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What Is Enterprise In Business?

what is enterprise in business

An enterprise in business is a for-profit business that is started by an entrepreneur. Enterprise as a term in business refers to business operations that take on risk for a reward in the future. Enterprise companies and businesses take on financial risks to make a profit – it’s where the old saying “you’ve got to spend money to make money” comes from in the first place. Keen entrepreneurs setting up an enterprise company or business are what makes the business world go round.

Below we’ll examine what an enterprise business is a little more closely, before exploring how you can bring a little more enterprise into your business today.

What Is An Enterprise Business?

An enterprise business is a business with unlimited liability – that is to say, the business owner is fully responsible for the risks they take and if things go wrong, they’ll have to make it right. Enterprise businesses take on huge financial risks to make a profit, so entrepreneurs are so closely linked with businesses of this nature.

If you start a new business, invest in a new product or service, or even just take a step up in your current business, then you are already embracing these enterprising qualities.

The qualities of enterprise are so integral to business more generally. By embracing enterprise as a business owner you:

  • more freely generate business ideas
  • are more willing to create businesses with more complex structures to achieve your goals
  • have a knack for creating a detailed business plan others might think is risky
  • are driven by data analytics that measure business success and growth
  • aren’t afraid to enter the market to compete against large businesses and other businesses with similar products and services because you’re confident you can do it best
  • embrace enterprise software to further business activity

 

Why Is Enterprise Important?

Without an enterprise business, or at least an enterprising business owner, businesses don’t grow easily. Success in business is so often linked to those willing to take bigger risks for bigger rewards.

Enterprising business owners don’t just come up with brilliant ideas, they execute those ideas brilliantly, too. Their business plans are fully aligned with their goals, and they’re willing to evaluate their business regularly to ensure future growth and further success.

Enterprise can increase profit at an already established business, help people launch a new business in new markets, and even push individuals to become self employed and take on new challenges. The right enterprising attitude is the key to all business success.

Example Of Enterprise In Business

Enterprise is linked so closely to everything in business. It’s what drives people to new business ownership, and it’s what continues business owners on the path to growth.

Enterprise At StartupYou can display enterprise when your business is just starting out by; having the courage to take a risk with a new business, managing those risks to meet your business goals, researching your target audience to ensure your business meets their needs, and being willing to be competitive in business.
Enterprise Within A BusinessYou can display enterprise within an established business by; developing new products and services, expanding your target audience, moving into new markets, taking your offerings overseas, and investing in new technology.

What Are The Qualities Of A Good Entrepreneur?

Being an entrepreneur is the key to being enterprising in business. If you want to embrace that enterprising spirit more as a business owner, here are some of the key qualities of entrepreneurial business owners:

Ability To Identify Opportunities

Keeping an eye on the markets your competitors are moving into and products and services that are being offered elsewhere is the key to spotting opportunities others have missed, and making the most of it. Many businesses become successful when their owner has an eye for opportunity.

Creativity

Creativity is key. Creating new ideas, coming up with a new angle, creating a marketing strategy that leaves your competitors in the dust – being able to create a business with a unique selling point and driving that message home to customers helps build a successful business enterprise.

Ability To Take Risks

Being an entrepreneur is not for the risk averse. Enterprise in business is all about taking risks and having the courage to step out in confidence into a new business venture or idea, knowing that you’ve done the research and those risks are managed, and you’re confident in your ability to get a large reward at the end of it all.

Resilience

Things will go wrong in business. Being able to bounce back and try a new angle is the key to success as an entrepreneurial business owner.

Adaptability

This links with resilience, because when things don’t go quite to plan, you have to change tactic. Business landscapes shift daily – updating your plan to ensure success is key.

Determination

You already have determination in spades if you’re a business owner, but to take it to the next level of enterprise, you have to push through all doubt and outwork your competitors. Let your determination drive you and your business to success.

Ability To Work Under Pressure

Few professions face sustained pressure as much as an entrepreneur whose sole proprietorship makes them individually responsible for their business success. Ensure you can stay calm under pressure and think clearly, and you’ll surely be a business success story.

Organisation

You should plan every move in business. Organise your business so any commercial activities you undertake can be well thought out. This helps every business move you make move you closer to your ultimate business goal.

enterprise in business

What Are The Benefits Of Enterprise?

Having an enterprising spirit in business is not going to be easy. It comes with risks and stress and pressurised scenarios that can really take it’s toll.

But remember why you’re doing it:

The Ability To Be Your Own Boss

Being in charge of your own schedule and working for something you truly believe in is a huge reward for those willing to take risks and become a business owner that’s solely responsible for their success.

