CH4Mindmap
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π‘ Enterprise and the Entrepreneur
Core Definitions
Entrepreneur
Spots a gap in the market and uses innovation to create a new good or service in order to make a profit, while taking on the personal and financial risk of failure.
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Enterprise vs Management
Enterprise: Starting something new β any innovative attempt involving risk to create something that did not previously exist.
Management: Achieving goals with and through people β running an existing operation effectively.
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Management: Achieving goals with and through people β running an existing operation effectively.
Types of Enterprise
Personal: Taking a course to develop a new skill.
Business: Launching a new product or service.
Government: Changing a public service e.g. Dublin Bus routes.
Social: Organising a fundraising event.
School: Starting a green school initiative.
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Business: Launching a new product or service.
Government: Changing a public service e.g. Dublin Bus routes.
Social: Organising a fundraising event.
School: Starting a green school initiative.
7 Reasons to Become an Entrepreneur
To Earn More Income
Not limited to a set wage or salary β the entrepreneur keeps all profits made by the business. As the business grows, earning potential grows considerably.
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To Be Their Own Boss
Takes responsibility and control over decisions; self-directed without having to answer to an employer or manager.
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Limited Career Path
May be limited in potential for growth within their current profession, so sets up their own business instead.
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See a Gap in the Market
Capitalises on an opportunity they believe could work and that others have not yet spotted.
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Government Support
Grants and training available from Local Enterprise Offices (LEOs) to support businesses with fewer than 10 employees starting up in Ireland.
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Made Redundant
Job no longer needed β being made redundant may motivate an individual to change life course by setting up their own business.
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Inspired by Other Entrepreneurs
Energised and encouraged by others' success stories to take the risk of setting up their own business.
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π§ 10 Entrepreneurial Skills and Characteristics
Innovative
Creates new ideas and processes β thinks outside the box to develop new products or new versions of existing ones.
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Human Relations
Ability to communicate, energise, network and negotiate effectively with other stakeholders β building relationships and being persuasive.
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Flexible
Responds to changing environments and adapts the business accordingly β not scared to change the original concept to succeed.
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Reality Perception
Sees things how they actually are, not how they wish they were. Considers ideas realistically without emotional bias.
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Proactive
Does not wait to react β uses initiative in advance to spot and act on opportunities before being forced to by circumstances.
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Future Focused
Anticipates future trends and spots potential gaps in the market using research β always thinking ahead of competitors.
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Decisive
Acts quickly and confidently under pressure β able to weigh up pros and cons and make a decision without second-guessing.
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Risk Taking
Takes on the personal and financial risk of decisions made for the business with no guarantee of success or profits.
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Determined
Confident in their ability to persevere through difficult times β resilient and able to take corrective action when facing setbacks.
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Confident
Displays self-belief in their ability and their idea β has conviction in the business concept and the ability to make it a success.
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π¬ Intrapreneurship
Definition + 3 Benefits
Intrapreneurship
An employee within a business being innovative to create a new product or process, without taking on the personal financial risk of failure. e.g. a Google employee developed Gmail.
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Increased Sales and Profits
Creating new products or adding new USPs to existing ones generates more revenue. e.g. a Sony employee developed the PlayStation β increasing sales significantly.
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Reduce Costs
Streamlining production, reducing waste or creating a new process to reduce the cost base of the business. e.g. a Cadbury's employee developed a packaging improvement that reduced costs.
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Improved Morale
Job satisfaction increases as staff feel their input is valued β more enjoyable workplace and greater motivation. e.g. Facebook's "Like" button was developed by an employee.
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4 Methods to Promote Intrapreneurship
Allocate Resources
Give funding for R&D and reduce workload to give staff dedicated time to develop new ideas without day-to-day pressure.
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Incentivise Ideas
Offer bonuses or profit sharing to reward employees for generating new ideas β financial recognition encourages creativity.
