Enterprise (yr 10)

Question 1

Why do businesses exit ?

Answer 1

Businesses exist to satisfy the needs and wants of customers.

They provide goods and services at a price that people are willing to pay in return for profit

Question 2

What are goods ?

Answer 2

Goods are tangible (can touch ) , Physical items

e. g
- pencil case
- table
- bed

Question 3

What are services ?

Answer 3

Services are intangible (can’t touch) - a business does something for you

e. g
- cinema
- massage
- taxi ride

Question 4

What is “ spotting an opportunity “?

Answer 4

The ability to see the need for a particular product or service that customers want

Question 5

What is enterprise?

Answer 5

In a business , enterprise is seeing an opportunity to provide a product or service that people are willing to buy and taking a risk to do so

Question 6

If you’ve got an idea …

Answer 6

1) spot the gap
2) turn into a working business
3) market research ( is there demand for the product or service ?)
4) business plan to attract funding (money )

Question 7

Who can be an entrepreneur?

Answer 7

Anyone can be an entrepreneur, they can have any education or background because it’s about you as a person

Question 8

What is an entrepreneur?

Answer 8

1. ) spots the opportunity to start and run their own businesses
2. ) has enterprise skills to help them become successful
3. ) takes a risk in the hope of making profit

Question 9

What are some characteristics of an entrepreneur?

Answer 9

Determination- focused, driven and positive that god goon to succeed and keep going when times are hard

Creativity- needed to have a good idea and to promote and present your idea well so business stands out

Risk taking - you will need to want to take a risk because it will cost you a lot of money and you might lose it if business fails .

Confidence- you speak to customers , suppliers and bankers and they need to know you are confident and not shy

Question 10

Why are some risk of starting your own business?

Answer 10

Financial - bankrupt , debt , lose money

Health - stress , physicaly ill ( chest pains )

Relationship strain - not at home with your family , kids won’t see you , you act differently ( because business not going well )

Time - a lot of hours ( no time for yourself )

Reputation - if business fails or does something wrong people see you differently

Failure - people don’t buy or not enough bought and if you don’t have enough money comming in you can’t pay bills , you have to shut down

Question 11

What are the rewards of starting you own business ?

Answer 11

Independence - be your own boss

Self satisfaction- if you succeed knowing you have set something from scratch , self achievement, feel good

Changing customer habits - get people to buy healthier stuff

Financial - if successful make a lot of profit

Make your own decisions - if your own boss you don’t need to consult anyone

Question 12

How can you reduce risk ?

Answer 12

Market research- ask potential customers , speak to experts / gain advice

Business plan - think about money , staff , suppliers , customers

Contingency planning - set problems and having a back up plan