Enterprise And Entreprenuership Flashcards
Entrepreneurship : definition
The actions of someone who shows some initiative by taking a risk by setting up, investing in and running a business.
Labour : definition
The time and effort of people involved in the business : employees, suppliers etc
Transformation process : definition
Describes what happens inside the business. This is where value is added to inputs to create outputs.
Land : definition
The natural resources that are used by the business eg actual land, energy and other natural resources
Capital : definition
Includes physical assets such as machinery, computers, transport which are used in production. Capital can also include finance - the investment that is required in order for the business activities to take place.
Enterprise : definition
Enterprise brings together or organises the other inputs. The entrepreneur takes the decision about how much capital, what kind of labour etc and how and when they are needed in the business. It’s believed to be the most important input for a successful business.
High quality people : definition
Employed (the best the business can afford at each stage of development) are retained and invested in (training).
Capital investment : definition
Focused on efficiency and quality - use of modern machinery or IT systems of the right kind can have significant effect whether a small business is able to compete.
Outputs from Transformation process categorised into three groups :
Primary, secondary and tertiary.
Primary sector: definition
Extraction of natural resources (eg gas and oil) and farming activities.
Secondary sector : definition
Production of finished goods and components (eg tv, motor vehicle, games console). Often referred to as manufacturing sector.
Tertiary sector : definition
Providing a service of some kind (eg health, travel, security). Retail businesses are in the tertiary sector.
Quaternary sector : definition
Consists of industries providing information services, such as computing and ICT, consultancy and reasearch and research and development. SIMILAR TO TERTIARY.
Why do people set up their own business ?
1) to make money 2) to take advantage of an opportunity 3) to create their own job.
Financial objectives to setting up a business :
1) survival 2)profit 3) personal wealth.
