FD-301_vsyo / Subj / 746-Entrepreneurship. Предпринимательство

4.Gas, water and electric power companies are _____.

5.The University is a ______corporation; it is an educational ______that reinvests all its money.

6.Shares can be transferred only by the _________ of other shareholders.

7.A corporation has an opportunity to attract _____ and make ______ in plants, equipment and research.

4. Can you complete the following table? Use the information from the text

THE FORMS OF BUSINESS OWNERSHIP

Type of	Sole trader or	Partnership	Private Limited	Public Limited
business	proprietor		Company (LTD)	Company (PLC)
Number of members
Source of capital
Profit
Control
Liability
Examples

5. Complete the text with the words under the line

Strengths and Weaknesses of Different Forms of Business Organization.

Proprietorships, partnerships and corporations have certain ...1… and

disadvantages. These can be considered using the following criteria: simplicity,.. 2 .. to raise capital, liability, control, taxation, etc.

Of the three basic forms, the proprietorship is the simplest. The legal …3… for starting a proprietorship are limited to registering the company’s …4… Going out of business is also very easy: no legal procedures are required. Starting a…5… is less

complex than starting a corporation, but somewhat more so than starting a proprietorship. Simplicity has its advantages but it is not the only…6… to consider when choosing the right form of business…7…

Ways of raising…8… are different under different fo		rms of business
organization. The ...9… of capital for a proprietor	ship is usually the owner’s own
savings and …10… from banks. More capital can be ra	ised by bringing in …11… or

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by incorporating. The so-called venture capital …12 … is another important source

of capital for new businesses.

A major difference among organizational forms is the …13… to which owners

are personally liable for …14… of the business. If a proprietorship …15…, creditors

can claim the owner’s property to pay off the debts of the business.

For a partnership, liabilities can also be a serious …16… The limited …17… feature of the corporation is its biggest advantage.

Procedures, source, thing, problem, name, capital, advantage, ability, partnership, debts, degree, loans, liability, organization, fails, market, partners.

Text 3. You are an entrepreneur

1. Read and translate the text. How can you characterize an entrepreneur?

An entrepreneur is a person who organizes and manages his own business for profit; one who creates the opportunity for earning profit by seeking to solve recognized problems. Entrepreneurs often develop ideas from their prior work experiences. Most have some kind of self-employment as a teenager. They usually are high achievers and perfectionists; they also are risk-takers. Entrepreneurs learn from their experiences. Yet they continue to be innovative in their ventures. They also use failure as a point of pride. They will try, and then try again, until they succeed.

Characteristics of an Entrepreneur

•Performs better when the tasks are challenging rather than routine

•Insists upon taking personal responsibility for their performance

•Does things before he has to do them; does not let things slide

•Seizes unusual opportunities that often require risks

•Concerns himself with high quality of product

•Assertive, confronts problems directly

•Efficient, looks for or finds ways to do things f aster or at a less cost

•Has commitment to work contract, does job on time

•Recognizes the importance of business relationships, and places long-term good

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will over short-term gain

2. Will you add any qualities to the list below?

An Entrepreneur Should Be:

∙Ambitious

∙Enthusiastic

∙Creative

∙Confident

∙Competitive

∙Success oriented

∙A risk-taker

∙An ideas taker

∙Organized

∙Finance oriented

Consult exercise 15 on page 291 in “World of Work”

3. You start your own business. Which of the motives are important for you? Summarise your answers.

An important part of your self-analysis should include what it is you hope to achieve by starting a business. Motives may range from achieving monetary gain to enhancing status to establish a comfortable working environment. You could have a combination of business and personal objectives.

Why do it?

Questions to Ask Yourself:

	∙	Money	∙ Why do I want my own business?
	∙	Type of work
			∙ Do I really have the desire?
	∙	Working hours
			∙ Do I have the time?
	∙	Experience
			∙ Do I have the set-up money?
	∙	Excitement
			∙ Am I prepared for sacrifices if
	∙	Independence
			necessary?
	∙	Achievement
			∙ What is my product or service?
	∙	Satisfaction
			∙ Who is my market?

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∙Power

∙Personal relations

∙Where will I sell it?

∙How will I sell it?

∙When will I sell it?

∙Do I need a partner?

∙Can I do it?

∙Should I do it?

4. How would you describe these points if you started your own business?

To Succeed In Your Business You Need:

•Idea (product or service)

•Goal (your company's objective)

•Market (potential customers)

•Competitive spirit (can you compete with rival bu siness?)

