- Eventually, entrepreneurs will need to hire staff to help run the business, therefore they become
- An entrepreneur may not have the skills needed to run the business and therefore he/she will need to hire managers and experts e.g. a restaurant owner may need to hire a manager and a chef .
- Employers have to bear many costs
(a) wages and the cost of preparing this weekly
(b) PRSI- employees and employers contribute to this but the employers contribution is greater
(c) Insurance premiums
(d) Workplace facilities e.g. canteen, parking, toilets.
- An investor is a person who gives the finance (capital) required for a business in exchange for a return
in that business. This is called equity finance.
- E.g. A common way of investing money is to buy shares. The investor becomes a shareholder and shares in its profits by receiving a dividend.
- The investor can lend money to the entrepreneur but his must be paid back. This is called debt equity.
- E.g. Bank of Ireland loaned Brody Sweeney £21,000 to open the first O’ Briens sandwich bar.
- Those setting up new businesses are called entrepreneurs
- They must take the initiative (identify a gap in the market) to set up a new good or service and bring
together the factors of production land, labour and capital to set up a business.
- Entrepreneurs take the risks involved when setting up a business
- The reward is profit
- e.g. John Pemberton a pharmacist invented the famous soft drink Coca Cola (1886)