Enterprise Flashcards
1
Q
what is enterprise?
A
- the formation of a new business or development of a new good or service to be introduced to the market
2
Q
what are SMEs?
A
- small or medium enterprise
- turnover less tha £50m
3
Q
what are some business opportunities?
A
- fashions change
- incomes change
- populations change
4
Q
what is an entrepreneur?
A
- someone who starts and runs a business
- to make a profit
- take a financial risk
5
Q
why do people start their own business?
A
- gain a profit
- turn a hobby into a business
- use redundancy money and provide themselves with employment
- be their own boss
6
Q
what are entrepreneural characteristics?
A
- risk-taker
- hard-working
- determined
- innovative
- organised
7
Q
what are 4 reasons entrepreneurs are important to the success of the UK economy?
A
- innovative, bring new ideas to the market, drive development of new technologies
- create new jobs
- provide new products
- government benefit from taxation
8
Q
what is the primary sector?
A
- extractive
- produces raw materials like oil as well as producing final products like fish
9
Q
what is the secondary sector?
A
- manufacturing and construction industries make, build and assemble products
10
Q
what is the tertiary sector?
A
- services give value to people but arent physical goods
- sometimes classified as direct services
11
Q
what is the importance of the primary sector?
A
- crucial to local economies
- a lot of food is from the UK agricultural industry even though numbers employed are very small
12
Q
whats the cause of the declining importance of the secondary sector?
A
- competition from cheap foreign imports from developing countries who have low labour costs
13
Q
whats the importance of the tertiary sector?
A
- employs 80% of those in employment
14
Q
why has employment in the primary sector declined?
A
- raw materials have run out and are now found elsewhere in the world
15
Q
why has employment in the secondary sector declined?
A
- de-industrialisation
- changes in consumer demand in favour of foreign goods
- increasing overseas competition
- manufacturing has become unfashionable
16
Q
why has employment in the tertiary sector increased?
A
- tertiary business created like internet cafes
- greater affluence has increased demand for things like travel
- manufacturing has become unfashionable
17
Q
who are the 7 main stakeholders in a business?
A
- shareholders
- managers
- employees
- customers
- suppliers
- local community
- government
