1.1 - Enterprise and Entrepreneurship Flashcards
What is the private sector?
Businesses owned by private individuals who make their income from selling goods or services, usually for profit.
Why do changes in what customers want cause new business ideas?
Many people these days are concerned about the environment, so many businesses sell environmentally friendly products.
What are the risks of a business?
- Business failure
- Financial loss
- Lack of security
What are consumer durables?
Big ticket items/ white goods. Things that you buy for a considerable amount of time at home. Cars, fridges, washing machines, etc.
What is capital equipment?
Machines for use in companies
How do you create product differentiation?
- Strong brand image
- Unique selling point
- competitive factors
Why do products/services becoming obsolete cause new business ideas?
When a product is no longer used, it is usually because it has become obsolete and has been replaced. Business owners have to come up with new ideas so that their business survives.
How do new business ideas come about?
- Original ideas - Invention
- Adapting existing products/services - Innovation
What is the role of business enterprise?
- to produce goods or services
- to meet customer needs
- to add value: convenience, branding, quality, design, unique selling points.
How does Business plans help an owner?
Drawing up a business plan forces owners to think about their aims, the competition they will face, their financial needs and their likely profits. Business plans help to reduce risk and reassure stakeholders, such as banks.
What are FMCGs?
Fast moving consumer goods - thing that you buy use up and buy again.
What is the public sector?
Businesses owned by the government who provide the good or service on behalf of the people for free or at a reduced price.
What are the reasons for starting a business?
Making a profit.
The satisfaction that comes from setting up a successful business and being independent.
Being able to make a difference by offering a service to the community such as a charity shop or hospice.
What are the rewards of a business?
- Business success
- Profit
- Independence
Why do changes in technology cause new business ideas?
The invention of tablets meant lots of people came up with ideas for apps that could be used on those devices
What is a business plan?
A business plan is a report by a new or existing business that contains all of its research findings and explains why the firm hopes to succeed. A business plan includes the results of market research and competitor analysis. Analysis is when a business interprets information.
What are raw materials and componenets?
Materials that are assembled into finished goods
What does an Entrepreneur have to do?
- Take risks. Setting up a new business is risky. Even if the entrepreneur has carefully researched the market, there’s always a chance that customers may reject the product and that a loss will be made.
- Show initiative and ‘make things happen’. Successful entrepreneurs have the drive, determination and energy to overcome hurdles and launch new businesses.
- Undertake new ventures. An entrepreneur has to have the imagination to spot business opportunities that will fill gaps in the market.
What is a business?
Any group or organisation that makes products to be bought and sold or provides services to customers.
