Enterprise Flashcards
why do people start their own business?
•to gain a profit
•to turn a hobby or pastime into a business
•to use redundancy money and provide themselves with employment
•to be their own boss
needs
people have a limited number of needs that must be satisfied if they are to survive- including physical needs such as a minimum of food, water, shelter and clothing, and physiological and emotional needs like self-esteem and love
wants
wants are unlimited, people constantly aim for a better quality of life, e.g. more food, better housing, longer holidays, better education, entertainment
why do business opportunities change
needs and wants can change quickly as fashions and lifestyles change, and also over the long term incomes increase and populations change
entrepreneur
an entrepreneur is someone who starts and runs a business: perhaps they make a product and then sell that product, or provide a service; they employ people and try to make a profit
characteristics of an entrepreneur
•being a risk raker
•product knowledge
•hard working
•passionate/ determined/ ambitious/ perseverance
•taking the initiative and being proactive
•creativity and innovation
•organised
why are entrepreneurs important to the economy
•bring new ideas to the market and drive development of new technologies
•innovation brings more profit
•willingness to drive the business forward
•create new jobs
•provides new products
•increases exports which helps the balance of payments
•government benefit from taxation that is made from revenue
primary sector of industry
extractive- produces raw materials
secondary sector of industry
manufacturing and construction industries make, build and assemble products
tertiary sector of induustry
services give value to people but aren’t physical goods
-direct services to people
-commercial services to business
how much employment does the tertiary sector provide
80%
how does the secondary sector create wealth
manufacturing
why is the secondary sector in the UK declining
competition from cheap foreign imports from developing countries, they cannot compete with low labour costs in China and India
what’s the key issue for the secondary sector
ensuring they can turn raw materials into something consumers will pay for; they have to maintain competitiveness by adopting suitable strategies and investing in high tech industry where there is emphasis on research and development
how does the secondary sector help the UK’s balance of payments
it manufactures goods for export and earns money for the future
