Challenges associated with enterprise and entrepreneurship, Raising finance; production method; choosing ownership type; marketing and market penetration (creating a USP); availability of location or staff, Risks associated with enterprise and entrepreneurship., Entrepreneurial, Operational, Economic, Market, Compliance, Technological, Ethical, Entrepreneurial (Risks associated with enterprise and entrepreneurship), Personal and Financial Risk – losing savings, reputational damage, stress, Operational (Risks associated with enterprise and entrepreneurship), May lack the skills or systems to manage daily operations, Economic (Risks associated with enterprise and entrepreneurship), Risks outside of their control e.g. rising interest rates or high inflation, pandemic, Market (Risks associated with enterprise and entrepreneurship), New companies entering the market or aggressive pricing from competitors, Compliance (Risks associated with enterprise and entrepreneurship), Following employment laws, tax compliance, h&s regulations, accurate reporting, Technological (Risks associated with enterprise and entrepreneurship), Threat of disruption caused by failures in tech – cyberattack, data breach, outages, Ethical (Risks associated with enterprise and entrepreneurship), Scandal from unethical suppliers, pollution, false sustainability claims, Importance of assessing and managing risks, Helps Avoid Costly Mistakes, Supports Better Decision-Making, Protects Resources, Improves Financial Sustainability, Helps Avoid Costly Mistakes (Importance of assessing and managing risks), Spot potential problems before they happen - act early to avoid major financial losses, legal issues, or reputational damage through prevention, Supports Better Decision-Making (Importance of assessing and managing risks), Understanding risks leads to confident, informed decisions about investments, expansion, staffing… Avoidance can be used to put off a risky expansion plan, Protects Resources (Importance of assessing and managing risks), Protect key resources such as money, equipment, data, and staff from being lost or harmed – Insurance can cover financial losses for a business, Improves Financial Sustainability (Importance of assessing and managing risks), Regularly assessing and managing risk increase chance of surviving over time. Businesses can diversify to spread risks to increase resilience, Risk management strategies, Avoidance, Spread, Prevention, Insurance, 1. Avoidance (Risk management strategies), Identifying a risk and choosing not to engage in the activity at all (avoiding a market). Protects a business, but may limit growth opportunities if overused., 2. Spread (Risk management strategies), Diversifying by reducing reliance on a single product, supplier, or market. If a business spreads itself too thin, may drift away from its core market., 3. Prevention (Risk management strategies), Taking steps to stop risks from happening in the first place (training, checks, systems). Helps maintain quality/safety, but requires investment and time., 4. Insurance (Risk management strategies), Cover to protect a business financially if a risk becomes reality. Gives peace of mind, but premiums costly and come with T&Cs about level of cover., Types of Insurance (Importance of types of insurance), Public Liability, Employer Liability, Product Liability, Buildings & Contents, Public Liability (Importance of types of insurance), Covers large payouts for member of public injuring themselves on property, Employer Liability (Importance of types of insurance), Covers payouts for staff members becoming ill or injured from doing their job, Product Liability (Importance of types of insurance), Covers payouts for faulty or defective products causing harm to consumers, Buildings & Contents (Importance of types of insurance), Covers financial loss from premises or contents being damaged by events like fire, flooding, storms, or burglary, Other (Importance of types of insurance), Key Person; Fidelity Guarantee; Goods in Transit; Cyber Insurance; Professional Indemnity; Business Interruption

Chapter 12 Key Takeaways

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