enterprise

Question 1

explain the meaning of an enterprise and an SME.

Answer 1

The meaning of enterprise is a business/ business idea. A SME is a small to medium enterprise, with a small business consisting of 10 or less people, and a medium business enterprise having between 10-50 employees.

Question 2

Explain how satisfying needs and wants can give opportunities to entrepreneurs.

Answer 2

There is always a customer demand and want for things, which makes it easy to know what to make. A want is something that is desired but is not necessary, and a need is something that is necessary for someone. However, an entrepreneur may take a need, and add value onto the product i.e. smart water, to increase its price.

Question 3

identify business opportunities

Answer 3

• word of mouth
• social media
• innovation
• invention

Question 4

Explain the role of the entrepreneur in creating, setting up, running and developing a business

Answer 4

The role of an entrepreneur is to be a visionary, so helping bring forward the ideas of the business and putting it into action. They then must show leadership qualities, be a hard worker and goal oriented, and be a risktaker to help the business grow and expand, gaining profit and producing a high number of sales.

Question 5

financial motives of an entrepreneur

Answer 5

• gaining a profit

- supporting themselves/family

Question 6

non financial motives of an entrepreneur

Answer 6

• independence and flexibility
• pursuing personal interests
• personal satisfaction

Question 7

skills of an entrepreneur

Answer 7

• time management
• strategic thinking
• communication
• planning
• curiosity

Question 8

characteristics of an entrepreneur

Answer 8

• visionary
• risk taker
• goal-oriented
• adaptable
• problem solver
• pro-active
• hard-worker

Question 9

importance of SMEs and entrepreneurs to the primary sector

Answer 9

the primary sector involves the extracting of raw materials from the land, air and sea i.e. extraction of oil, natural gas, which then are taken to the secondary sectors of work.

Question 10

importance of entrepreneurs and SMEs to the tertiary sector

Answer 10

Involves the provision of services, i.e. food providers, hospitals, hotels and resorts, banks.

Question 11

importance of SMEs and entrepreneurs to the secondary sector

Answer 11

The manufacturing of raw materials to transform them into finished goods for other businesses/consumers. This process adds value to the raw material.

Question 12

Evaluate the impact of entrepreneurs and SMEs on businesses and the economy.

Answer 12

Entrepreneurs and SMEs have a big impact on the economy, as they create jobs for thousands of unemployed people across the country and offers job security, it helps suppliers as they receive more orders and make their own profit, and it allows for more competition to be created, creating more motivation within the business.

Question 13

stakeholders that are affected by the business

Answer 13

• employees
• bank
• government
• local community
• pressure groups
• competition
• customers
• suppliers
• investors