1.1 Flashcards
What is business enterprise?
The process of identifying new business opportunities, and then taking advantage of them
What two main things could a business enterprise ivolve?
Starting a new business, or helping an existing one to expand by coming up with new ideas
What does all business activity need to have?
A purpose
What could a business purpose be?
- To provide a good or service
- Meet customers needs
- Add value to an existing product
What are ways to add value to a product?
- make a product more convenient for a customer
- Build a good brand image for a product
- Improve the products design and quality
- Give the product a unique selling point (USP). This i some feature that makes it different from its competitors, which makes it an original product
Why is building a good brand image important?
Customers will be more likely to spend money on the product as they’ll recognise the brand and know that it’s trustworthy and desirable
The world is a changing place so what do businesses have to be WHAT to adapt to these changes?
Dynamic
What are 2 reasons for new business ideas coming around?
- Changes in technology
- products becoming obsolete
What two thing can a new business idea be?
- Completely original
- An adaptation of an existing product or idea
What 2 Rs come from getting out of a business?
Risk & reward
What do entrepreneurs do to business opportunities?
Take advantage of them
What are 3 things an entrepreneur must be able to do to run a successful business?
- Organise resources
- Take risks
- Make business decisions
What are 3 risks to starting a new business?
- Financial loss
- lack of security
- Business failure
What are 3 rewards to starting a new business?
- Business success
- Financial reward
- Independence
What is a competitive advantage?
A feature of a business that helps it to succeed against rivals
