Enterprise (0454) | Behaviours of entrepreneurs

Introduction: From Skills to Action

Welcome! In the previous topic, we looked at the list of powerful Enterprise Skills (like creativity, leadership, and resourcefulness). But having a skill tucked away in your mind is not enough—you have to use it!
This chapter focuses on Behaviours, which are the visible actions and attitudes that show those skills are being put into practice.

Think of it like learning to play the guitar: the skill is knowing the chords, but the behaviour is actually practicing every day and performing on stage.

Why Understanding Entrepreneurial Behaviours is Important

Understanding these behaviours helps you:

• Identify what successful entrepreneurs actually do.
• Evaluate your own actions during your enterprise project.
• Recognise the traits you need to develop to overcome business challenges.

Section 1: How Enterprise Skills Lead to Observable Behaviours

The syllabus requires you to recognise how entrepreneurs use their skills. This means knowing the skill and then naming the action that results from it.

Key Skills and Their Matching Behaviours

Every skill you possess must manifest as an action or attitude (a behaviour) in the business world:

1. Taking Initiative

• Skill: The ability to act and start something independently.
• Behaviour in Practice: The entrepreneur proactively starts seeking funding, even before the business plan is fully polished. They don't wait for permission; they take the first step.
• Example: A school entrepreneur notices a need for healthier snacks during break time and immediately begins planning a small smoothie stand, instead of waiting for the school canteen to change its menu.

2. Creativity and Innovation

• Skill: The ability to think originally and introduce new ideas, products, or processes.
• Behaviour in Practice: Developing a unique selling proposition (USP) or finding a creative, low-cost solution to a marketing problem.
• Example: An entrepreneur running a tutoring business develops an interactive, gamified app to teach difficult concepts, instead of using traditional worksheets.

3. Taking Responsibility and Delegation

• Skill: Being accountable for actions and trusting others to manage tasks.
• Behaviour in Practice: When a project fails, the entrepreneur accepts the failure (taking responsibility) and immediately begins reviewing the actions of their team members to find a solution (effective leadership and delegation).
• Common Mistake to Avoid: A common mistake is assuming "taking responsibility" means doing everything yourself. True entrepreneurial behaviour often involves delegating tasks to those best suited for them, but still holding final accountability.

4. Perseverance and Motivation

• Skill: Determination to succeed despite difficulties, setbacks, or failure.
• Behaviour in Practice: Continuing to refine a product and seek new investors after receiving 20 rejection letters. They show grit—a determined and relentless spirit.
• Analogy: Perseverance is like a GPS recalculating the route every time you take a wrong turn. The entrepreneur keeps their eyes on the final destination (the aim) and adjusts their methods (the objectives).

5. Taking Calculated Risks

• Skill: The ability to identify potential risks and rewards before making a decision.
• Behaviour in Practice: Instead of blindly investing all their savings, the entrepreneur conducts a thorough SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) and creates a detailed cash flow forecast before launching a major marketing campaign.

Quick Review: Behaviours = Skills in Action

The exam might ask you to explain how an entrepreneur demonstrated perseverance. Your answer should describe the action: "The entrepreneur demonstrated perseverance by continuously applying for small business grants after their initial loan application was rejected."

Section 2: Learning from Named Entrepreneurs

The syllabus specifically asks you to be familiar with named entrepreneurs, both from your local community and wider society, and to recognize how they used their enterprise skills.

Why Study Other Entrepreneurs?

Studying real-life examples gives context to the skills we’ve discussed. It moves the theory off the page and into the real world. By reading about successful (and unsuccessful) business people, you learn:

• The variety of challenges faced (e.g., finance, technology changes, competition).
• The different ways skills can be combined (e.g., using both leadership and self-confidence to negotiate a tough deal).

Step-by-Step: Recognising Skills Used by an Entrepreneur

When you read a case study about an entrepreneur, follow these steps to identify their behaviours and underlying skills:

Step 1: Identify the Challenge or Opportunity

Example: The entrepreneur needed a loan to expand their manufacturing facility.

Step 2: Note the Action Taken (The Behaviour)

Example: They created a detailed business plan, scheduled five meetings with different banks, and practiced their presentation pitch until it was perfect.

Step 3: Determine the Underlying Enterprise Skill

Example: Planning the document and appointments shows Prioritisation/Time Management. The confident presentation shows Self-Confidence and Influencing Skills.

Step 4: Evaluate the Outcome

Example: They secured the loan on the third attempt, demonstrating Perseverance.

Did you know? Many of the world's most famous entrepreneurs failed multiple times before achieving success. Walt Disney was fired from a newspaper for "lacking imagination," and he faced numerous bankruptcies before creating the successful Disney empire. His behaviour was pure perseverance.

The Importance of Context

The way an entrepreneur uses a skill depends entirely on their situation. For example:

• A local market stall owner might show Resourcefulness by using scrap wood to build shelving and sourcing low-cost, local suppliers.
• A global tech start-up founder might show the same Resourcefulness by negotiating a strategic partnership with a massive corporation that can provide distribution channels they can’t afford to build themselves.

The skill (Resourcefulness) is the same, but the behaviour (the specific action taken) is different because the context (local vs. global) is different.

Section 3: Self-Evaluation of Behaviours

As you work through your own enterprise project (Component 2), you will be asked to identify and evaluate your own skills. This requires you to look critically at your own behaviours.

How to Evaluate Your Own Enterprising Behaviours

Evaluating your behaviours means asking:

1. Did I apply the skill successfully?

• Behaviour: I worked late to finish the presentation slides.
• Skill Evaluated: This shows Motivation/Determination. (Success: Yes, the slides were finished.)

2. Could I have used a skill more effectively?

• Behaviour: When planning the budget, I forgot to account for delivery costs.
• Skill Evaluated: I lacked Practical Skills/Knowledge and Prioritisation in financial planning. (Improvement: Next time, I will use a checklist for costs.)

3. What did I learn about my own abilities?

• Behaviour: I confidently spoke to the local newspaper about the charity event.
• Skill Learned: I discovered I have strong Self-Confidence when talking about my project, which is vital for future Influencing Skills.

Don't worry if this seems tricky at first! Self-evaluation is a core entrepreneurial behaviour. It’s okay to find weaknesses, as long as you plan how to turn them into strengths.

Key Takeaway

An entrepreneur’s behaviour is the proof that they possess enterprise skills. When studying entrepreneurs, always link their actions (behaviours) back to the core enterprise skill they were demonstrating (e.g., accepting failure = responsibility; trying again = perseverance).