enterprise Flashcards
what is the meaning of enterprise?
enterprise is the formation of a new business or development of a new good or service to be introduced to the market.
what are SMEs?
small and medium-sized enterprises.
what is a need?
a need is something essential to survive e.g., food, water, shelter.
what is a want?
something we desire but is not necessary for survival e.g., car, mobile phone.
how can wants and needs provide opportunities?
-opportunities arise when a market need exists.
-needs/wants are constantly changing, new opportunities arise.
-therefore an entrepreneur with an idea, commitment and funds can easily succeed.
what is an entrepreneur?
-an entrepreneur is someone who starts and runs a business.
characteristics of an entrepreneur
-being a risk taker
-having product knowledge
-hard-working
-passionate/ambitious
-have perseverance
-taking initiative and being proactive
-having creativity and innovation
-being an effective organizer.
importance of the entrepreneur to the success of the economy
-bring new ideas to the market
-create new jobs
-provide new products
-government benefits from taxation that is generated from businesses.
entrepreneurial motives (financial)
-to earn a profit
-to provide a source of income.
entrepreneurial motives (non-financial)
-be their own boss
-follow a dream/passion
-give themselves a job
-for ethical/social reasons.
what is the primary sector?
extractive sector-produces raw materials e.g., iron ore and oil.
what is the secondary sector?
manufacturing and construction industries make, build and assemble products.
what is the tertiary sector?
services that give value to people but are not physical goods. services are sometimes classified as direct services (to people), e.g. the police force, hairdressing, and commercial services (to business) e.g. business insurance, financial services etc.
importance of entrepreneurs and SMEs to the primary sector of the UK economy
-in some rural areas e.g. west and mid wales and the scottish highlands, the primary sector is crucial to the local economy.
-we also still get a great deal of food from the UK agricultural industry, even though numbers employed are very small.
importance of entrepreneurs and SMEs to the secondary sector of the UK economy
-many entrepreneurs believe that manufacturing in the secondary sector creates wealth when compared to the service sector.
importance of entrepreneurs and SMEs to the tertiary sector of the UK economy
-in terms of employment, the tertiary sector is by far the most important in the UK employing approximately 80% of those who are in employment.
-the tertiary sector has grown considerably over the past twenty years and it can be argued that the tertiary sector is the most important in current times.
