1.1 Enterprise and Entrepreneurship Flashcards
Dynamic nature of business:
the idea that business is ever-changing because external factors, such as technology, are always changing.
Venture capital:
risk capital provided by an investor willing to take a risk in return for a share in any later profits; the venture capital provider will take a share stake in the business.
Demand:
the number of units that customers want – and can afford – to buy.Obsolete:
Entrepreneurs:
business people who see opportunities and are willing to take risks in making them happen.
Obsolete:
a product or service with sales that have declined or come to an end as customers find something new.
Adapting existing products:
finding new products based on the original one, such as Wall’s White Chocolate Magnum.
Competitive advantage:
a feature of a business that helps it to succeed against rivals.
Original ideas:
ideas that have not been done before.
Customer needs:
the products or services people need to make life comfortable.
Customer wants:
what people choose to spend their money on, once the weekly bills have been paid.
Goods:
products that may be fresh, such as apples, or manufactured, such as Heinz Baked Beans.
Services:
providing useful ways to help people live their lives, for example shops, restaurants and hospitals.
Branding:
giving a product or service ‘personality’, with a name and logo that makes it stand out.
Unique selling point (USP):
an original feature of a product that rivals aren’t offering.
Value added:
the difference between the selling price and the cost of bought-in goods and services (the difference that creates the possibility of profit).
