Enterprise Flashcards
Content
Define Enterprise
Enterprise means having the skill and taking the initiative and the risk to make a business happen
What is a SME?
A SME is a small to medium sized enterprise, with 0-249 employees. They have a turnover less than £50m
What are needs?
What people need to survive eg. food, warmth shelter. Needs are limited.
What are wants?
What people desire but can live without eg. holidays, new shoes. Wants are unlimited.
Explain how satisfying needs and wants can give opportunities to entrepreneurs.
Satisfying customer needs and wants creates demand, leading to business opportunities. Entrepreneurs identify gaps in the market, develop innovative products or services, and generate profit by meeting consumer desires.
Identify business opportunities.
Business opportunities arise from market gaps, emerging trends, consumer demand, technological advancements, and changes in regulations or demographics. Entrepreneurs analyse these factors to create profitable ventures.
What is an entrepreneur?
An entrepreneur is a person who uses an idea and starts a business taking on the financial risks in the hope of making a profit (reward)
Explain the role of the entrepreneur in creating, setting up, running, and developing a business.
Entrepreneurs identify opportunities, develop business ideas, secure funding, manage operations, take risks, innovate, and grow the business. Their role evolves from idea generation to long-term strategic development.
Explain the financial and non-financial motives of entrepreneurs.
Financial motives:
* Profit maximisation
* Wealth creation
* Financial independence
Non-financial motives:
* Personal satisfaction
* To be their own boss
* Passion for an industry
* Social impact
* Flexible work-life balance
* Desire for control.
Explain the characteristics and skills of entrepreneurs.
Characteristics:
* Risk-taking
* Creativity
* Resilience
* Initiative
* Determination
Skills:
* Leadership
* Decision-making
* Communication
* Problem-solving
* Financial management.
Explain the importance of entrepreneurs and SMEs to the primary, secondary, and tertiary sectors of the UK economy.
Entrepreneurs and SMEs drive innovation, create jobs, boost competition, and contribute to economic growth. They support supply chains across all sectors.
What is the Primary sector?
Extracting raw materials from the earth or sea. This is sometimes known as extractive production eg. coal mining.
What is Secondary sector?
This is the manufacturing and assembly process. It involves converting raw materials into components. Eg. house building.
What is the tertiary sector?
Refers to the commercial services that support the production and distribution process. It involves providing a service eg. retail, services, hospitality.
Identify the internal stakeholders who are affected by a business and their interests.
Owners:
* Profit maximisation
* Business growth
* Return on investment.
Employees:
* Job security
* Fair wages
* Good working conditions
* Career progression.
Managers:
* Business success
* Decision-making power
* Personal reputation.
Identify the external stakeholders who are affected by a business and their interests.
Customers:
* High-quality products/services
* Fair pricing
* Good customer service.
Suppliers:
* Reliable contracts
* Timely payments
* Long-term relationships.
Government:
* Tax revenue
* Employment levels
* Compliance with laws.
Local community:
* Job creation
* Environmental impact
* Ethical practices.
Creditors:
* Repayment of loans
* Financial stability of the business.
Pressure groups:
* Ethical business practices
* Environmental responsibility
* Fair treatment of workers.
