business activity Flashcards
what is a meant by business enterprise
the formation of a new service or development of a new good or service to be introduced to he market
what is a entrepreneur and what are they responsible for
an entrepreneur is a person who sets up a business by taking on the financial risks in hopes hopes of making a profit
they are responsible for bringing together the other factors of production, land, labour and capital, to create a business
what are the rewards to being an entrepreneur
the potential personal and financial gains of being an entrepreneur:
be their own boss
flexible working hours
pursue an intrest
earn more money (profit)
greater work life balance
self-esteem from building something new
self satisfaction
provide employment for self and others
the potential personal and financial losses facing an entrepreneur
the potential personal and financial losses facing an entrepreneur:
low sales
financial loss of income and money invested
unexpected costs e.g. rent
loss of security
pressure on friends and family
damage to reputation if fail
may lose home
potentially long hours and stress
what are the functions of an entrepreneur
they set up a business and the survival of the business depends on their efforts
they have the idea
they take the risks
they have characteristics of an entrepreneur
they invest money into the business
they earn the profits to fund their lifestyle to further invest
why do people want to set up their own business
personal ambition - they have always wanted to do it
no work available - to get a job
be their own boss - be in control
to provide service to a local community
interest - the may be passionate about the product or service they provide
use skills learned in previous job
easy to set up - no qualifications required
what are the charachteristics of an entreprenure
risk taker
determined
creative
confident