1.1 Enterprise & Entrepreneurship Flashcards
WHY do new business ideas come about ?
- Changes in technology
- Changes in customer demand
- Products becoming obsolete
HOW do new business ideas come about ?
- original ideas
- adapting existing products
what dose an entrepreneur have to do to start a business
Have a business idea
able to spot an opportunity in the market
what are the risks of starting a business
business failure
financial loss
lack of security
what are the rewards of staring a business
business success
profit
independence
what is the purpose of business activity
it is to take inputs and add value to them and create products which meet customer needs
what dose adding value do to a business
It differentiates products from the competition
creates a unique selling point
increases customer satisfaction
what are the 5 ways a business can add value to their products
- convince
- branding
- quality
- design
- unique selling point
what is the role / characteristics of a successful entrepreneur
- willing and able to create a business
- able to take risks
- Make business decisions
- Organise resources
what types of technology are used in businesses
digital communication
digital payment methods
Outline one reason why products or services may become obsolete
technology advancements e.g. iPod being taken over by iPhones
Explain one reason why an entrepreneur may adapt an existing product to come up with a new business idea.
To meet changing customer needs (1). By modifying a product to align with current trends, the entrepreneur can attract a new customer base (1), potentially increasing sales and market share (1).
Discuss how changes in technology create opportunities for entrepreneurs.(6)
pro - new business opportunity in the market, convenience and efficiency increase due to advancements
con - increase in competition if new technology becomes widely available
Explain one way customer needs may change over time.
Customer needs may change due to lifestyle changes
change with social trends
Explain one financial risk involved in starting a new business.
The entrepreneur may lose their investment (1). If the business fails to attract customers (1), they may not earn back their start-up costs (1).
Discuss the importance of understanding risk before starting a business.(6)
yes - make a business plan and market research
no - better business understanding of the business it self
Discuss whether being able to take risks is the most important skill for an entrepreneur.
Risk-taking is vital for starting and growing a business. Without it, an entrepreneur may miss opportunities.
However, other skills like resilience, planning, and creativity are also essential.
Justify whether adding value is more important than reducing costs for a new business.
Adding value helps differentiate a product, justify higher prices, and attract loyal customers.
However, reducing costs helps maintain profit margins, especially in the early stages.
