Enterprise, business growth and size Flashcards
Name the benefits of being an entrepreneur
- Independence
- able to put your ideas to practice
- fame
- Success
- Chance of profit
- make use of personal skills and interests
Name the disadvantages of being an entrepreneur
- Risk
- Capital
- Lack of experience and knowledge
- Opportunity cost
What are the characteristics of successful entrepreneurs
- Hard working
- Risk taker
- Creative
- Optimistic
- Self confident
- Innovative
- Independent
- Effective communicator
Why do governments support business start ups?
- Reduce unemployment
- Increase competition
- Increase output
- Benefit society
Define business plan
Document containing the objectives and important details about the operation finances and owners of the business
Define capital employed
The total value of capital used in the business
Define Internal growth
Business expands its existing operations
Define horizontal integration
Firm merges or takes over another firm in the same industry/ stage of production
Define vertical integration
Firm merges with another firm in the same industry but different stage of production (either backwards or forwards)
Define Diversification/Conglomerate integration
Firm merges with a firm in a completely different industry
Why do some business stay small
- Type of industry (hairdresser)
- Market size
- Owners objectives
Why do some businesses fail?
- Poor management
- Poor finical management
- Unable to plant for change
- Over expansion
