Unit 12: Skills and the entrepreneur (LEVEL 3)
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- Marilynn Conley
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1 (LEVEL 3) Learning outcomes By completing this unit candidates will develop knowledge, understanding and skills of the necessary attributes of a successful entrepreneur and the stages involved in the development of entrepreneurship. Candidates will produce evidence to meet the unit assessment objectives in order to show that they understand: the necessary skills, quality and characteristics of successful entrepreneurs the development and financing of new ideas how to attract customers and build customer loyalty how to evaluate own potential as an entrepreneur. Assessment objectives 1 Provide examples of the skills, qualities and characteristics of successful entrepreneurs Knowledge, understanding and skills Importance of the personal qualities of the entrepreneur including: approach to risk-taking positive attitude problem-solving flexibility and adaptability creativeness intuitiveness drive to succeed Assessment Objectives 2 to 6 are based on the planning of an entrepreneurial activity by the candidate 2 Demonstrate the stages involved in the development of new ideas 3 Describe how to obtain finance for new ideas Stages of development: gathering information as a normal part of life. Importance of watch, look and listen at all times. researching old, new or niche markets investigating competition using various means such as: mystery shopping, buying and returning goods, stealth but nothing illegal recognising opportunities may be gut-feeling or instinct addressing negativism other people may not always see the possibilities Sources of finance to best meet requirements: own capital friends and family banks and other investors venture capital share capital Government grants (continued overleaf) OCR Level 3 Nationals in Business 1
2 Assessment objectives 3 Cont. Describe how to obtain finance for new ideas 4 Demonstrate the methods used by entrepreneurs to attract customers 5 Demonstrate how to value customers and build their loyalty 6 Evaluate your personal potential as an entrepreneur and recommend how these skills could be developed Knowledge, understanding and skills Obtaining finance: devising a potential business plan presenting a potential business plan to potential financiers winning support from potential financiers Identifying potential customers and taking effective measures to attract them including: market research promotions, gimmicks generating free publicity (PR) advertising developing a brand profile Building loyalty: taking care over detail enabling customers to build association with a brand becoming a trusted advisor exceeding the expectations of customers guaranteeing 100% satisfaction acting on complaints, ideas, suggestions promoting employee buy-in Evaluation: analysing own entrepreneurial skills highlighting particular strengths and weaknesses Development of entrepreneurial skills: sources of advice sources of training and development personal coaching and mentoring networks enterprise clubs Assessment This unit is centre-assessed and externally moderated. In order to achieve this unit candidates must produce a portfolio of evidence showing that they have met all of the assessment objectives. Candidates should be encouraged to present their work in formats that would be acceptable in business. Portfolios of work must be produced independently. They will need to be made available, together with witness statements and any other supporting documentation, to the OCR Visiting Moderator when required. Centres must confirm to OCR that the evidence produced by candidates is authentic. An OCR Centre Authentication Form is provided in the Centre Handbook and includes a declaration for assessors to sign. It is a requirement of the QCA Common Criteria for all Qualifications that proof of authentication is received. 2 OCR Level 3 Nationals in Business
3 Assessment Objectives 2 to 6 are based on the planning of an entrepreneurial activity by the candidate. However, candidates could address appropriate assessment objectives by taking part in an entrepreneurial activity as an individual or as part of a group. Guidance on assessment and evidence requirements Assessment Objectives 2 to 6 are based on the candidates planning of an enterprise activity. The unit will enable candidates to recognise the skills, qualities and characteristics of successful entrepreneurs and evaluate their own personal potential as an entrepreneur. If the candidates undertake an enterprise activity, it will not be assessed within this unit. For Assessment Objective 1 candidates must explain with examples the skills, qualities and characteristics of successful entrepreneurs, making reference to knowledge, understanding and skills. For Assessment Objective 2 candidates must work individually. They need to consider a range of possible enterprise activities. They then need to identify one of the chosen activities and describe the stages involved in the development of this new idea, making reference to the knowledge, understanding and skills. For Assessment Objective 3 candidates must describe the different types of finance available as outlined in the knowledge, understanding and skills. They must then explain which source of finance best meets the requirements for the new idea. Candidates need to explain the process an entrepreneur would have to go through in order to secure finance. They need to describe how and why a business plan is