Enterprise Flashcards
What is enterprise ?
What a person uses when running a business, with initiative & risk taking
What are SMEs ?
Small & medium sized businesses = whose personnel numbers fall below certain limits
What is an entrepreneur ?
Someone who sees an opportunity & takes a risk by starting an enterprise
What 2 things does an entrepreneur do ?
- Provide goods and services that customers want or need
- Creates and sets up a business
What is a good ?
Physical product
What is a service ?
Intangible product
What is a business plan ?
A set of documents prepared by a firm’s management to summarise its operational & financial objectives for near future
What is innovation ?
Translating an idea or invention into a good or service that creates value for which customers will pay
What can innovation lead to ?
Creation of new parts or new businesses
What are entrepreneurial motives ?
Reasons that drive someone to set up a business
What is a financial motive ?
Profit maximisation
What are 4 non financial motives ?
- Satisficing
- Ethical stance
- Social entrepreneurship
- Independence & homeworking
What are entrepreneurial characteristics ?
Personality traits & skills that an entrepreneur needs to start & run a successful business
What are 4 reasons entrepreneurs & SMEs important for the economy ?
- Combined £1.8b sales = 47% sales in 2016
- Large amount of direct employment
- Offer innovative products
- SMEs account for 46% of largest industries (retail, manufacturing, vehicle repairs)
What is the primary sector ?
Organisations at first stage of production
What is the secondary sector ?
Second stage of production, using primary resources to convert into products
What is the tertiary sector ?
Provides services
What is a stakeholder ?
Person, group or organisation that is affected or has interest in business operations & objectives
What are internal stakeholders ?
Groups within a business
What are external stakeholders ?
Groups outside of a business
How are staff affected by a business ?
Growth = higher wages
How are managers affected by a business ?
Growth = higher pay
How are shareholders affected by a business ?
Rising profits = greater payments for investment = greater shares
How are suppliers affected by a business ?
Growth = more orders = higher profits
