market to identify new opportunities.
A market is a place where buyers and sellers meet to exchange goods and services for
money. It does not necessarily have to be a physical place anymore as the exchange can
even happen online. A fish market, a supermarket or a shopping mall are physical markets
where as eBay or online stores are virtual markets. Therefore a market is an interaction
between demand and supply.
Entrepreneurs need to be familiar with the nature of the demand and supply in a market.
Demand
Demand is the quantity of a good or a service, consumers are willing and able to buy at a
given price over a given period of time.
The Law of Demand states that assuming other factors remain constant,
-higher the price, lower the demand;
-lower the price, higher the demand.
Page 4
