Enterprise and entreprenurship Flashcards
How do new businesses arise?
- changing technology
- changing consumer needs
New technology can:
- faster production and services
- make products more compact
- cheaper
- easier to use
- make products safer
New consumer wants and needs are caused by changes in:
- fashion
- economy
- national demographics
- lifestyle
- technology
What does the introduction of new technology and changing of consumer needs result in?
products and services becoming obsolete
What is planned obsolescence?
where products are designed to only last a short time encouraging consumers to but newer and improved versions
What are the rewards of starting a business?
- business success
- profit
- independence
What are the risks of starting a business?
- business failure
- financial loss
- lack of security
How can risk be reduced?
- detailed market research
- produce a business plan
- be competitive
- raise sufficient startup finance
What makes some businesses riskier than others?
- seasonal markets
- small markets
- highly competitive markets
- little knowledge
Ways of adding value:
- more convenient
- USP
- improved efficiency
- branding
- improved quality
- better design
What is the benefit of adding value?
increased value = increased prices to customers = reduced break even point
What do entrepreneurs do?
take a risk and turn their ideas into a business and keep resilient to the outcome
What are enterprise skills?
- risk taking
- willingness to undertake a new adventure
- showing initiative
How do entrepreneurs create new products?
- invention
- innovation
Entrepreneurs benefit the economy by:
- meeting people’s needs
- creating jobs
- generating economic activity
- paying tax to the government
- exporting goods abroad
