Enterprise Flashcards
What is the definition of enterprise?
The ability to handle uncertainty & deal effectively with change.
What is the definition of an entrepreneur?
Someone who starts and runs a business and has responsibility for the risks involved. They need to manage the 4 production factors effectively.
What are the motives of becoming an entrepreneur? (7)
- Escape an uninteresting job.
- Pursue an interest or a hobby.
- Exploit a gap in the market.
- To be their own boss and make decisions / be creative.
- To work from home and not have to travel.
- To provide a service or product for a none profit basis.
- To have a big business one day and make money.
Why is an entrepreneur important to the UK economy? (2)
- Entrepreneurs create small business that could turn into big business.
- Increase employment levels.
What are the characteristics of an entrepreneur? (3)
- Need to have a good understanding of a product / service.
- Need to have drive.
- Should be unique or original.
What is the definition of opportunity cost?
The cost of he next best alternative which was given up when making a decision. I.e , what a entrepreneur could have done with their time, money and expertise if they didn’t create a business.
What is the definition of a government grant?
A sum of money given to a business or a project. Often it contributes to some of the cost not the whole thing and it does not need to be repaid.
What 4 purposes are grants awarded for?
- Innovation / research and development.
- Training.
- Economic regeneration.
- Encouraging youth to start their own business.
What two ways does the government help business’s?
- Government grant.
2. Advice.
What to entrepreneurs expect back in terms of risk taking? (3)
- Expect a finical reward.
- Intrinsic rewards such as doing a good job.
- Intrinsic reward such as meeting customer needs.
