ABE Level 4 Diploma in

Business Management

Introduction to
Entrepreneurship

2017 Place image here

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ABE Level 4 Diploma in Business Management –
Introduction to Entrepreneurship
Element 1 – Introduction to entrepreneurship

Learning Outcome 1 – Explain the benefit of entrepreneurship and

innovation to an economy and how new businesses can impact
communities

This presentation is provided by ABE for tutors to use to facilitate classroom learning, in
conjunction with the session plans and activities supplied. Please involve your students
actively in your sessions, using the ideas provided here - plus some of your own.

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INTRODUCTION TO ENTREPRENEURSHIP
Learning Outcomes:

1. Explain the benefit of entrepreneurship and innovation to an economy and how

new businesses can impact communities (Weighting 20%)

1.1 Explain the terms entrepreneurship, enterprise, social enterprise, intrapreneurship, and
innovation

1.2 Explain the key characteristics of micro, small, and medium-sized businesses

1.3 Discuss business models that an enterprise can use

1.4 Discuss types and process of innovation

1.5 Evaluate how organisations can create their own enterprising culture

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 Explain the terms
entrepreneurship, enterprise,
social enterprise,
intrapreneurship, and innovation

1.1

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 Starting and sustaining a An
business with the aim of entrepreneur
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making a profit. herean
starts
enterprise
It can be associated with
innovation or a simple life-style
business

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What businesses do you know?

• Discuss in groups
– Are they small/large
– Local, national or international
– What are their characteristics?
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Business can be ‘Not for Profit’

These businesses do not earn profits for owners/shareholders. They have a

charitable aim and all earnings cover costs and achieving these aims.

There are 2 main categories:

• Charities
• Social enterprises

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Social enterprises

• Similar to charitable aims

• Run using business methods
• Competitive pay
• Commercial strategies
• Aim for profit maximisation
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• Profit used for social aims

Example Belu Water – 100% profits donated

to the charity WaterAid

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 How does a business start ?

With an idea

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7 sources of opportunity – Peter Drucker

Change in
Unexpected Inadequacy in industry or
Incongruity
the process market
structure

Changes in
Demographic perception, New
changes mood and knowledge
meaning

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Other ways to develop business ideas

• SWOT analysis
• Open Source Innovation
• PESTLE
• Continuous Improvement

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Activity : Research 4 examples of innovation

for next class

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 Why start-ups succeed ?

A TED talk by Bill Gross

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Assessment – Your business

Produce a business plan for an enterprise

• This may be an enterprise you want to set

up in the future or never at all
• After each session use the skills and
knowledge learnt to develop your Place image here
business plan.
• It will be submitted near the end of the
programme.

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Your business plan

• Supported by a PowerPoint presentation

• Provides the activities, aims and values of
your business
• Vital document for seeking investment
• Introduction, Main section and Place image here
Appendices
• Usually 10-25 pages
• Content is key

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 Explain the key characteristics of
micro, small, and medium-sized
businesses

1.2

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 Micro Business

-Very small enterprise

-Usually sole trader
-Lifestyle business

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Definitions of Micro and SMEs

Size Staff Turnover Balance

Headcount OR Sheet Total

Micro <10 <Euro 2mil <Euro 2mil

Small <50 <Euro 10mil <Euro 10mil

Medium <250 <Euro 50mil <Euro 43m

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Common management structures

• Hierarchal
• Flat Structure
• Matrix Structure

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• Which is more devolved?
• Which is the best structure – you chose

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 What is a stakeholder?

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 These are individuals, groups
It can be
of people or organisations who Place image
have an interest or concern in a internal
here
of
business or who might be external
impacted by the decisions
made by the business. They
can affect or be affected by an
organisation.

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Stakeholders

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The power and influence of stakeholders

• The Mendelow Matrix looks at the

impact a stakeholder can have on the
objectives of an organisation.

• This is a form of stakeholder mapping

and it looks at two areas: Place image here

– The likelihood of stakeholders to

exercise power
– The strength of the stakeholder to
impose its wishes

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Stakeholders – The Mendelow Matrix

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 Discuss business models that an
enterprise can use

1.3

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 How do we sell?

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Sales Channels

• Business to Business (B2B)

– Business sells to another business
– E.g. raw materials to processor

• Business to Customers (B2C)

– Business sells to end user customers
– E.g. clothes sold to customer Place image here

• Customer to Customer (C2C)

– Customer sells goods to other customers
– E.g. eBay transactions

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Common business models B2B, B2C & C2C

Affiliate Freemium Auction Subscription

Bait and
Franchising Direct sales
Hook

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 Discuss types and process of
innovation

1.4

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Other forms of innovation

• Schumpeter events that lead to

innovation
– New products and services
– New methods of production
– New markets
– New sources of supply
– New structures Place image here

Activity – Work in pairs to discuss

examples of innovation

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How an enterprise innovates

Produce a business plan for an enterprise

• Kaizen
• Six Sigma
• Quality Circles
• Wallas vs Van Oech - Creativity Place image here

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 Evaluate how organisations can
create their own enterprising
culture

1.5

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 What do you do with ideas?

- Make money from it

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Kotler’s 7 steps to commercialisation

1. Idea generation
2. Idea screening
3. Product analysis
4. Development and testing
5. Product and marketing mix development Place image here

6. Market testing
7. Commercialisation

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Ideas and creativity

4 steps to idea generation:

1. Prepare
2. Incubate
3. Illuminate
Place image here
4. Verify

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Your business plan
• Consider the points learnt from this session and
incorporate into your business plan
• At this stage, you should be looking at
– Stakeholders
– Financing
– Structure
– Business Model
• Supported by a PowerPoint presentation Place image here
• Provides the activities, aims and values of your
business
• Vital document for seeking investment
• Introduction, Main section and Appendices
• Usually 10-25 pages
• Content is key

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 Contact
ABE’s offices are located in
New Malden,
Greater London, UK.

5th Floor, CI Tower, St. Georges Square,

New Malden, Surrey, KT3 4TE, UK

Tel. +44 (0)20 8329 2930

Fax. +44 (0)20 8329 2945

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