•Strategy (advertising, promotion, sales, etc.)

•Cost and price (how much to charge)

•Quota (sales to make a profit)

•Plan of operation (location, materials, supplies, distribution, etc.)

•Employees and partners (do you need. how many, co st)

•Time schedules (licenses, permits, manufacturing of product, sales)

•Financing (where will set-up money, backing money, loans, investments come from)

•Financial plan (budget, start-up costs, outlay, p rofit, expectations, anticipated expenses and outcome, and "rainy day" money)

The greatest determinant of the success of your business is you, your character and skills. This you must believe in if your business is to have any chance of prospering. The type of person who blames external factors for failure and believes that his own decisions have little impact on the course of future events is not suited to building a business.

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5. Study these figures and comment on them.

Interesting statistics for young businessmen

What Is Required to Succeed

Hard work	52%
Intelligence	21%
Better product	10%
Experience	9%
Personality	8%
Why Businesses Fail
Bad management	33%
Inadequate capital	21%
Lack of experience	16%
Lack of dedication	16%
Economic circumstances	13%
Poor money management	11 %
High interest rates	7%
Overspending	7%
Other	16%

Start-ups: Who, When, Why

Average age of first self-employment: 28 years

Males:	27 years
Females:	30 years
Started business before age 40:	82%
Males:	85%
Females:	78%
Reasons for Self-employment:
• Financial gain	3%
• Independence	63%
• Other	33%
Seed Money For Start-up Came From:
• Personal savings	41%
• Bank loans	31%
• Friends and relatives	28%

Text 4. Are you ambitious?

1. Read the answers of four people to this question. Add some details to each of the stories.

1) L.V., a manager

I haven’t had enough work experience to know whether I’m ambitious or not yet. My first aim is to get experience in my field. So my first career ambition is to be a good specialist, I guess. I’m not an ambitious person by nature and I don’t get jealous when my friends or colleagues are successful at work — I’m glad for them, because I know that my time will come soon. I’d like to have my own business in cosmetic services and I’m doing my best to achieve that…

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2) A.T., a businessman

I think it's up to my colleagues to judge whether I'm ambitious or not. Of course, I always want to achieve, and when I do I always plan to do something more, but I wouldn't call it "ambition." Moreover, ambition is not the essential component of success at the workplace; I know people who aren't ambitious at all, but are gentle, honest and respectable and have managed to achieve good results in their career development. It all depends on personality; one can be ambitious, but still sell fast food in the street all one's life…

3) T.B., the chief accountant

I’m ambitious, because when I see that there is an opportunity to get a better job, I try to get it. Ambition is a good characteristic; it helps you be successful. I started as an accountant, but it wasn’t enough for me. Now I work as the chief accountant at a company that suits me in every way. And, yet I’m sure that this isn’t the end of my career development. In general, I have to thank my parents, who have educated me well and cultivated characteristics in my personality that help me in my life, especially at work…

4) A.D., a waiter

I think that the only person without ambitions is a dead person. In most cases men are more ambitious than women are. I'm no exception. I want to reach success, but I've started my career at the bottom level, though I understand that I'll move on, maybe in the restaurant business or just organizing my own business. But in order to realize my career ambitions I need contacts I don't have yet. So, initially, there will be a period of hard work, collecting knowledge, work experience and business contacts.

2.How would you answer this question? What do “amb itious”, “ambition” mean in Russian?

3.Do the questionnaire and discuss your answers with a partner.

How do you rate as an entrepreneur?

For each of the following questions find the answer, which comes closest to what

you feel about yourself.

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1.Are you a self-starter?

a.I only make an effort when I want to.

b.If someone explains what to do, then I can continue from there.

c.I make my own decisions. I don’t need anyone to tell me what to do.

2.How do you get on with other people?

a.I get on with almost everybody.

b.I have my own friends and I don't really need anyone else.

c.I don't really feel at home with other people.

3.Can you lead and motivate others?

a.Once something is moving I’ll join in.

b.I’m good at giving orders when I know what to do.

c.I can persuade most people to follow me when I start something.

4.Can you take responsibility?

a.I like to take charge and to obtain results.

b.I’ll take charge if I have to but I prefer someone else to be responsible.

c.Someone always wants to be the leader and I’m happy to let them do the job.

