1.1.1- enterprise and entrepreneurship Flashcards
What is an enterprise?
A business or a company
Who is an entrepreneur?
Someone who creates a business
What’s a business enterprise?
The activity of providing goods and services involving financial and commercial aspects
Consumer
Someone who buys/uses goods and services
Obsolete
Out of date
Planned obsolete
The business have made a product to last a short amount of time
What the difference between goods and services?
Good’s = they can be touched (tangible)
Services = intangible
Characteristics of an entrepreneur are?
-hard working
-smart
-innovative
Skills of an entrepreneur are?
-communication
-numeracy
-problem solving
Steps in order to have a business:
-generating an idea
-asking how the idea could have added value
-conducting market research
-drawing a business plan
-deciding on legal structure
-raising finances
How do new business ideas come about?
-changes in technology
-changes in consumer wants
-product becomes obsolete
Why do new business ideas come about?
-original ideas
-advancing an excising product
What can make a product become obsolete?
-changes in trends
-changes in technology
-changes in economy
How could a business use inventions?
This means the use an existing product and adapt it to make it better this means the business will be unique and avoid competitors
How could a business use innovations?
They make a new product that’s not on the market which will lead to the business having a product that no other competitors have.
Why would someone set up a business?
Financial motives-profit is the driving force of an entrepreneur setting up a business
Non-financial motives-they think they are capable of earning from the business
What risks does an entrepreneur take?
-financial debt
-business failure
What’s meant by adding value?
The additional features added to a product or service before offering them to costumers
How can u add value to a product?
-convenience
-branding
-quality
-unique selling point
What’s the benefit of adding value to a product?
When a good or service is made appealing to costumers, they will usually be more willing to pay more for the product or service which increases the amount of profit a business can make
What is market research?
The process of evaluating the valiability of a new product or services though conducting research
Why is market research important?
It allows a company to define its target market and get feedback from consumers about their interest in a product or services
What does finding a gap in the market mean?
When u have identified something costumers need that isn’t already on the market doesn’t exist
Why is finding a gap in the market good?
Presents businesses with opportunities to innovate and expand their reach
What’s primary research?
First handed research
Example of primary research:
-focus group
-questionnaires
-interview
-survey
What are advantages of primary research?
-the information is up to date
-no one has access to it
-easy and quick to obtain
What are disadvantages of primary research?
-expensive
-time consuming
-biased data
What’s secondary research?
Using research that already exists
Example of secondary research:
-magazine
-report
-articles
-books
What are disadvantages of secondary research?
-less exploratory (not as unique)
-may be obsolete
What are advantages of secondary research?
-low cost
-easy to access
-increase breadth of knowledge
-less time consuming
What’s quantitive research?
Focuses on numeric data and unchanging data
Example of quantitive research:
-survey research
-descriptive research
-experimental research
Advantages of quantitive research:
-fast
-focused
-scientific
-relatable
Disadvantages of quantitive research?
-less detailed pictures
-not good at capturing feelings of the costumer
What’s qualitative research?
Peoples opinions and motivations
Example of qualitative research:
Product managers use this to find out more about what customers want and need
Advantages and disadvantages of qualitative research:
-a deeper understanding on consumer needs
-feelings and opinions
Disadvantage:
-time consuming
-cant be shown on a graph
What is an entrepreneur personally liable for?
The debts of the failed business
Why is it important for some start up businesses to select private limited companies?
If they don’t they take the risk that if the business fails the entrepreneur will lose all their investment and will be stuck in debt to the bank
What causes there to be a risk of business failures?
-poor management
-poor market research
-start up costs are too high
-unexpected changes
How can a new business reduce the risk of business failure?
-finance with care- when an entrepreneurs own savings shares and retained profits are safer that Holland as the sources of finance don’t need to be paid back
-keep costs down
-advertising
List three costumer needs:
-convenience
-offers the quality expected
-right product/service
What’s meant by sampling in a market?
When market researches aim for 95 percent confidence in the results meaning that the data is correct 19 times out of 20
What’s a sample?
A group of respondents who are selected to be representatives of a new product
Advantages of samples:
-saves money
-lack of bias
-efficient
-not time consuming
Disadvantages of samples:
-if the sampling frame is large random sampling may be to impractical
-bias
-not large enough to get the whole populations data
