1.2 - Showing enterprise Flashcards
IN GENERAL, what is an enterprise?
A word which represents the ideas and initiatives involved in starting a new business.
What is the difference between GOODS and SERVICES?
GOODS - Physical and tangible products, e.g. a car
SERVICE - Non-physical, intangible products, e.g. insurance
What is an Entrepreneur?
A person who owns and runs their own business and takes risks.
IN DETAIL, what is an enterprise?
The initial spark and idea for a business and the willingness by an individual to show initiative, take a risk and undertake a new venture.
What are 3 main enterprise skills?
- Risk-taking
- Showing initiative
- Willingness to undertake a new venture
Why is Enterprise (businesses) important?
Because new businesses create jobs and wealth in the economy.
What does the success of a business depend on (4) ?
- The ability of the owners to come up with new, unique and creative ideas.
- In order to compete
- To identify new opportunities
- To differentiate themselves from competitors.
What are 6 advantages of thinking creatively?
- Considers ‘what if?’ questions
- Unique ideas and products
- Improved customer services
- Cheaper production techniques
- Better products
What is Deliberate Creativity?
The intentional creation of new ideas through recognised and accepted techniques.
What are 5 methods of deliberate creativity?
- Creating lists
- Mind mapping / brainstorming
- Make it bigger/smaller
- Combining things together
What is BLUE SKIES thinking?
Coming up with as many ideas as possible to solve a problem.
What is LATERAL thinking?
What is an example of Lateral thinking?
Involves thinking differently to try and find new and unexpected ideas.
De Bono’s Six Thinking Hats is an example of lateral thinking.
What does the WHITE De Bono hat represent?
Facts about an idea
What does the RED De Bono hat represent?
Emotions and gut feelings about an idea
What does the BLACK De Bono hat represent?
Difficulties of the idea
What does the YELLOW De Bono hat represent?
Positive aspects of the idea
What does the GREEN DE Bono hat represent?
How to get around a problem creatively
What does a BLUE De Bono hat represent?
Thinking about what they are thinking
Why do entrepreneurs ask themselves questions (4) ?
- Helps identify business objectives
- Helps develop aspects of the business plan
- Identifies potential problems and pitfalls
- Helps make important decisions
What are 3 examples of ‘Why and Why Not?’ questions that an entrepreneur might ask themselves?
- Why do I want to start my own business?
- Why do I want to change?
- Why not set up my own website business?
What are 5 examples of ‘How? Where and When?’ questions that an entrepreneur might ask themselves?
- How do I set up the business?
- How do I build up a customer base?
- How will I research my market?
- Where can I get help and advice?
- When could I open the business?
What are 4 examples of ‘What if’ questions that an entrepreneur might ask themselves?
- What if my business loses money?
- What if my customers do not like my products?
- What if there is too much competition?
- What if I am ill for a long period of time?
What are the stages of invention and innovation?
- Research and development → INVENTION
- Potential products and processes → INNOVATION
- Products ready to sell to its customers
What are 3 reasons as to why invention and innovation is risky?
- Expensive
- Time-consuming
- Many new products fail to make it to market.
- Some businesses choose to wait to copy or ‘follow’ other business, creating ‘me too’ products.
What are PATENTS?
Right of ownership of an invention, design or process when it is registered with the government.
What is a COPYRIGHT?
Legal ownership of material such as books, music and films which prevent these being copied by others.
What are TRADE MARKS?
The logo, symbol, sign, or other features of a product or business that cannot be copied by others.
What is taking a CALCULATED RISK about?
Putting a numerical value or probability on the risk and the likelihood of it coming true.
How can a business calculate its risk?
Through MARKET RESEARCH
How can understanding the risk help a business?
It can help a business make decisions that will reduce the likelihood of a negative outcome.
What are 3 likely examples of calculated risk?
- There’s a 50:50 chance of an advert’s success
- There’s a 1 in 3 chance of a business failing
- 10% of customers will return products
Why is it that SOMETIMES, for an entrepreneur, making mistakes is beneficial?
They will become better at calculating risk.
How can risk be calculated?
By identifying and comparing UPSIDES and DOWNSIDES.
What are the 5 skills that contribute to an individual’s success?
- Planning
- Drive
- Thinking Ahead
- Determination
- Seeing opportunities
What is Planning?
Identifying a direction and plan of action for the business.
What is Drive?
Being hardworking and motivated to achieve success.
What is Thinking Ahead?
Having the foresight to identify potential problems.
What is Determination?
Being resilient when things go wrong (not giving up).
What is ‘Seeing Opportunities’ ?
Having the creativity and imagination to do things differently.
What is the mnemonic to remember the important enterprise skills?
Please Don’t Trip Down Stairs
Why are mindmaps useful?
They help an entrepreneur get their ideas down on paper, when thinking ahead, planning the business and trying to identify new opportunities.
