Study Guide: Features of Entrepreneurship, Financing, and Stability

This study guide delves into the core aspects of entrepreneurship, focusing on three key features: the characteristics of successful entrepreneurs, the strategies for financing a business, and the importance of stability in a business. The guide begins by defining entrepreneurship and its significance in society, highlighting the role of entrepreneurs in job creation, economic growth, and innovation. It then explores the essential features of a successful entrepreneur, such as risk capacity, employee encouragement, and innovation. The guide differentiates between short-term and long-term goals and provides examples. The section on financing a business covers the different types of capital, including fixed and working capital, and discusses various financing methods, such as equity financing, venture capital, and bonds. The guide concludes by defining business stability and its importance. The guide includes activities, such as role-playing and budget creation to enhance learning and application of the concepts. The document is a comprehensive resource for students seeking to understand and apply the principles of entrepreneurship.

Managing Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
OBJECTIVES OF STUDY GUIDE................................................................................................4
FEATURE A..........................................................................................................................4
FEATURE B..........................................................................................................................4
FEATURE C..........................................................................................................................4
KEY FEATURE A: FEATURE OF ENTREPRENEURSHIP ......................................................5
KEY FEATURE B: FINANCING A BUSINESS...........................................................................7
KEY FEATURE C: STABILITY IN A BUSINESS.......................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurship refers to capability of individual or group of people to develop and
launch its business so that customer grievances would be removed or reduced (Pauw and et. al.,
2015). In other words, it is a process of combining resources, land, labour, capital etc so that
profit would be generated by reducing the problem in a daily basis. On the topic of
entrepreneurship, study guide will be made so that students would be aware about every topic
and its information which is necessary to accomplish pre set goals of students. Purpose of study
guide is to make a combination of notes from various sources like text book, class notes,
information on online platform, magazines etc so that students knowledge regarding specific
topic would be enhanced to a certain level. Study guide consist of various sub parts like mapping
of diagram so that student will understand the topic properly, summary sheet, index cards, essay
questions etc. Three features which are going to cover in study guide is features of successful
entrepreneur, stability of new venture and financing of new business respectively. Entrepreneur
is the skills which is inherent but on the other side it could be learned also. There are unique
features which is only found in the successful entrepreneur which will be covered in the
remaining report. After that, in this competitive world many companies launches their business
while considering it as unique and innovative but at the last only few will remaining in the list.
So what are the factors which makes the business stable will be explained by taking various
functional example. At last but not the least, financing of business is important as then only
entrepreneur can run their business operation so to achieve pre set goals and objectives. Various
factors which should be done by the owner to successfully fund their own business and how they
could attract investors will be discussed. All the three mentioned features is important for
individual and collective group because it would throw some light on the topic by studying deep
concept with examples related to entrepreneur and various factors which should be considered by
them.

OBJECTIVES OF STUDY GUIDE
FEATURE A
 Student would be able to understand the concept of entrepreneurship and significance of
its in the society
 Different types of features which is essential for every entrepreneur to become successful
 Difference between short term and long term goals
FEATURE B
 Recognise and understand deep concept of financing a business
 Different types of capital and its importance in a business
 Different types of investment and how it works
FEATURE C
 Concept and importance of stability in a business
 Students would be able to understand changes which is required for stability of
organisation
 Different types of leadership styles with knowledge and importance of working
environment for stabilising business performance

