1.1.1 Enterprise And Entrepreneurship 🏭 Flashcards
What does changes in technology lead to your product becoming?
- Smaller
- Faster
- Safer
- Easier to use
What may lead to changes in consumer needs ?
Changes in fashion
Changes in lifestyle
Changes in demographics
Changes in technology
Changes in economy
What is obsolescence?
When a product/ service goes out of date and is no longer relevant within the market
What are the three business rewards ?
Business success- recognition, awards
Profit- money left over after costs have been made
Independence- being your own boss having more freedom within your job
What are the 3 risks of having a business ?
1.Business failure- poor cash flow , low sales can’t compete with competitors
- Financial insecurity- no pay when your not working and unlimited liability
- Lack of security- no pay when sick no holiday pay no guaranteed income
How can risk be reduced?
- Carry out market reserves
- Business plan
- Raise a source of finance
What are some businesses riskier than others ?
- Small market
- Highly competitive market
- Owner having little knowledge
- Seasonal demand
How can businesses add value?
More convenience
Higher quality
USP
Branding
What are the benefits of adding value ?
Make more sales revenue per item - make more profit - costs paid off quicker - business gains more market share - Gains competitiveness quickly to have a higher chance of success
What is mix and match?
When businesses add a range of features to add value - successful products are able to keep costs down as they add new features and benefits
What are the three skills of an entrepreneur?
- Risk taking
- Showing initiative
- Willingness to undertake a new venture
What is the entrepreneurs process of creating a new product?
- Research and development-> invention-> potential products + processes ~> innovation ~> product ready to sell to customers
How do businesses help the economy?
Pay tax
Employ people + generate jobs- have money to pay tax
Export goods
Sell products that meet consumers needs