produced. For Assessment Objective 4 candidates must conduct research and then explain, using examples, the methods used by entrepreneurs to attract customers as outlined in the knowledge, understanding and skills. For Assessment Objective 5 candidates must conduct research and then explain, using examples, how entrepreneurs value their customers and build their loyalty as outlined in the knowledge, understanding and skills. For Assessment Objective 6 candidates must evaluate their own personal potential as an entrepreneur. They must analyse their own entrepreneurial skills, highlighting particular strengths and weaknesses. The candidate must then recommend how these skills could be developed as outlined in the knowledge, understanding and skills. Skills and qualities are probably best highlighted through real-life proven entrepreneurs such as Richard Branson, Anita Roddick, Bill Gates, Ray Kroc and Walt Disney. Candidates should be encouraged to research some of these for themselves and undertake group discussions and/or presentations on the entrepreneurial skills demonstrated by these individuals. Candidates will also need to be provided with a variety of tests, questionnaires or perceptionnaires devised to highlight their own personal entrepreneurial skills. Any opportunity that candidates might have to see real entrepreneurship in action should be actively encouraged. Visiting speakers and company visits can inform and inspire future entrepreneurs. It is equally important that candidates consider the downside of entrepreneurship, such as why certain ideas have failed in the past, for example, DeLorean cars, Laker Airways, Sinclair C5. This will help them when they have to evaluate their own success or failure. There is a clear differentiation in this unit between the skills required to be part of a team at an operative/administrational level, and those required to be entrepreneurial. It is therefore important that centres enable candidates to experience the elements that make entrepreneurialism distinct from more traditional management roles such as: OCR Level 3 Nationals in Business 3
4 the degree of risk (personal/financial) the breadth of involvement in the activity the greater degree of leadership/responsibility to make decisions (owner/manager rather than corporate manager) the need to persuade financial backers to support proposed activities the importance of team/employee buy-in. Assessment of this unit is likely to be in the form of 2 assignments. Assessment Objective 1 requires an investigation and review of entrepreneurs and their skills and qualities. The remaining assessment objectives require an enterprise activity and a range of evaluations to be undertaken. The venture therefore does not have to be based on an idea which is immediately practical for the candidates. Candidates could be encouraged to identify the kind of products or markets that proven entrepreneurs have tapped into and classify them as old (but reinvented), completely new or adapted to fill a niche or gap. Entrepreneurial opportunities could fit into the following categories (not an exhaustive list): Internet (web site design, marketing, games, travel and leisure products) Training and professional development (on-site computer training, image consultants, video-conferencing organisers) Fitness and health (healthier foods, holistic healing, personal trainer) Indulgence goods (gourmet food delivery, luxury ice creams, speciality coffee and teas, flowers, executive toys, aromatherapy) Care services for children or the elderly (senior travel club, child-care centres or camps) Children s products and services (child safety, organic foods, children s interior design and furniture, educational toys or games) Ethnic products (speciality cosmetics, hair care products/salons, ethnic food store or mailorder) One-of-a-kind retail outlets (clothing, wood carvings, jewellery, bakeries, cafes, speciality shoes). Candidates should be encouraged to consider a wide variety of potential ideas before limiting their final choice. In terms of finance, market research, motivating staff and customer needs for the enterprise activity, it should be emphasised that entrepreneurs do not always take the tried and tested route. Candidates should undertake the entrepreneurial activity as an individual but it is likely that work will be discussed with others and guidance and advice obtained. Candidates would be expected to provide an individual portfolio containing all individual work as well as records and notes of support and guidance obtained from other students, tutors and external agencies. 4 OCR Level 3 Nationals in Business
5 Signposting to Key Skills The unit contains opportunities for developing the Key Skill, and possibly for generating portfolio evidence, if teaching and learning is focused on that aim. Key Skill reference Key Skill reference Key Skill reference C3.1a ICT3.1 N3.1 C3.1b ICT3.2 N3.3 C3.2 ICT3.3 N3.3 C3.3 Mapping to National Occupational Standards Occupational Standards Unit number Title SFEDI Business Start-up Standards Level 3 SFEDI Business Development Standards Level A2 A3 Check how successful your business idea will be Check your ability to run the business Develop your plans for the business Check your own skills CfA - Level 3 Administration 321 Provide leadership for your team (MSC) MCI Management Standards Level 3 and 4 Resources A2 C1 Manage activities to meet requirements (Level 3) Manage yourself (Level 3) This section provides suggestions of suitable resources. The list is neither prescriptive or exhaustive, and candidates should be encouraged to gather information from a variety of sources. Some suggested resources are intended for Tutor use. The resources in this section were current at the time of production. Books Allen, K (2000) Barrow, P (2001) Boulden, G (2002) Fleming, P (2003) Green, J (2002) Hall, D (2002) Hough, Karen et al (2006) Entrepreneurship For Dummies John Wiley & Sons Inc The Best Laid Business Plans Virgin Business Guides Thinking Creatively Dorling Kindersley Negotiating in a week 3rd edition Hodder & Stoughton Starting Your Own Business: How to Plan, Build and Manage How to Books Doing the Business, Boost your Company s Fortune Virgin Business Guides OCR National Level 3 Business Heinemann OCR Level 3 Nationals in Business 5
