• What is an enterprise:
  Meeting customer needs by identifying gaps in the market.
• Being involved with goods, services or both.
• Identifying and managing competitors.
• Attracting and retaining customers.
• Reasons why some enterprises fail.

Types and characteristics of SMEs:

• Size of SMEs; micro, small and medium.
• Characteristics of SMEs; ownership type, employees, physical or online location.
  
  The purpose of enterprises:
• Aims such as making a profit, surviving, expanding, maximising sales, being environmentally friendly or ethical etc.
• Social and political pressures to influence consideration of wider ethical responsibilities.
• Range of the types of products and services provided by enterprises, e.g. cleaning,
  fitness instruction, IT consultancies, financial consultancies, selling products,
  for example a food stall, newsagent, artists selling work online etc.

Entrepreneurs:

• Reasons for starting own enterprise.
• Characteristics of entrepreneurs.
• Skills for success: knowledge of industry/sector, technical skills, interpersonal
  communication skills etc.

Customer needs:

• The importance of anticipating and identifying customer needs.
• Identifying customer expectations.
• After-sales service.
• The ways in which different products can be linked to different kinds of customers according to age, gender, income, lifestyle and location.

Using market research to understand customers:

• Qualitative and Quantitative research.
• Primary and Secondary research.
• Types of primary research, e.g. questionnaires, visits or observation, interviews or focus groups, surveys.
• Sources of secondary research, e.g. online research, internet searches, websites, company materials, market reports, government reports.

Understanding competitors:

• The main features which make products competitive; price, quality, availability, unique features and selling points (USP).
• Identifying competitors.
• How products stand out from similar products in the market.

Internal factors:

• Factors within the control of the enterprise that can impact positively or negatively on costs.  For example; understanding the market, keeping customers satisfied, effective planning and financing, marketing and promoting the enterprise, unforeseen human resources costs etc.

External factors:

• Factors outside the control of the enterprise that can impact positively or negatively on costs.  For example; changes in the cost of energy, raw materials, borrowing, premises, changes in costs of marketing or selling, governmental changes etc.
• Factors outside the control of the enterprise that can impact positively or negatively on
• Revenues.  For example; competitors, consumer confidence in the economy, changing consumer behaviour, changes in consumer legislation, sales and labelling of products the misuse of information etc.

Situational analysis:

• SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis.
• PEST (Political, Economic, Social and Technological) analysis.

Measuring the success of an SME:

• Measures of success of SMEs; surviving, breaking even, making a profit, meeting customer needs etc.
• Reasons for the success of SMEs; skills, hard work, determination, resilience and the ability of the entrepreneur, ability to develop/motivate/train employees, level of customer service/satisfaction and the ability to meet customer needs, years of experience operating in this or similar markets.
• Methods of measuring success; surviving, making a living, sales volume/value, market share, profit, customer satisfaction/reputation etc.

Generating ideas for a micro-enterprise activity:

• Generate appropriate enterprise ideas and choose one idea for a realistic micro-enterprise.
• Ideas could involve; innovation of products/services, provision of products/services in new contexts, provision of products/services to new markets etc.
• Consideration of factors such as; resources available, financial forecasts, costing and pricing, methods of communication and promotion, potential customers etc.
• A skills audit by learners, to consider; leadership, personal and communication skills required, technical and practical skills required etc.

Plan for a micro-enterprise activity

• Create an implementation plan for the chosen enterprise idea.
• Aims of the micro-enterprise; financial aims, non-financial aims, and social aims.
• Product or service to be sold, including; features, benefits and unique selling points, selling price, cost, competitors etc.
• Identifying the target market; market segment, appeal to target market, how product or service will reach market, establishing and sustaining sales to the target customers etc.
• Methods of communication with the customer; selection of promotional methods, cost effectiveness, design of promotional materials etc.
• Resources required ; physical resources, financial resources, human resources, etc.
• Risk assessment and contingency plans; lack of skills, competitors and their actions, unexpected costs of production, sourcing resources, quality control issues, lack of customer interest etc.

Pitching a micro-enterprise activity

• Pitching: presenting key elements of a business plan logically.

Presenting a business pitch

• Presentation skills:

o professional behaviour and conduct of presenter

o positive attitude

o well-rehearsed and prepared

o considerate of the needs and interests of the audience

o use of visual aids, e.g. computer projection/slideshow with speaker notes,

handouts for audience, clarity and legibility of text, impact of graphics and images.

• Communication skills:

o body language, gestures and eye contact

o language and tone, pace, volume and projection

o use of business terminology

o listening, handling questions and formulating appropriate responses.

Using feedback and review to identify possible changes to the pitch

• Receive feedback from audience on:

o the business content of the pitch

o the presentation and communication skills demonstrated.

• Reviewing plan and personal performance, reflecting on feedback gathered from others:

o what went well, e.g. clear synopsis of plan, demonstration of skills

o what went less well or did not go to plan, e.g. not clearly explaining plan,

lack of presentation and communication skills.

• Recommending improvements:

o to the contents of the plan

o to own performance.