Enterprise And Entreneurship Flashcards
Full capacity
Total amount you can produce
Demand
Amount consumers are wiling and able to buy
Patent
Legal ownership of your invention
Revenue
Money coming in
3 types of infringements
Patent
Trademark
Copyright
Enterprise
Entrepreneurial activity or business or company
Entrepreneur
Someone who creates a business, taking on financial risks with the aim of making a profit from the business
Consumer
Someone who buys and uses goods and services
Why new business ideas come about
Advances in technology
Changes in what consumers want
Products and services becoming obsolete
Obsolete
Out of date or not used anymore
Ways in changes in technology can provide business opportunities
Making expensive technology affordable
E-commerce and m-commerce
Social media
E-commerce
Using the internet to carry out business
M-commerce
Using mobile technologies , such as smartphones or tablets, to carry out business transactions
Social media
Websites that allow users to interact with other users, by sharing text-based messages, pictures or links to online content
Payment platforms
Enable businesses to take online payments from customers. They are usually free for the customer to use, but take a small amount of commission from th seller
Marketplace
The activities involved in buying as selling particular types of good or services in competition with other companies
Data
Information, particularly statistics, that can be collected and analysed
Demographic
Relating to the the population, such as average age, average income and so on
Ways in which entrepreneurs usually come up with new business ideas
Adapt a existing product or service to keep up with changes in consumer trend
Create a completely original product or service to satisfy a new or previously unknown customer trend
Types of adaptation of existing products and services
Adapting the promotion strategy of a particular product or service
Changing a product’s brand name
Responding to new fashions, for example offering different colours
Risk
The possibility that a enterprise will have lower than anticipated profits or experience a loss
Financial reward
The money that an entrepreneur or investor receives when a business succeeds
Market research
The process of gathering information about the market an customers’ needs and acts in order to help inform business decisions, including product design and marketing
Revenue forecasts
A prediction of future revenue based on expected sales : this is either a judgement or based on previous sales patterns
How can risk be minimised?
By being informed by evidence such as market research and revenue forecasts
Main risks that a entrepreneur takes when they start up a business
Business failure
Financial loss
Lack of security
Reasons for business failure
Problem with cash flow
Unexpected costs
Unexpected drop in sales revenue
Cash flow
The amount of money that coming in and out of a business and the timing of this movement
Sales revenue
The amount of money that comes in from a business‘s sales
Reasons for an unexpected drop in sales revenue
Recession
Behaviour of suppliers
Competiton
Investment
Putting money into a business with the intention of making a profit
Start-up
A new business, usually with a small number of employees - perhaps only one
Different types of risk
Competitive risks - risk competitors might do better
Technical risks - risk that a product or service might not work as intended
Financial risks - business does not have right amount of investment
Intuition
Knowing something instinctively or understanding something easily without conscious thought
Business enterprise
The entrepreneurial activity undertaken by entrepreneurs or businesses, either by setting up or expanding a business
Stakeholders
Anyone who has an interest in the activities of a business, such as its workers, its suppliers, its directors, the local community ad the government
Ethics
Moral principles or standards that guide behaviour of a person or business
The purpose of business activity
To produce goods or services
To meet customer needs
To add value
Customers’ needs factors
Fast delivery
Reasonable competitive prices
Friendly and helpful customer services
Prompt answers to their enquires
Enough stock in a shop that they ca buy a product there and then
A website that is easy to navigate and use
Adding value
The increase in a product’s value as a result of a business producing that product
How can value be added to a product?
Branding
Convenience
Quality and design
Unique selling points
Unique selling points
Something that makes a product stand out from its competitors
Values
Standards of behaviour or moral principles
loyalty
Wanting to always support something or someone
Market share
The proportion of sales in a market that are taken by one business
Potential USPS
Price
Quality
Being first to the market
Economy
The system by which a country’s money and goods are produced and used
The roles of an entrepreneur
Organise resources
Make business decisions
Take risks
The role of business enterprise
Production of goods and services
Meeting customer needs
Adding value to the product or service
The role of entrepreneurship
Added value formula
Final price - cost of production
Ways to add value
- branding
- convenience
- quality and design
- USPs
Calculated risk
Weighing up the risks and rewards of a new business to judge outcome and viability of business
Business failure
Associated with the running of the business and the sale of its products
Financial loss
Associated with the money invested in the business, and potential problems with the product
Lack of security
The entrepreneur will not have another source of income, sick pay or a pension
Rewards of setting up a business
- success
- profit
- independence
Branding
A way of defining the business, its aims and its values in a way that can be communicated to customers
Drawbacks of a business of having low levels of cash
May damage relationship with suppliers
Results in the business may not have sufficient materials
Why an enterpeneur may adapt an existing product to come up with a new business
Quicker to launch new products
Quicker to launch
Can reduce developments
