Stakeholders

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Stakeholders

Stakeholders are individuals and organisations that are affected by actions, objectives and policies of a business

The main stakeholders in a business are:

Entrepreneur

Investor

Employer

Employee

Producer

Consumer

Manager

Supplier

Service Provider

Government

Local Community

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Entrepreneur

Person who spots a gap in the market

Comes up with an idea that they can turn into a business

Takes financial and personal risks when setting up a business

Hope to earn profit from their successful business idea.

E.G Elon musk spotted a gap in the performance electric vehicle market, and developed cars that were both eco-friendly and high performance, Tesla CEO worth billions.

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Investor

People or organisations that provide the entrepreneur with the capital (money) needed to establish and operate the business.

Types of Capital:

Loan Capital:

The entrepreneur takes out a loan from a lender such as a bank.

The amount of money borrowed must be repaid with interest within an agreed period of time

Grant

Money given to a business by state agencies such as the Local Enterprise Office (LEO)

The grant does not have to be repaid, as long as the receiver meets certain conditions

E.G Creating a certain number of jobs

Equity Capital

Money invested in the business by individuals or other businesses.

These investors become part owners in the firm

Entitled to a share of the company's profits, Dividends

E.G: The founders of innocent drinks received over 280k from a private investor to establish the company.

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Employer

Recruits staff to enable the organisation to carry out its business.

They are responsible for providing safe working conditions for employees

Responsible for paying agree wage/salary for work done

Wage vs Salary

Wage - Money earned based on hours worked. Centre staff stack shelves for wages

Salary - fixed payment, regardless of hours worked. E.G: Aer Lingus pilots fly planes for a salary

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Employee

Recruited by the employer to work in the business

In return for a wage/salary

Have skill and qualifications needed to operate the business successfully.

E.G: Google employs many different kinds of employees, like administrative staff, engineers and software developers

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Producer

Takes raw materials and transforms them during the manufacturing process

Creates finished products

E.G: Butlers Chocolates uses milk, coco, sugar and other raw ingredients and transforms them into chocolates.

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Consumer

People who buy goods and service for their own personal use

Entrepreneur uses market research to find out consumers' likes and dislikes.

This ensures that consumers can buy goods and services that satisfy their needs.

E.G:

People who buy package holidays

People who buy concert or cinema tickets

People who buy biscuits

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Manager

Responsible for the day-to-day running of the business

Ensures firms achieves its goals

Uses leadership and communication skills to manage employees and interact with other stakeholders

E.G:

The virgin group operates in a number of industries including travel and telecommunications. It uses experienced, well-paid managers to run these companies and ensure that the virgin group's objectives are achieved

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Supplier

Suppliers are firms that provide raw materials to the business

The supplier provides raw materials needed by the business to fullfil its orders.

E.G: Suppliers from countries such as Honduras and Costa Rica provide Innocent drinks with the fruits needed to make their juices and smoothies