Entrepreneurship (DP IB Business Management)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
The Role of Entrepreneurship in a Business
Businesses are usually started by an entrepreneur
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
What do Entrepreneurs do?
What do they do? | Explanation |
|---|---|
They organise resources |
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They make business decisions |
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They take risks |
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There are many examples of successful entrepreneurs who have been brought in to run or expand an existing business
These individuals bring a unique entrepreneurial spirit into the business which helps to drive it forward and expand
Examples of entrepreneurial CEOs
Howard Schultz was hired by Starbucks in 1982 as Director of Retail Operations and Marketing. He later left to start his own coffee company but returned to Starbucks in 1987 as CEO. Under his leadership, Starbucks expanded globally and became one of the most recognised brands in the world
Marissa Mayer was brought in to lead Yahoo! in 2012 as CEO. She implemented several initiatives to revitalise the struggling company, including acquisitions, product improvements, and a renewed focus on mobile
Examiner Tips and Tricks
Starting up and running a business isn't just a financial risk - it's hard work that often personally challenges even the most resilient individuals. It takes a special kind of person to become an entrepreneur.
Many entrepreneurs have to be prepared to take on a wide range of roles, at least initially, and will probably have to work very long hours. The need to earn a living whilst building a business is also likely to be a constant concern. Being responsible for every decision and picking themselves up after failure will be challenging.
Intrapreneurship
Intrapreneurship refers to the practice of promoting entrepreneurial thinking and behaviour within an existing business
It involves empowering employees to think and act like entrepreneurs
The business encourages them to take risks, innovate, and develop new ideas and projects that may benefit the business
Intrapreneurship allows businesses to tap into the creative potential of their employees and generate new products/services or processes that can drive growth and competitive advantage
This helps to create a culture that generates a sense of ownership and engagement among employees which increases motivation and helps to retain top talent
To promote intrapreneurship businesses may provide resources to employees or offer incentives/rewards for successful projects
Examples of Intrapreneurship in Business
Example | Explanation |
|---|---|
Google |
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Sony Playstation |
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3M |
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Examiner Tips and Tricks
Intrapreneurship requires encouragement to grow within a business - it doesn't 'just happen'.
Senior management needs to lead by example, be prepared to delegate and provide support for employees through mentoring or teamworking opportunities, for example
Innovation and problem-solving should be rewarded either financially or with other appropriate incentives
Key decision makers need to ensure that employees have the resources to allow them to unleash their innovative ideas
Overall a business culture that encourages intrapreneurship is essential - and this, in itself, isn't easy to create!
Characteristics & Skills Required by Entrepreneurs
Entrepreneurs require a unique set of characteristics and skills
Perhaps one of the most valuable skills of an entrepreneur is the ability to communicate persuasively
Persuade potential financial backers of the merits of their idea
Persuade people to join them in creating the product/service
Persuade customers of the value of their product/service
All of the skills work together to create and drive an innovative idea towards success
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