KEY FEATURE A: FEATURE OF ENTREPRENEURSHIP
Entrepreneurship is the process of designing and unveiling a new business to solve the
problems of society so to increase profitability of business (Hillson, 2017). But before starting
an business there are few things which an entrepreneur should set in the starting i.e., mission,
vision, goals and objectives of company. Goals are essential for any company as owner have to
align business operations with the goals because then only they can accomplished their purpose
of existence. Entrepreneur are important for economy and society as
 it increase jobs in the country so that employment rate would be reduced.
 Assist country to increase their GDP and disposable income of people so that their
standard of living would be improved.
 Every time new company comes, it came up with the solution which people are having.
So it assist people to live their life smoothly and hassle free.
 Different start-ups which works towards betterment of society helps government to
balance development of regional states or city with the advanced states so that poverty
and inflation rate would remain in equilibrium.
Various features which is important for every entrepreneur to have is,
 Risk capacity: Entrepreneur can only become successful if they are happily ready to take
risk for their business (Olins, 2017). For instance, Facebook would still the college fun
activity if their owner did not think of taking their idea publicly. Or Amazon would not
able to grab market leader position if the owner is thinking about the problem their
business is going to face. Successful entrepreneur will learn their important lesson by
implementing their idea on a real scenario rather than thinking about the risk they are
going to face in the future.
 Encouraging employees on regular basis: It is very important for the entrepreneurs to
encourage and empower their employees on its day to day functioning. Entrepreneurs
have to motivate their employees by using different techniques like providing financial
and non financial benefits so that their physiological need would be attain. Moreover
employees are the assets of company as they are the who are doing their part to make the
product successful and satisfying for customers. So owner of the business should be
motivating in nature.

 Innovation factor: Innovation is the only key in the competitive market to become
market leader or gain competitive advantage over others. Innovative can only be attain if
entrepreneur is able to find out different problem which their people are facing because
they will only buy their product if and only if their needs and demands are satisfying
from it (Basu, 2014). For instance, people needs to buy products by sitting at home, so
idea of amazon came into the actions or customers needs to contact each other through
online platform where they can share their photos or start conversation with other
individual. From this idea of Facebook came into action. So it can be said that future
entrepreneur have to find out the future problems which customers might face and then
try to mould it into product or service which customer could use. But before
implementing any innovation in the company, entrepreneur have to decide two similar
but different thing i.e., short term and long term goals. Short term refers to goals which
they have to attain in the recent future so that their objectives would be achieved. Long
terms refers to combination of shorter goals so that overall mission of the company would
be achieved. For instance, Amazon's main aim is to attain 5 % hike in every month of
2020 in their sales so that their overall revenue would be increased. Increase sales is their
shorter goals and increasing revenue is their long term goals. To study about this topic in
deep please go through this link (https://thepitcher.org/the-most-important-features-of-
entrepreneurship/)
ACTIVITY
Students have to act like a entrepreneur of any business (mostly in retail sector) and have
to set short and long terms goals for their company who has been suffering from loss for past 3
years. Students should be able to identify various measures which should be taken by leader to
save their business will also discuss. At last, how entrepreneur can motivate their employees
should be explain by critically evaluating it.

KEY FEATURE B: FINANCING A BUSINESS
Business finance is one of the essential aspect of every entrepreneur as they requires
money to conduct their business operation so that their pre set mission and vision would be
achieved (Rzevski and Skobelev, 2014). Chances of profitability is high when company is
managing their funds successfully as compare to those who are inefficient in this field. For
instance, if Amazon wants to increase their brand awareness in any country then it requires high
amount of funds invested in their market activities. Without that it would be hard for them to
attain highest level of brand equity of model i.e., loyal customers. So it can be said that every
entrepreneur requires capital in their business to achieve their goals. But there are different types
of capital which company have manage so that equilibrium between fixed capital and working
capital is attain.
 Fixed Capital: It refers to those asset which is essential for any company to run their
business i.e., land, machinery, building equipments, etc. These things can not be
withdrawn in a running business because if any of these is missing then business can not
achieved their purpose of existence. For instance, if Facebook does not have
infrastructure or computers in their daily routine then their business would get collapsed
within 5 minutes. So it is important to have sufficient amount of fixed capital in their
enterprise.
 Working capital: In simple words, difference between currents assets and liabilities is
working capital. It can be exchanged in monetary value within shorter periods of time. It
current assets includes cash in hand and banks, short terms investment, stocks which
company issued etc. On the other side, liabilities consist of bills which are payable in
future, loans, taxes to government etc. Without working capital, company can not achieve
their objectives as it assist in achieving solvency of business, maintain image of company
through advertising, cash discounts while buying materials for daily life etc. For instance,
if Amazon does not have cash in hand or banks they would not be able to pay back their
loans or bills which leads to insolvency of business.
There are different ways through which entrepreneur can attract financing in their business
which is given below with functional examples,
 Equity financing: It means when entrepreneur sells their portion of business to other
individual or group of people in exchange of money so that they can conduct their