6 Jay, R (2003) Southon, M & West, C (2002) Thackray, R (2002) Marketing Plans in a Week Hodder & Stoughton The Beermat Entrepreneur FT Prentice Hall 20/20 Hindsight From starting up to successful Entrepreneur Virgin Business Guides Websites BBC Business Bized Service for students and educators on business and economics related subjects. Channel Department for Trade and Industry Small Business Information on setting up a business. The Times Resource for students and teachers. Case studies on real companies. 6 OCR Level 3 Nationals in Business
7 Grading Assessment Objective Pass Merit Distinction Assessment Objectives 2 to 6 are based on the candidates planning of an enterprise activity. The unit will enable candidates to recognise the skills, qualities and characteristics of successful entrepreneurs and evaluate their own personal potential as an entrepreneur. If the candidates undertake an enterprise activity, it will not be assessed within this unit. AO1 Provide examples of the skills, qualities and characteristics of successful entrepreneurs AO2 Demonstrate the stages involved in the development of new ideas AO3 Describe how to obtain finance for new ideas AO4 Demonstrate the methods used by entrepreneurs to attract customers Candidates will provide a basic explanation, supported by few examples based on limited research Candidates will initially produce few realistic ideas on which to base their selected enterprise activity. They give a basic description of the stages involved in the development of this new idea Candidates will describe in basic terms the different sources of finance available. Candidates will provide limited justification for the selected source of finance. They will briefly describe the reasons why and how an entrepreneur produces a business plan Candidates will briefly explain the methods used by entrepreneurs to attract customers, supported by few examples and based on limited research Candidates will provide a detailed explanation supported by a range of examples based on research examples Candidates will initially produce realistic ideas on which to base their selected enterprise. They give a detailed description of the stages involved in the development of this new idea Candidates will describe in detail the different sources of finance available. Candidates will provide justification for the selected source of finance. They will describe in detail the reasons why and how an entrepreneur produces a business plan Candidates will explain in detail the methods used by entrepreneurs to attract customers, supported by a range of examples and based on research Candidates will provide a comprehensive explanation supported by a wide range of relevant examples based on extensive research examples Candidates will initially produce realistic and workable ideas on which to base their selected enterprise. They give a comprehensive description of the stages involved in the development of this new idea Candidates will comprehensively describe the different sources of finance available. Candidates will provide full justification for the selected source of finance. They will provide a coherent description of the reasons why and how an entrepreneur produces a business plan Candidates will provide a comprehensive explanation of the methods used by entrepreneurs to attract customers, supported by a wide range of relevant examples and based on extensive research OCR Level 3 Nationals in Business 7
8 Assessment Objective AO5 Demonstrate how to value customers and build their loyalty AO6 Evaluate your personal potential as an entrepreneur and recommend how these skills could be developed Pass Merit Distinction Candidates will briefly explain how entrepreneurs value their customers and build loyalty supported by few examples and based on limited research Evaluation of their own entrepreneurial potential will be limited, with few realistic recommendations made as to how this potential could be developed Candidates will explain in detail how entrepreneurs value their customers and build loyalty supported by a range of examples and based on research Evaluation of their own entrepreneurial potential will be clear and well considered, with several recommendations made as to how this potential could be developed Candidates will provide a comprehensive explanation of how entrepreneurs value their customers and build loyalty supported by a wide range of relevant examples and based on extensive research Evaluation of their own entrepreneurial potential will be extensive and well considered, with several appropriate and realistic recommendations made as to how this potential could be developed with some suggestions on how the recommendation could be implemented 8 OCR Level 3 Nationals in Business
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