Enterprise & Entrepreneurship

Exam code: 7115

Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

An entrepreneur is a person who is willing and able to create a new business idea or invention and takes risks in pursuing success
- Successful entrepreneurs can identify and pursue opportunities, create value for customers and build thriving businesses
Entrepreneurs require a unique set of characteristics and skills

Successful entrepreneurs tend to be very persuasive in their communication and decisive in their decision-making

Characteristic	Explanation
Creativity	Developing new solutions to solve problems helps a business stand out from rivals and achieve success
Hard working	Starting a business is often the sole responsibility of a single entrepreneur, who will need to be able to solve problems with limited support
Resilience	Entrepreneurs must keep going, even when things go wrong Many face setbacks such as financial difficulties, customer complaints, or failed ideas, but they must learn from mistakes and keep trying
Initiative	Entrepreneurs must be able to make decisions that will determine the success or failure of their business Entrepreneurs need to be persuasive communicators Persuading lenders, investors and customers to support their business is central to achieving financial success
Self confidence	Entrepreneurs need to believe in themselves and their business ideas Confidence helps them overcome obstacles, lead others and take risks even when success is not guaranteed
Risk taker	Entrepreneurs take financial, personal or professional risks These risks can pay off with great rewards, but they can also lead to failure and financial loss An entrepreneur may invest their life savings into a new venture or quit a secure job to start their own business They may also take risks by introducing new products or entering new markets

A business plan is a document, produced by the owner of a business, which provides forecasts of sales, costs and cash flow and details key objectives

The main aim of producing a business plan is to reduce the risk associated with starting a new business and help the owners raise finance
Having carried out research to support the plan, the business will be well-informed about the potential problems and chance of success
A well-written business plan can help a business obtain finance
- Lenders (e.g. banks) and other investors will be able to explore the plan and make an informed decision about whether the business is credible and worth the financial risk
- Investors (e.g. venture capitalists) will use the business plan to explore whether there is an opportunity to increase the value of their investment and make a worthwhile profit
A clear action plan provides direction for the business and helps lenders and investors have confidence in the future success of the business
Most high street banks can provide a detailed template for business owners to complete when applying for finance

The business idea
- A clear explanation of the goods or services provided by the business, helping to attract investors
- May also include the history of the business idea
Business aims and objectives
- What the business wants to achieve in the medium and long term
- Aims can be both financial and non-financial depending on the business
Target market
- Explains who the business aims to serve, including age, gender, and income
- Forms part of the firm's marketing strategy
Forecast revenue
- Projects the business’s anticipated income from sales
- Calculated as: Sales Revenue = Price x Quantity Sold
- Helps plan for break-even levels of output
Forecast costs
- Predicts fixed, variable, and total costs to manage spending effectively
- New businesses often have high startup costs, such as initial stock
Profit forecasts
- Investors review profit forecasts to assess the business’s ability to repay borrowed funds, such as bank loans
Marketing mix
- Outlines the marketing strategy for attracting customers
- Includes Product, Place, Price, and Promotion
Cash-flow forecast
- Explains management of cash inflows and outflows monthly to prevent liquidity issues
Sources of finance
- Details funding sources for the new business, such as loans, owner’s funds, or venture capital
Business location
- Describes the proposed business location, including a map and advantages like good transport links or customer proximity

Governments often provide support to entrepreneurs
- This encourages them to set up new businesses or take steps to grow their business
Reasons for providing government support include:
- Increase the country's level of output to achieve economic growth
- Reduce the level of unemployment as new or growing businesses create jobs
- Improve choice for consumers by providing competition for existing businesses
- Encourage entrepreneurs to set up social enterprises which may support disadvantaged groups or improve communities

Training and support sessions
- Advice regarding finance, operations and marketing can often be accessed through local authorities
- Support sessions offered by business mentors allow entrepreneurs to ask specific questions related to their business
Enterprise zones
- Enterprise zones are geographic areas which provide tax breaks and Government support to help businesses grow
  - Enterprise Zones can provide access to low-cost premises and incentives such as reduced business rates
  - They are often linked with universities that share expertise and facilities, especially in less economically-developed regions
Finance
- Some governments provide low-interest start-up loans and grants for new or growing businesses that create jobs or invest in training workers

Characteristics of successful entrepreneurs