business hassle free. In this, share of the profit is distributed or paid by the entrepreneur
to the person who have bought their shares. For instance, company ABC has sell their
20% share to person X in exchange of 30 profit.. So at the time of profit, 30 % of profit
will be given to the person X. But these types of financing is only done in the mature
companies as high investment is required in this.
 Venture capital: In this type of financing, small amount of funds is invested in the early
stage of company by expecting high potential return from it. Major difference between
between both these factors is that in equity high amount of funds is required which comes
with less risk and less return. But in venture capital, low amount of funds is required
which comes with high risk and high return.
 Bonds: It is one of the unique and specific type of financing in which entrepreneur take a
loan from individual or organisation in exchange of fixed amount of return with pre
decided deadlines. Price which is collected in the starting is called face value and
entrepreneur does not have to pay any amount of principle value before the maturity
period comes. For instance company XYZ has take a loan of 1 million dollar for 10 years
on a interest rate of 6%.
Please follow this link to understand the topic more clearly
(https://www.broomfield.co.uk/services/corporate-finance/types-of-business-funding/)
ACTIVITY
Make a group of 3 students and analyse ways through which they can bring investment in
their own company. Students have to note down pros and cons of every ways through which
investment is going to accomplish. At last, best and suitable way through which owner should
bring their investment would be discussed by critically evaluating it. Students have to take make
budget that how will they invest money in their business so to attain maximum utilisation of
resources. (Maximum investment: 4 million dollar)

KEY FEATURE C: STABILITY IN A BUSINESS
Stability refers to when company does not want to increase their market and customer
share in the market and just have to stabilise their business so that constant income would be
generated to the entrepreneur and its business (Mayo, 2016). In other words, when business try
to protect their current position in the market by hoping of improvement in future. There are
advantages of stability as future of business for a shorter period of time is protected from any
types of obstacles which is faced by every company. Moreover, entrepreneur does not have to
face problems like shortage of funds in their working operations. Besides this, quality of product
would also decrease due to high amount of products required at the time of expanding business.
But on the other side, there is also disadvantages of stability of business like entrepreneur would
not be able to attend those heights which they expect in the starting. More importantly their
income will be fixed for a certain period of time which affects long term planning of business in
a negative way. Entrepreneur have to make the balance between stability and expansion of
business as then only their company would attain market leader position in the market. There are
different types of changes which is required for entrepreneur to stabilise their position in the
market which is mentioned below,
Leadership style
Leader plays an important role in the success of business as they guide their employees or
followers to follow the path of success (Butzer and et. al., 2014). In this case, entrepreneur is the
leader of its business and their clarity of vision and mission is important for company to opt the
right path for them. If entrepreneur has specific style in leadership then it would be hard for them
to survive in the critical situation as dynamic leaders can only able to survive in the market.
Various style which should be there in a leader is discussed below,
Autocratic style: This is one the style which is essential in every business but on the
other side it demotivate their employees to a certain level. In this style, leader take their decision
according to their past judgement and experience instead of taking opinions from their ground
level employees. It assist business to defend their position in the market by taking fast decision.
For instance, Apple company founder Steve jobs sometimes act as a autocratic leader as he was
imaginative and visionary in nature. Every entrepreneur have to act like autocratic person but in
a specific time so that business would attain growth in the future by stabilising their position in
the present.