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Use Teamwork
Brainstorming sessions, cross-departmental teams and shared responsibility to generate ideas β a matrix structure facilitates this.
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Train Staff
Provide training for managers and employees to develop new skills, confidence and creative thinking.
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2021 Short Q9
Distinguish between enterprise and management + example of enterprise in a school. (10)
βΌ
(i) Distinguish between enterprise and management. (6 marks β 3+3)
(ii) Suggest an example of enterprise in action in a school. (4 marks)
(ii) Suggest an example of enterprise in action in a school. (4 marks)
βοΈ Part (i) β Distinguish
Enterprise: Refers to any innovative attempt to start something new β creating a new product, service or process while taking on the personal and financial risk that it may fail.
Management: Refers to the ability to achieve results by working with and through people β running an existing operation effectively by planning, organising, controlling and leading a team.
βοΈ Part (ii) β Enterprise in a School
Example: A group of students set up a green school committee and launch a new initiative β e.g. a "paperless Fridays" campaign β to reduce paper usage across the school. This is enterprise because it creates something new and involves the risk that it might not be adopted successfully.
π Distinguish = show the difference directly. Key contrast: Enterprise = starting something NEW + taking on risk. Management = achieving results through people in an EXISTING operation. Use "whereas" to signal the distinction clearly.
2024 Q5(A)
Explain reasons why an individual may become an entrepreneur. (15)
βΌ
Explain reasons why an individual may become an entrepreneur. (15 marks β 3 Γ 5 (2+3))
βοΈ Suggested Answer β 3 Reasons
To Earn More Income: As an employee, a person earns a fixed wage. However, an entrepreneur keeps all profits made by the business. As the business grows, their earning potential grows considerably β there is no upper limit on what they can earn, unlike a salaried position.
To Be Their Own Boss: The entrepreneur leads a self-directed life in the business β making all key decisions without being answerable to a manager or employer. This appeals to people with a strong desire for independence and control.
Made Redundant: When a person's job is no longer required, being made redundant may motivate them to change direction. Using their redundancy payment as start-up capital, they may choose to set up their own business rather than seek employment elsewhere.
π Marking scheme: 3 Γ 5m (2+3) β name the reason (2 marks) + explain it fully (3 marks). A 15-mark question needs exactly 3 reasons.
2025 / 2024 ABQ(A) / 2021 Q5(A)
Entrepreneurial characteristics/skills β applied to a business scenario. (20)
βΌ
Outline the characteristics/skills of an entrepreneur. Apply your answer to the entrepreneur described. (20 marks β 4 Γ 5 (2+3))
βοΈ Suggested Answer β 4 Characteristics (ABQ format)
Risk Taking: Entrepreneurs take a personal and financial risk in setting up a new business with no guarantee of success. They risk investing their time and money. Apply: Reference the named entrepreneur's specific risk from the passage.
Innovative: Entrepreneurs develop new ideas or new ways of doing things β they think outside the box. Apply: Reference the specific new product/process described in the text.
Decisive: Entrepreneurs make quick and effective decisions under pressure. They weigh up the pros and cons and act confidently without second-guessing themselves. Apply: Reference the specific decision the entrepreneur made in the passage.
Future Focused: Entrepreneurs always look to the future and come up with plans to stay ahead of competitors by spotting gaps and trends. Apply: Reference how the entrepreneur identified the opportunity in the text.
π ABQ technique: Name the characteristic (2 marks) + explain what it means generally (2 marks) + apply it directly to the named entrepreneur in the text (1 mark). The direct reference to the passage earns the application mark β never write a generic answer when a business is named.
