Enterprise and enterpreneurship Flashcards
What are some rewards in a business?
- Personal satisfaction
- Profit
- Independence
What are risks in a business?
- Business failure
- financial loss
- lack of security
How can risks be reduced?
- Carry out market research
- Business Plan
- Ensure business is competitive
What makes businesses riskier than others?
- Small market
- Seasonal demand
- Competitive market
What is the role of business enterprise?
A business is an organisation who provides goods/services to meet customer needs in order to make a profit
What is a supplier?
A business that sells products to another business
What is production?
Using raw materials, labour and machinery to make products
What is the role of the customer?
They buy the products from businesses and use them.
What is added value?
Lowering variable cost or adding something to it that increases customers willingness to pay higher prices
What are ways to add value?
- Branding
- Better design
- USP
- Improved quality
- Better convenience
What is a entrepreneur?
A person who owns and runs their own business. They take risks and have willingness to follow idea through.
What do entrepreneurs do?
- Take risks
- Have ideas
- Make business decisions
What skills do entrepreneurs need?
- show initiative
- risk-taking
How do entrepreneurs benefit the economy?
- create products and services to meet customer needs
- create jobs
- generate economic activity