Democratic style: This type of entrepreneur or leader takes opinion of every authorised
person before taking any type of decision which is related to business (Van Der Vegt and et. al.,
2015). But it takes time to settle on one decision as different people has different perceptions of
seeing same thing. For instance, before taking decision on should the business expand their
business or not, entrepreneur have to take opinions of other by voting so that suitable decision
would be taken.
Other than above mentioned style, there are different types of styles which student should learn.
Go through this link (https://wisetoast.com/12-different-types-of-leadership-styles/)
Culture and climate:
Environment at the workplace is made up of climate and culture of a business which
consist of norms, values, perception, ideas, beliefs etc of all individual working in there. If the
environment is full of conflict, fake rumours etc, then it would decrease the motivation of
employees which will persuade to lower productivity and efficiency of overall business.
Entrepreneur have to maintain their environment peace and harmony so that employees can work
with their full potential and assist company to remain at their existing position.
Business model:
It refers to actions plans of any business to earn revenue by products and services through
which customers needs and demands are satisfied (Piercy and Evans, 2014). Entrepreneur should
have clear vision and mission of their business as then only they can align employees activities
with the goals of company. For instance, In the starting Apple was struggling with their growth
as they did not have specific product for their permanent income but after Steve Jobs returned to
its position of CEO, he change their company's business model and deviate their full focus to
making luxury but less expensive electronic product to their customers which in future leads to
one of the most valuable company in the world. So Entrepreneur have to identify their focus as
then only they would be able to attain stabilisation in their business.
ACTIVITY
To understand the topic more clearly, students have to find out five companies who have
changed their business model in the middle. Example of Apple has been taken in the notes so
avoid using the same company again. Reason behind changing business model and how it impact
company's profitability and sales would be discussed with proper data and statistics. Moreover,
students have to write SMART objectives of every company ( for 2021) they have chosen for the

activity and different types of role entrepreneur plays while implementing change in the
organisation.
CONCLUSION
It can be concluded from the above mentioned information that study guide helps student
to increase their knowledge regarding specific topic which they have been reading. Besides this
it also helps them to learn key elements which is important for any topic to fully understand it by
writing it down briefly. Apart from this, entrepreneur is an important individual in the society as
they assist them to improve standards of living which makes the environment friendly for
everyone. Different types of activities which are mentioned above will help reader to understand
the topic with clarity. Every entrepreneur should opt different types of leadership style while
handling situations as it helps them to maintain and increase overall efficiency and productivity
of a business. There are many points which left untouched but important for students to
understand the topic of entrepreneurship like marketing tools and techniques used by business to
grow their business, different types of innovation approaches which they should opt to gain more
profitability in business. Other than this, various types of skills and competencies which
entrepreneur must have to make their business profitable can also be studied to get more insights
about entrepreneurship.

REFERENCES
Books and Journals
Basu, R., 2014. Managing quality in projects: An empirical study. International journal of
project management.32(1). pp.178-187.
Butzer, S., Schötz, S., Kruse, A. and Steinhilper, R., 2014. Managing complexity in
remanufacturing focusing on production organisation. In Enabling Manufacturing
Competitiveness and Economic Sustainability (pp. 365-370). Springer, Cham.
Hillson, D., 2017. Managing risk in projects. Routledge.
Mayo, A., 2016. Human resources or human capital?: Managing people as assets. Routledge.
Olins, W., 2017. The new guide to identity: How to create and sustain change through managing
identity. Routledge.
Pauw, J.C., Van der Linde, G.J.A., Fourie, D.J. and Visser, C.B., 2015. Managing public money.
Pearson Holdings Southern Africa.
Piercy, N. and Evans, M., 2014. Managing marketing information (rle marketing). Routledge.
Rzevski, G. and Skobelev, P., 2014. Managing complexity. Wit Press.
Van Der Vegt, G.S., Essens, P., Wahlström, M. and George, G., 2015. Managing risk and
resilience.