1.1 Enterprise Flashcards
Give the definition of an entrepreneur
Someone who is willing to take risks to start a business
Why do people start their own business?
To bring in new ideas More independence Get to keep all of the profit made Don't want to be told what to do by boss To persue your own dream/idea
What qualities are required to be an Entrepreneur?
Good Skills Creativity Determination Confidence Social Skills Focused Innovative Hard Working
What is the Primary Sector?
Business that extracts from nature and supply raw materials
Give an example of a Primary Sector
Farm
What is the Secondary Sector?
Businesses that are manufacturers
Give an example of the Secondary Sector
Factories
What is the Tertiary Sector?
Businesses that provide Services
Give an example of a tertiary sector
Supermarket
What is a Social Enterprise?
An organisation that isn’t motivated by money only but also wants to provide a service to benefit the community
A Charity
How are products distributed?
Goods or Services
What is a Franchise?
The right given by one business to another to sell goods or services using its name
Give the definition of a Franchisor
Someone who sells a business to a Franchisee
Give the definition of a Franchisee
Someone who buys a business using its name as well as selling goods
What are the Advantages and Disadvantages of opening a Franchise?
Advantages:
Candidates are carefully chosen by Franchisors
Products have been approved to prevent failure (less risk)
Don’t need to invest as much money
Operating a well known business
Training is provided to start the business
Equipment is also provided
There are back up services (Advice, Loans, Insurance)
Disadvantages:
A percentage of sales and profit goes to Franchisor
Less Flexibility with products
Original Training can be long
No freedom to operate outside the Franchise agreement
Money is lost if business fails
Franchises can’t be sold without Franchisors agreement
