Enterprise Flashcards
Enterprise definition
the willingness to take risk to undertake s new venture and show initiative with a view to gaining rewards
Entrepreneur definition
someone who has an idea and is willing to take a risk to set up a new business venture
5 characteristics of an entrepreneur
- Opportunity spotter
- Resilient
- Confident
- Risk taker
- Passionate
3 non-financial motives of an entrepreneur
- Independence
- Home-working
- Social entrepreneurship
SME definition
Small to medium enterprise with less than 250 staff and £50million revenue
4 factors of production
Land, Labour, Capital and Enterprise
Benefits of new entrepreneurs to the economy
Unemployment falls Better standards of living for people Consumer demand is met More tax money (income) More PDI
Examples of stakeholders
Students, jobseekers, local people, local shops, competition, government and shareholders
Strengths of breakeven
Allows business to calculate the minimum number of sales needed before starting to make a profit.
Can calculate the level of profit/loss at different levels.
Provides a target.
Weaknesses of breakeven
Based on predicted costs and revenues.
Ignores changes in variable costs or selling price as items are bought/sold in larger quantities.
Only indicates the number of sales needed and does not ensure actual sales will materialise.
What is the Primary Sector?
Provides food, farming and the power we use
What is the secondary sector?
Consumer goods/services. manufacturing cars, processing foods, making clothes, designing and producing electronics
What is the tertiary sector?
Private companies provide gyms, financial advice, operating fleets of buses and trucks and preparing market campaigns
Why do people start their own business?
To gain a profit. To turn a hobby into a business. To use redundancy money. To be their own boss.
What are needs?
What people need in order to survive (food, water, shelter)