The Chance To Make A Difference

You can create a product or service that changes the world. You can solve problems, create new ideas, and have a positive influence on the world with what your business offers. You’re in charge of your business’ influence on the world, and you can make it a positive one.

The Opportunity To Be Creative

Entrepreneurial people are creative people by their very nature. If you want the opportunity to flex that creativity of yours, you can do so as an entrepreneur.

The Opportunity To Make Money

Plenty of people are driven by making money, and you won’t make as much money working for someone else as you will as an entrepreneurial business owner.

The Chance To Have A Flexible Lifestyle

You’re in charge of every aspect of your life as an entrepreneur – from social to home, family to work – you set your schedule and priorities as a business owner.

The Opportunity To Travel

Being able to see the world is another major benefit. When you make your business a success, you might be flying out to all sorts of wonderful locations to grow your business even further.

What Are The Disadvantages Of Enterprise?

Of course, setting up an enterprising business will bring certain challenges:

Risk Of Failure

You’ll always run the risk of failure as an entrepreneur. If your business doesn’t become a resounding success, how will you react?

Stress

Stress is common among entrepreneurs. You have to be prepared for this high pressure situation and ensure you’re looking after yourself properly to balance your business and health in the right way.

Need For Investment

Raising capital as a business owner when just starting out will usually mean spending a lot of your own money. This can be scary for new business owners, and the need for investment doesn’t stop there. You will inevitably have to rely on other businesses or investors to help make yours a success.

Lack Of Job Security

If things were to go wrong for your new business, you might not be making any money. A contingency plan is always necessary, no matter how large or small your business is.

Need For Hard Work

Success won’t come overnight. It will take months, if not years, of dedication to your business to make it a success. That could mean extra hours and outworking those around you, and it can be incredibly hard work.

entrepreneur opening business

How To Become An Entrepreneur

If you haven’t yet started your own business, then here are the steps you’ll need to become an entrepreneur and put enterprise at the heart of your business.

1. Come Up With A Business Idea

Every successful business starts with a successful idea. Take that idea and test it – make sure it’s something your target market is actually interested in. Whatever product or service you might offer, it has to be something that customers desire. It’s also good to test out some of your competitors’ products and services at this stage to see what they have to offer, too.

2. Write A Business Plan

After testing your idea and building some confidence in it, it’s time to put a plan together – a document outlining your plan for your business, its goals, strategy, and marketing plans. You can find some online templates if you’re unsure what should be included, or else you can work with professionals to help get the ball rolling.

3. Raise Funds

Creating a plan for your business is like drawing up plans for a new build property. When you want to start building it, you’ll need money. You can self fund your business, crowdfund it, seek business loans or work with friends and family – whatever you decide to do, you’ll have to raise funds for your business.

4. Start Your Business

Every small business has to start somewhere, and now you have a plan and the money to back it up, it’s time to dive in. Build a website, register as a business owner with HMRC, secure a space if you aren’t working from home, and look at all the relevant permits or rules and regulations you’ll need to acquire and adhere to. Ensuring your business is fully compliant is the first step in turning your small business into a successful large scale organisation later down the line.

5. Promote Your Venture

Once you’re set up, you’ll need to promote the business with marketing campaigns that capture your audience’s attention. Whether through digital marketing, social media, or more traditional advertising campaigns, you have to start spreading the word about your business so your customers come to you.

Types Of Enterprise

There are three main types of business enterprise in the UK:

  • Sole trader
  • Partnerships
  • Limited companies

 

Knowing what each one means and their pros and cons is the key to making a success of your business and choosing the right one for you.

Sole Trader

By far, setting up as a sole trader is the most popular option for new business owners in the UK. Sole traders enjoy full control of their business as a sole proprietorship, but you have complete liability, meaning your personal assets are at stake if your business fails and you end up owing money, rather than earning it.

Partnerships

Partnerships are another popular option, though not quite as popular as sole traders – business operations and setup are very similar here, but instead of there being only one interested party in the business, there are two or more who have gone into business together. With greater support, partnerships can be a great option for business owners, but if things go wrong then all parties are still responsible for business debts and relationships may turn sour.

Limited Company

Limited companies are more complex structures and involve shareholders who are a separate legal entity to business owners and are not liable if things go wrong. However, there are far tighter regulations for businesses operating as limited companies and more costs involved when you factor in corporation tax, etc.

In Summary

An enterprising business is one that takes managed risks, with confidence in their product or service, meaning big rewards in the end. Almost every big business in the UK can be described as enterprising for their innovative ideas, determination, and willingness to risk.

Use the advice laid out today and pursue a life as an entrepreneur if you think you have what it takes to create an enterprise in business.

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