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Unit 1 · Revision notes

Entrepreneurship — NCFE Business & Enterprise revision notes

Content area 1 covers entrepreneurship, business organisation and stakeholders. You need to understand the role of a successful entrepreneur, entrepreneurial motivators, and the skills and attributes an entrepreneur needs, along with the financial and non-financial aims and objectives a business might set. It also covers the six legal structures — sole trader, partnership, franchise, private limited company, public limited company and co-operative — the impact of flat and tall structures, delayering, redundancy and reorganisation, and the internal and external stakeholders a business engages with.

Content area 1: Entrepreneurship, business organisation and stakeholders

1.1.1

Being an Entrepreneur

Entrepreneurs are the people who start their own businesses or enterprises. Entrepreneurship is a skill and entrepreneurs take calculated risks with the aim…

~3 min read
1.1.2

Entrepreneurial Motivators

Entrepreneurs may be motivated to start their own business for the following factors: Financial (profit as a financial reward) financial independence - being…

~1 min read
1.1.3

Entrepreneurial Skills and Attributes

Having certain skills or attributes increases an entrepreneur's chances of making their business successful. Attribute - Attributes are something that you…

~1 min read
1.2.1

Reasons for Aims and Objectives

Aims are the main overall goal of a business or enterprise. Objectives are the little goals that help the business to achieve its aim. Think of it as a…

~2 min read
1.2.2

Financial Aims and Objectives

Financial aims and objectives are those that are linked to revenue, costs, cash or profit. There are 5 types of financial aims a business might have…

~2 min read
1.2.3

Non-Financial Aims and Objectives

In addition to monetary aims and objectives, a business may have other aims that are non-financial: Positive Reputation Reputation is the general perception…

~6 min read
1.3.1

Legal Structures

There are 6 different types of business ownership: Sole Trader Partnership Franchise Private Limited Company (Ltd) Public Limited Company (PLC) Cooperative…

~5 min read
1.3.2

Structural Characteristics

There are two types of structures that businesses can be organised in: tall & flat. A hierarchy shows the layers of management and authority in a business or…

~3 min read
1.3.3

Restructuring

Delayering is when a business removes a layer of management from its organisational hierarchy — it becomes flatter. Redundancy is when a business eliminates…

~2 min read
1.4

Stakeholder Engagement

Stakeholders are anybody that has an interest in a business. Stakeholders are impacted by a business's operations, but they can also have an impact on the…

~6 min read

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