1.1 enterprise and entrepreneurship Flashcards
what are the reasons for a dynamic market (2)
changes in technology
changes in costumer needs
how can technology affect the products (5)
make products and services :
faster
more portable
cheaper
easier to use
safer
what may change the consumer wants and needs (5)
changes in:
fashion
economy
national demographics
lifestyle
technology
what may businesses have to invest in to keep up with dynamic markets
research and development (R&D)
market research
what is a consequence of new technology
existing products becoming obsolete
what is planned obsolescence
products that are designed to only last a short period of time so consumers are encouraged to buy new and improved versions of these products.
how do you work out the risks
probability of negative outcome occurring and the impact of the negative outcome
what are three negative outcomes from risks
business failure
financial loss
lack of security - no guaranteed income
what are the benefits of reward
business success
profit
independence
how can risk be reduced (4)
detailed market research
produce a business plan
ensure that the business is competitive
raise sufficient finance
what can make a business riskier than others (3)
seasonal demand - such as ice cream
competitive market
owner who knows very little about the product/market
what are the ways of adding value to a product? (6)
more convenience
branding
USP
better design
improved quality
greater speed or service
what is an entrepreneur
a person who owns and runs a business
how do entrepreneurs benefit the economy (4)
provide jobs
generate economic activity through consumer spending
paying tax to the government
exporting goods abroad
what are three skills of an entrepreneur
risk-taking
showing initiative
willingness to undertake a new venture