5.Are you a good organiser?

a.I tend to get confused when unexpected problems arise.

b.I like to plan exactly what I'm going to do.

c.I just let things happen.

6.How good a worker are you?

a.I'm willing to work hard for something I really want.

b.I find my home environment more stimulating than work.

c.Regular work suits me but I don't like it to interfere with my private life.

7.Can you make decisions?

a.I am quite happy to execute other people's decisions.

b.I often make very quick decisions which usually work but sometimes don't.

c.Before making a decision I need time to think it over.

8.Do you enjoy taking risks?

a.I always evaluate the exact dangers of any situation.

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b.I like the excitement of taking big risks. c. For me safety is the most important thing.

9.Can you stay the course?

a.The biggest challenge for me is getting a project started.

b.If I decided to do something, nothing will stop me.

c.If something doesn’t go right first time I tend to lose interest.

10.Are you motivated by money?

a.For me, job satisfaction cannot be measured in money terms.

b.Although money is important to me, I value other things just as much.

c.Making money is my main motivation.

11.How do you react to criticism?

a.I dislike any form of criticism.

b.If people criticize I always listen and may or may not reject what they have to say.

c.When people criticize me there is usually some truth in what they say.

12.Can people believe what you say?

a.I try to be honest, but it is sometimes too difficult or too complicated to explain things to other people.

b.I don’t say things I don’t mean.

c.When I think I’m right, I don’t care what anyone el se thinks.

13.Do you delegate?

a.I prefer to delegate what I consider to be the least important tasks.

b.When I have a job to do I like to do everything myself.

c.Delegating is an important part of any job.

14.Can you cope with stress?

a.Stress is something I can live with.

b.Stress can be a stimulating element in a business.

c.I try to avoid situations which lead to stress.

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15.How do you view your chances of success?

a.I believe that my success will depend to a large degree on factors outside my control.

b.I know that everything depends on me and my abilities.

c.It is difficult to foresee what will happen in future.

16.If the business was not making a profit after five years, what would you do?

a.Give up easily.

b.Give up reluctantly.

c.Carry on.

Scoring: use the key to calculate your total score. Then check opposite to see how you rate as an entrepreneur.

Key	a	b	c
1	0	2	4
2	4	2	0
3	0	2	4
4	4	2	0
5	2	4	0
6	4	0	2
7	0	4	2
8	2	4	0

Key	a	b	c
9	2	4	0
10	0	2	4
11	0	4	2
12	2	4	0
13	2	0	4
14	2	4	0
15	0	4	2
16	4	2	0

44 or above

You definitely have the necessary qualities to become the director of a successful business. You have a strong sense of leadership, you can both organise and motivate and you know exactly where you and your team are going.

between 44 and 22

You may need to think more carefully before setting up your own business. Although you do have some of the essential skills for running a business, you will probably not be able to deal with the pressures and strain that are a part of the job. You should perhaps

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consider taking some professional training or finding an associate who can compensate for some of your weaknesses.

below 22

Managing your own business is not for you. You are better suited to an environment where you are not responsible for making decisions and taking risks. To operate successfully you need to follow well defined instructions and you prefer work that is both regular and predictable.

Text 5. The difference between an entrepreneur and a manager

1. Scan the text to determine the difference between an entrepreneur and a manager.

Strategic Orientation. In terms of strategic orientation, the entrepreneur is oriented toward a search of new opportunities (ideas). This orientation is most important when the output falls due to rapid changes in technology, consumer demand, social values or political rules. When the use of planning systems which control current resources is the strategic orientation, there is more pressure for the administration (manager). This is a peculiar feature for many businesses.

Commitment to Opportunity is the second key business point of difference. The two domains vary greatly in terms of the length of this commitment. Entrepreneurs have a short time span in terms of commitment to opportunity. They have to act and make decisions very quickly. They may have no advisers. They should be able to assume risk. Managers, on the contrary, are slow to act on an opportunity. When action is taken, the commitment is for a longtime span, perhaps too long in some cases.

Commitment of Resources. An entrepreneur, as a rule, introduces resources at periodic intervals, often based on certain tasks or objectives that are supposed to be reached. These resources, often acquired from others, are usually difficult to obtain from lenders or investors. Therefore, the entrepreneur often achieves significant results with very few resources. This allows the resource providers to have as small a level of risk as possible at each stage of business development. While funding for managers may also be in stages, the commitment to the total amount of resources needed is in the

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