1.1 - Enterprise And Entrepreneurship Flashcards
What is business enterprise?
The process of identifying new business opportunities and then taking advantage of them
What can a business enterprise involve?
Starting a new business
Helping an existing business to expand
What are the possible purposes for a business?
- provide people with a good or service
- meet customer needs
- add value to a product
What is a good?
A physical item
What is a service?
An action performed by other peole to aid the customer
What are the ways a business could add value to a product?
- more convenient to get/use
- build a good brand image
- improve design/quality
- give the product a USP
What does it mean to add value to a product?
A business could find a way to improve a product
Customers are more willing to pay for it than competitors products
Why is it important to build a good brand image?
Customers will be more willing to spend money on the product as they will recognise the brand and know that it is trustworthy and desirable
What is a USP?
Unique selling point
Why is a USP important?
Gives it a feature that makes it different from competitors, which makes it an original product
The world we live in is always changing, what should businesses be able to do?
Businesses must be dynamic and adapt to the changes of the changing world
Why would people come up with new business ideas?
Changes in technology
Changes in customer wants/needs
Good or service becomes obsolete
How might changes in technology affect the need for new businesses or ideas?
For example, the invention of ipads meant lots of people came up with ideas for apps that could be used
How might customer needs/wants affect the need for new businesses or ideas?
For example, customers may become more environmentally friendly, so businesses would need to offer more environmentally friendly products
How might goods/services becoming obsolete affect the need for new businesses or ideas?
Businesses would need to come up with new ideas to replace obsolete goods/services
There are 2 types of new businesses ideas. What?
Completely original
Adaptation to an existing product
Who is an entrepreneur?
Someone who takes on the risks of enterprise activity
What must entrepreneurs be able to do if they want to run a successful business?
Organise resources
Take risks
Make business decisions
What are examples of risks within running a business?
Financial loss
Lack of security which can impact quality of life
Business failure
What are examples of rewards within running a business?
Business becoming a success
Profit - better quality of life
Independance to choose what to do in day to day
