Enterprise Flashcards
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what is the definition of Enterprise?
A project that involves difficulty or risk such as brining a new product to the market.
what is the definition of SME?
small to medium sized enterprise that employs fewer than 250 employers and turnovers 50 million.
What is the definition of an Entrepreneur?
A individual that sets up and runs a business and takes on the risks associated with the business.
what is the definition of ‘wants’ and ‘Needs’?
wants are unlimited, people constantly aim for a better quality of life.
People have a limited number of needs which must be satisfied if they are to survive.
what are the roles of the entrepreneur?
creating and setting up the business as well as running and developing the business.
what does creating and setting up a business involve for a entrepreneur?
-generating a idea
-asking if the idea can add value
-conducting market research
-drawing up a business plan
-deciding on legal structures
-raising finance
what does running and developing a business involve for a entrepreneur?
-generating a customer base
-designing a marketing mix
-sourcing supplies and managing stock
-keeping financial records
-abiding by legislation
-employing staff
what are the roles taken by entrepreneurs?
-setting up and leading their business
-risktakers
-decision making
-acting as a innovator
what motives do entrepreneurs live off?
-profit
-being their own boss
-job satisfaction
what are the risks of being an entrepreneur?
-low sales
-unexpected costs
-unexpected events
-loss of security
-damage to reputation if fail
what are the benefits of an entrepreneur?
-be their own boss
-pursue interest
-profits
-self satisfaction
-better work life balance
what are the business opportunities?
-needs
-wants
-goods
-services
-non-durable
-durable
-consumer goods
-producer goods
what are consumer goods?
goods produced for the general use by the public.
what are producer goods?
they are also known as capital goods, they are used to produce other goods.
what are personal and commercial services?
personal- ones that are aimed at individuals
commercial- ones that are aimed at businesses
what are the factors of production?
-land
-capital
-labour
-entrepreneur
explain the factors of production
land- this refers to the physical and other natural resources they may use
labour- theses are the skills and the number of employees employed by a business
capital- this is the equipment used to produce goods and services
entrepreneur- the owners, the risk takers, the ones that organise the businesses.
what is the primary sector of industry?
produces all the raw materials for them to get made into products.
what is the secondary sector of industry?
converts the raw material into products ready for selling.
what is the tertiary sector of industry?
is made up of organisations that provide services such as estate agents and delivery businesses.
where can entrepreneurs go in order to get help for their business?
-business Wales
-big ideas Wales
-prime Cymru
how to work out percentage change?
(new - old value)
———————— X 100%
old value
what are the importance of SMEs to the UK economy?
-creates jobs
-creates demand for products
-buys products and services
-introduces new technology and innovative ideas to the market
what are the disadvantages for SMEs towards the UK economy?
-smaller budgets
-less recognition
-harder to raise finance
what is the definition of stakeholders?
individuals and organisations who are affected by the decisions and actions of a particular business.
what are internal and external stakeholders?
internal- work within business
external- work outside business
what are the types of internal stakeholders?
-owners
-managers
-workers
what do the internal stakeholders want?
owners- maximum profit
managers- good salary
workers- job security
what are the types of external stakeholders?
-customers
-suppliers
-government
what do the external stakeholders want?
customers-good quality products
suppliers- paid on time
government- creates jobs and collect taxes
