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What is entrepreneurship?
Puka Secondary School
Models of entrepreneurship and volunteering
Types of enterprisingness
Initiative – personal quality
 Entrepreneurship – process of detecting,
valuing and putting options into practice
 Business – actions by the law
 Social-focused entrepreneurship

Types of organization and enteprises
FIE / self-employed entrepreneur
 OÜ / limited-liability company (LLC)
 TÜ / general partnership
 AS / joint-stock company (Ltd)
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Non-profit entrepreneurship
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Social-focused entrepreneurship
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Involve problematic groups
Financing the underprivileged people
Prioritize preservation of environment
Non-profit entrepreneurship

Entrepreneurship accomplished by NPO
(nonprofit organization)
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Selling products and services and/or other
business activities to finance goals; enterprises
that do not aim to make profit
Company
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Employment of people on the streets
Using raw material from local area not
considering price
Using nature preserving materials as cheaper
alternative
Non-profit entrepreneurship

Foundation
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Organize events with specific purpose (dance
and singing festivals)
Co-operative

Fulfill services for the benefit of their members
(apartment association, consumer assotiation)
Starting an enterprise (possibilities and risks)
Why?
 What?
 Capacity?
 Expenses?
 Risk factors?
 Target?
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Business plan
Capital

Resources
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Money
Buildings / facilities
Machinery /equipment
Technology
Human resources
Social capital
How?
Plan
 Location
 Type of enterprise (licence,registration)
 Resources (employees, premises,
contracts)
 Starting
 Accounting, marketing, development,
market survey (taxes, laws, accounting,
health policy, competition)

Responsibility irrespective of type and magnitude
of the enterprise
Milton Friedman:
... Enterprise has
one and only social
responsibility - it is
to use its resources
and take care of
increasing income

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Peter Ferdinand
Drucker:
“Companies have
three
responsibilities:
 1) make a profit,
 2) satify
employees, and
 3) be socially
responsible.”
Responsibility

Unlimited responsibility:
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Type of corporation where one or n* juristic
person and/or self-employed person are
involved and one of them has unlimited
responsibility towards trading company
Limits on minimum capital are not enforced
NB! individual enterprise (limited company or joint
adventure) the owner guarantees with his
property – creditor can claim against the
person or his assets
Responsibility

Limited responsibility

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No one is responsible ex lege. Responsibility is
limited with assets of company
More than one partner – Ltd, LLC, SE
Wagework versus enterprise

An entrepreneur can
work and earn as
much he is able to

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Buys labour power of
the employee
Risk – failure of
business (bankrupt)
Is a master of his time,
assets, income

An employee works 8
hours a day, does
certain tasks, gets
certain payment

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Sells his labour power
Risk – loss of job
(dismissing / releasing)
Has given his time,
manpower, income to
the employer
Entrepreneur
 Personal
qualities
Courage
Creativity
Curiosity
Determination
Discipline
Enthusiasm
Flexibility
Honesty
Patience
Responsibility
Entrepreneur

Skills
Business skill
Communication skill
Computer skill
Decision making skill
Problem solving skill
Mathematical skill
Organizational skill
People skills
Thank
you for your attention