enterprise and SMEs

Question 1

what is an enterprise?

Answer 1

the starting point of any business, can be applied to any business.

Question 2

what are the 4 factors of production?

Answer 2

land
labour
capital
entrepreneurial skill.

Question 3

what does SME stand for?

Answer 3

Small and Medium size enterprises.

Question 4

what is SME defined by?

Answer 4

the number of employees
turnover
net worth shown on a balance.

Question 5

what is an entrepreneur?

Answer 5

a person who spots an opportunity and shows initiative to take risks in order to benefit from the potential rewards. A person who sets up a business.

Question 6

what are some roles of the entrepreneur in creating and setting up a business?

Answer 6

-generating an idea
-conducting market research
-drawing up a business plan
-raising finance
-deciding on a legal structure.

Question 7

what are some roles of the entrepreneur in running and developing a business?

Answer 7

-generating a customer base
-designing a marketing mix
-keeping financial records
-employing staff
-sourcing supplies and managing stock.

Question 8

what is profit maximisation?

Answer 8

to make as much profit as possible.

Question 9

what is profit satisfaction?

Answer 9

to make enough profit to be satisfied but not purely be motivated by money.

Question 10

what is an ethical stance?

Answer 10

to provide a good or service that meets ethical beliefs and behave in a manner deemed to be morally correct.

Question 11

what is a social entrepreneurship?

Answer 11

an enterprise motivated by supporting a cause rather than making a profit. any surplus revenue earned is used to further support the cause.

Question 12

what are the other two non-financial motives to becoming an entrepreneur?

Answer 12

independence-being your own boss and making your own decisions
homeworking-match family commitments to work commitments + work life balance.

Question 13

what are some characteristics of an entrepreneur?

Answer 13

-opportunity spotter
-creative
-risk taker
-positive thinker
-self motivated
-positive thinker
-show initiative
-determined and persistent

Question 14

skills required for an entrepreneur?

Answer 14

-communication
-literacy
-numeracy
-information technology
-organisation
-problem solving
team working

Question 15

what is the primary sector?

Answer 15

businesses that extract natural resources that can then be used by others to produce resources.
e.g. farming, fishing, mining.

Question 16

what is the secondary sector?

Answer 16

businesses that turn raw materials into finished goods or components. Value is added through the manufacturing process​.

Question 17

what is the tertiary sector?

Answer 17

businesses that provide to individuals or other businesses
e.g. banking, retail and telecommunications.