Creating A Business Flashcards
What it means to be enterprising
Taking risks to achieve business success, also identifying new business opportunities or gaps in the market
Key entrepreneurial characteristics
Innovation- coming up with ideas and solutions to problems
Independence- operating with freedom of control
Risk taking- being prepared to risk money and time if not successful
Leadership- inspire and motivate others
Confident- having the belief to succeed
Why the government encourages enterprise
Creates employment, reduces unemployment. Government has to pay less benefits to unemployed.
Brings in more taxes,more employed
Advantages of risk taking
Financial Rewards- potential to make large profits
Potential for growth- benefit from economies of scale
Be ahead of Competitors
Disadvantages or risk taking
Losing money/profits
Risking jobs- loss of employment
Owing money- bank loans
The resources a business needs
CELL - Capital,enterprise,land,labour
Capital is?
The resources or assets owned by the business. Contributed by the owners. Can be land,buildings,machinery,equipment and vehicles.
Enterprise is?
Having the innovative ideas to spot business opportunities and the ability and determination and willingness to take risks needed to bring the business into the market. By the entrepreneurs
Land is?
Basic need, place premises, houses, roads and farms. Also be oceans and natural resources
Labour is?
Human Resources in the business, the workers who are employed, physical or mental, supply can be limited
Why a business starts
Having a vision for a product or service
Wanting to be independent, your own boss
Providing a way to earn money
How a business starts
Decide on a product and produce a prototype
Decide where to source materials and supplies from
Design a business plan
Work out how much production of the product will cost
Micro business
1-9 turnover less than 1.7mil
Small business
10-49 turnover less than 5.6mil
Medium business
50-249 turnover under 22.8 mil
