1.1 Enterprise and entrepreneurship Flashcards
What is business enterprise?
Business enterprise:
- Process of identifying a new business opportunity
What are 3 purposes of business enterprise?
3 purposes of business enterprise:
- Provide a good or service
- Meet customer needs
- Add Value (USP)
Why do new business ideas come about?
New business ideas:
- Changes in technology
- Changes in consumer wants
- Something becoming obsolete
What can new business ideas be?
New business ideas can be:
- Original (something new)
- Adapted (found ways to improve it)
What is an entrepreneur?
Entrepreneur:
- Creates a business
- Invests in the business
- Takes risks for a chance of reward
What must an entrepreneur do?
An entrepreneur must:
- Organise resources (right resources at right time)
- Take risks ( Business fails = money lost)
- Make business decisions ( structure, aims, who to employ)
Why do new business ideas come about?
New business ideas:
- Advances in technology
- Changes in consumer wants
- Something becoming obsolete
What are the rewards of running a business?
Rewards:
- Seeing the business succeed
- Increase in profit means more money earned, so better quality of life
- Independence (to choose direction of the business, what they do)
What is an entrepreneur?
Entrepreneur:
- Creates a business
- Invests in the business
- Takes risks for a chance of reward
Discuss the responsibilities an entrepreneur needs to fulfil in order to run a new business
Responsibilities of an entrepreneur:
- Entrepreneur needs to organise resources ( 1 )
- Meaning they need to make sure business has right things ( 1 )
- Entrepreneur also needs to be willing to take risks ( 1 )
- Meaning investing money into a business that could fail ( 1 )
- Entrepreneur needs to make business decisions ( 1 )
- Meaning deciding on the business’s aims, structure, employers ( 1 )
What are the risks of running a business?
Risks:
- Loss of money invested if business fails
- Lack of security (if money is lost when business fails, it has impact on quality of life)
- Business may fail
What are the rewards of running a business?
Rewards:
- Seeing the business succeed
- Increase in profit means more money earned, so better quality of life
- Independence (to choose direction of the business, what they do)
Explain ONE benefit of building a good brand image for a product.
Benefit of good brand image:
- Good branding image adds value ( 1 )
- This is because customers recognise brand as trustworthy ( 1 )
- So customers will be willing to spend more ( 1 )
What is e-commerce?
E-commerce:
- Using the internet
- To carry out business transactions
What is m-commerce?
M-commerce:
- Using mobile technologies
- To carry out business transactions
