1.1 - Enterprise And Entrepreneurship Flashcards
Nature of the business, Risk and Reward and Role of the Business Enterprise
Why might new business ideas come about?
-Obsolete products and services
-Changes in technology
-Changes in what consumers want
How do new business ideas come about?
-Original ideas
-Adapting existing products/services/ideas
What are the risks when starting a business?
-Business failure
-Financial loss
-Lack of security
What are the rewards when starting a business?
-Profit
-Business Success
-Independence
What is the purpose of the business?
A business must satisfy customer needs and wants by producing goods or services.
What are the 5 ways to add value?
-Convenience
-Branding
-Design
-Quality
-USP
What skills must an entrepreneur demonstrate?
-Making business decisions
-Take risks
-Organise resources
What is the difference between a customer and consumer?
A customer purchases the product or service whereas a consumer uses the product.
What is the purpose of market research?
-to identify and understand customer needs.
-to identify gaps in the market
-to reduce risk
