1.1 Enterprise and entrepreneurship Flashcards
what is a product
anything that is capable of satisfying customers’ needs . physical products
what is a service
is an act someone carries out for someone in exchange for money
changing technology opportunities
as tech develops new business opportunities
Can improve product/service by
being fast
Products being smaller
Safer to use
product
ways technology can improve
making product or service faster
making product smaller
make product/service cheaper
the use of product or service
easier
safer to use
change in consumers needs
society is constantly changing
consumers spending their money in different ways
consumer wants needs are caused by
changes in
economy
fashion
national demographic
lifestyle
change tech
adapting existing products
making new versions in existing products
adding a new label
cheaper version of old product
what are original ideas
ideas that have not been used before
to put a product/service into production
what does obsolete mean
no longer produced or used; out of date.
risks for a small business
business failure
lack of security
financial risk
rewards for a small business
successes
independence
keeping all the profit
what is business failure
through poor cash flow
fall in sales revenu
losing out to competitors
what is financial loss
owner losing the capital they invest
this can be personal belongings if
they have unlimited liability
lack of security
not working for someone can means
no guaranteed income
sick pay
holidays
whats an example of products
cars,
washing machines
,x box consoles,
phones
what’s an example of a service
Dental treatment
cleaning
nail tech
hairdressers
business success
personal satisfaction
excellent products/service
growth
awards
recognition
profit
when revenue exceeds costs over period of time
independence
the freedom of working for themselves over working for someone else
how to risk can be reduced
market research
business plan
raise sufficient start-up finance
what makes some business riskier than others
seasonal demands e.g ice cream in small market
highly competitive market
what is a business enterprise
person/organisation,the purpose of producing goods and services to meet needs of customer
business may produce its own good/service or buy it from a supplier
production
using raw materials
labour and machinery to make a product
what is adding value
lowering variable cost
adding something that will make
customers want to pay higher prices
ways to add value
convenience
branding
unique selling point
improved quality
what is an entrepreneur
a person who own an runs their own business
what do entrepreneurs do
have an idea
take the risk
organize resources to set business up
establishes and grows it
making decisions
employ people
skills of an entrepreneur
risk taker
showing initiative
willing to take up new ventures
difference between invention and innovation
inativion ( research/development to make a product)
innovation ( products ready to sell to customers )
entrepreneur benefit to economy
creating new jobs
paying taxes to gov
exporting goods abroad