2022 Q5(C)
Explain intrapreneurship + three methods to encourage it. (20)
βΌ
(i) Explain the term intrapreneurship. (5 marks β 2+3)
(ii) Outline three methods management could use to encourage intrapreneurship. (15 marks β 3 Γ 5 (2+3))
(ii) Outline three methods management could use to encourage intrapreneurship. (15 marks β 3 Γ 5 (2+3))
βοΈ Part (i) β Intrapreneurship
Intrapreneurship: An employee within a business who engages in entrepreneurial activity β coming up with new ideas, new products or new processes for the business. Unlike an entrepreneur, the intrapreneur does not take on personal financial risk. e.g. A Google employee developed Gmail; a Facebook employee developed the "Like" button.
βοΈ Part (ii) β Three Methods
Allocate Resources: Management should make time and capital available for employees to pursue new ideas β e.g. setting aside a budget for R&D and reducing day-to-day workload to give staff dedicated creative time.
Incentivise Ideas: Offer financial rewards such as bonuses or profit sharing to employees whose ideas are implemented. Financial recognition encourages a culture of creativity and signals that new ideas are valued.
Use Teamwork: Arrange cross-departmental teams and schedule regular brainstorming sessions. A matrix organisational structure facilitates intrapreneurship by bringing together people with different expertise to collaborate.
π Definition must include all three parts: (1) employee, (2) innovative/new ideas, (3) no personal financial risk. Missing any part loses marks.
2020 Q4(C)
Explain intrapreneurship + illustrate two benefits for a business. (20)
βΌ
(i) Explain, using an example, the term intrapreneurship. (8 marks β 3+2+3)
(ii) Illustrate two benefits of intrapreneurship for a business. (12 marks β 2 Γ 6 (2+2+2))
(ii) Illustrate two benefits of intrapreneurship for a business. (12 marks β 2 Γ 6 (2+2+2))
βοΈ Part (i) β Definition + Example
Intrapreneurship: An employee within a business who engages in entrepreneurial activity β coming up with new ideas within the business in which they are employed, without taking on personal financial risk.
Example: A worker at Google came up with the idea for Gmail. A Sony employee developed the concept for the PlayStation.
Example: A worker at Google came up with the idea for Gmail. A Sony employee developed the concept for the PlayStation.
βοΈ Part (ii) β Two Benefits (Illustrate = explain + example)
Increased Sales and Profits: Intrapreneurship results in new products being developed, creating new revenue streams and growing the business.
Example: A Sony employee came up with the idea for the PlayStation β dramatically increasing Sony's sales and profits.
Example: A Sony employee came up with the idea for the PlayStation β dramatically increasing Sony's sales and profits.
Improved Staff Morale: Where staff are offered the opportunity to be intrapreneurial, they are more productive, happier and more fulfilled. There is greater motivation and improved industrial relations.
Example: Facebook encourages intrapreneurship β an employee developed the "Like" button, creating a culture of innovation that improves staff morale and retention.
Example: Facebook encourages intrapreneurship β an employee developed the "Like" button, creating a culture of innovation that improves staff morale and retention.
π Illustrate = state + explain + example. Each benefit needs a definition/explanation AND a named real-world example. Always name a specific company and product.
The following topics are identified as 2026 must-knows for Chapter 4: Enterprise based on past paper frequency, examiner reports and the 2026 trend master sheet.
Entrepreneurial skills and characteristics β applied to a scenario π₯ Hot
The single most examined topic in Chapter 4 β appeared in 2025, 2024, 2023, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2011. Know different characteristics and keywords and apply them to the named business or entrepreneur in the question if asked. Each characteristic = 5 marks (2+3): name it + explain it + apply to the scenario.
The single most examined topic in Chapter 4 β appeared in 2025, 2024, 2023, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2011. Know different characteristics and keywords and apply them to the named business or entrepreneur in the question if asked. Each characteristic = 5 marks (2+3): name it + explain it + apply to the scenario.
Reasons to become an entrepreneur π₯ Hot
Appeared in 2024 Q5(A) and 2018 Q4(C) as long questions. Know reasons and be able to explain each in 2β3 sentences. A 15-mark question = 3 reasons Γ 5 marks (2+3).
