Enterprise and Business Planning Flashcards
What is the primary sector?
The sector that supply essentials such as food and power etc.
What is the secondary sector?
This is private enterprises that supply consumer goods such as cars, clothes and electronics.
What is the tertiary (service) sector?
This is private companies such as gyms and companies that give financial advice.
What is an Entrepreneur?
Someone who starts and runs a business, they could bone selling a product or a service.
What are Entrepreneurs usually trying to do?
Make a profit.
What are the key characteristics of an Entrepreneur?
Risk taking, taking the initiative, being proactive, organising effectively, creativity and being innovative, hard working, determined and persuasive.
Why do people start their own business?
To gain profit, turn hobby into a business, use redundancy money and to be their own boss.
Are need and wants fixed or not fixed?
Not fixed.
What do needs and wants change with?
Fashion and lifestyle changes, income increase and population changes.
What are needs?
Required to survive for example, food, warmth, shelter , clothing etc, (Necessities).
What are wants?
What we would want too have, for example nicer clothes, new phone and holidays etc.
When do potential business opportunities happen?
When there is a need in the market.
How would a business investigate a market need or improving an already existing idea?
Asking questions, finding out through word of mouth.
What does a business plan do?
Makes clear objectives and how the business intends to achieve those objectives. Also outlines strategies and sources of finance.
What are the benefits of a business plan?
Gives instructions on how to run a business,
checks progress against objectives,
monsters cash flow,
takes action when objectives are not being achieved,
needed for potential investors or finance from banks.
