Enterprise, Stakeholders And Business Plans Flashcards
Define the term entrepreneur?
Someone who starts and runs a business
State three characteristics of an entrepreneur?
Risk taker, organised, creative, taking initiative, being productive, understanding the market, being an effective organiser, having creativity and being innovative, committed, good judge of people
State three motives of becoming and entrepreneur?
Pursue an interest, financial reward, independence, job satisfaction
State two reasons why entrepreneurs are good for the economy?
Exports, society builders, job creators, innovators, wealth creators, taxes,
State two reasons why entrepreneurs are important to the Uk businesses?
Create jobs, pac tax to the government, introduce new technology, create demand for products
What is an SME
a small or medium enterprise with small turnovers or turnovers less than £50 million
Define the term needs?
Needs are human requirements needed to survive. Needs are LIMITED
Define the term wants?
Wants are humans desires that are UNLIMITED
Define the term goods?
Goods are PHYSICAL items which are durable and non durable
Define the term services?
They are intangible business activities
Name some financial motives for an entrepreneur?
Financial reward( profit), lack of employment opportunities, government incentives,
Name some non financial motives for entrepreneurs?
Independence, job satisfaction, costumer satisfaction
Define the primary sector?
Involves the EXTRACTION and PRODUCTION of raw materials
Define the secondary sector?
Involves the TRANSFORMATION of raw materials into goods
Define the tertiary sector?
Involves the PROVISION of services to customers and businesses
Define the term stakeholder?
Anyone who is affected by the business and so has an interest in the business
Name 5 stakeholders?
The business itself, shareholders, directors and managers, employees, customers, suppliers, government, local community
Name 3 internal stakeholders?
The business, employees, managers/ directors, shareholders
Name 2 external shareholders?
Customers and local community
What is a business plan?
It is a statement that outlines the way that the business will achieve its aims and objectives?
What is the overview summary?
It clearly describes the business idea and sets out the overall aims and objectives of the business.
What is the marketing plan in a business plan?
It’s based on desk and field research and contains market research outlining the size of the market, the needs of the customers, the level of competition
What is the operations plan?
Includes details on where the business will be located, production methods and equipment needed
What is the Human Resources plan?
Shows the number of employees and the skills/ experience they need
What is the financial plan?
Shows financial forecasting such as sales forcast, cash flow and break even analysis
Name three advantages of a business plan?
It forces an entrepreneur to look at all aspects of the business not just focus on certain area and so it will improve the whole business
It’s essential to convincing lenders that loans will be repaid
Reduces the risk of failure
Helps keep the business on track and shows clearly where the business should be in terms of making profits
Name three disadvantages of a business plan?
Needs to be well constructed for it to be successful
Can be unrealistic
Doesn’t guarantee success
Can’t forecast sharp economic downturns
What are the main sources of information and guidance available for entrepreneurs?
Bank managers, small business advisers, accountants, local enterprise agencies,
Define the term enterprise?
Defines the actions of someone who shows some initiative by taking a risk by setting up a business
State a reason for a decline in the primary sector?
Hard work labour and low pay
State a reason for the decline in the secondary sector?
An increase in the number of machines used to make products
State a reason for an increase in the tertiary sector?
Nation economy grows and lack of employment
What is considered a shareholders main interest in the business
Profit
What is considered an employees main interest in a business?
Get a good wage and perhaps bonuses
What is considered a customers main interest in a business?
Get good quality products for a reasonable price
What is considered a customers main interest in a business?
Get good quality products for a reasonable price