Appeared in 2024 Q5(A) and 2018 Q4(C) as long questions. Know reasons and be able to explain each in 2β3 sentences. A 15-mark question = 3 reasons Γ 5 marks (2+3).
Enterprise vs Management β short question π Watch
Listed as a 2026 must-know. Appeared in 2021 Short Q9 and 2009 Short Q7. Know the precise one-line distinction. Enterprise = starting something new. Management = achieving goals with and through people. A school-based example of enterprise is also examinable β prepare one.
Listed as a 2026 must-know. Appeared in 2021 Short Q9 and 2009 Short Q7. Know the precise one-line distinction. Enterprise = starting something new. Management = achieving goals with and through people. A school-based example of enterprise is also examinable β prepare one.
Intrapreneurship β definition, benefits and methods π Watch
Has appeared in 2022 Q5(C), 2020 Q4(C), 2016 Q4(A), 2013 Q4(A). Know the 3-part definition (employee + innovative + no personal financial risk), the 3 benefits (increased sales, reduced costs, improved morale) and all 4 methods (Allocate Resources, Incentivise, Teamwork, Train Staff). Named company examples are essential for Illustrate questions.
Has appeared in 2022 Q5(C), 2020 Q4(C), 2016 Q4(A), 2013 Q4(A). Know the 3-part definition (employee + innovative + no personal financial risk), the 3 benefits (increased sales, reduced costs, improved morale) and all 4 methods (Allocate Resources, Incentivise, Teamwork, Train Staff). Named company examples are essential for Illustrate questions.
Contrast Entrepreneur vs Manager Possible
Appeared in 2023 Deferred Q5(A). Contrast under headings: Risk, Reward, Innovation, Responsibility. Entrepreneur takes the risk and keeps the profits; manager runs the business for a salary. Could appear in 2026 in a similar format.
Appeared in 2023 Deferred Q5(A). Contrast under headings: Risk, Reward, Innovation, Responsibility. Entrepreneur takes the risk and keeps the profits; manager runs the business for a salary. Could appear in 2026 in a similar format.
Distinguish
Enterprise vs Management
Enterprise = starting something new with personal risk. Management = achieving goals with and through people. Use "whereas" to signal the contrast directly. The school enterprise example also carries marks β prepare one.
"Enterprise refers to starting something new while taking on personal risk, whereas management refers to achieving goals with and through people in an existing operation."
Illustrate
State + Explain + Example
Illustrate means state the point, explain it, then give a named real-world example. An example alone without the explanation will not earn full marks. Named company examples are required.
Increased Sales: Sony/PlayStation. Reduced Costs: Cadbury/packaging. Improved Morale: Facebook/Like button.
Intrapreneurship
3-part definition essential
Must include all three parts: (1) employee within a business, (2) innovative/comes up with new ideas, (3) without taking on personal financial risk. Missing any part loses marks.
"An employee within a business who is innovative and comes up with new ideas or processes, without taking on the personal financial risk of failure. e.g. a Google employee developed Gmail."
Active Headings
Statement not a title word
Any heading must be an active statement that earns marks on its own. A bare title word scores zero. The keywords in your explanation earn the marks β quality over quantity.
β "Income." Β β
"To Earn More Income β the entrepreneur keeps all profits, unlike a fixed-wage employee."
Apply to Business
Reference the named business
If a business is named in the question, there are marks for referencing it directly. Link every characteristic or reason back to the named entrepreneur specifically β a generic answer will lose marks.
"[Named entrepreneur] demonstrated this characteristic by..." earns the application marks that a generic answer would miss.
Evaluate
State + Explain + Opinion
Evaluate means state, explain, then give a justified opinion on effectiveness. The opinion can be positive or negative but cannot simply repeat the explanation already given.
"In my opinion, this characteristic is particularly important because an entrepreneur who is not decisive risks losing first-mover advantage to competitors."