EXAM PREPARATION Flashcards
what are sources of business opportunity?
innovation, entrepreneurship, market opportunities, customer needs, research and development, technological development and global markets
define innovation and how does it provide business opportunity?
innovation is either creating a new good, service or process, or significantly improving an existing one. these innovations are produced in order to better suit existing or new market needs.
It provides business opportunity as many businesses are established surrounding an innovation.
define entrepreneurship
entrepreneurship is the ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit. those with this ability are referred to as an entrepreneur.
define research and development.
a set of activities undertaken to improve existing products, create new products and improve production processes. it is utilised in order to provide new opportunities and expand.
why would someone want to start a business?
a desire for independence
to make a profit
to fulfil a market need
to fulfil a social need
what is a goal?
a goal describes what a business expects to achieve over a set period of time. they provide businesses with a clearly defined purpose and direction, help measure results and develop ideas.
what are S.M.A.R.T goals?
Specific, Measurable, Attainable, Relevant and Time bound.
what are some financial goals?
- make a profit
- increase sales
- increase market share
- expand the business
- maximising the return on investment
what are social goals?
- community service
- provision of employment
- social justice
- ecological sustainability
give some examples of a personal goal
to obtain a higher income or gain financial security
what are the characteristics of a successful entrepreneur
- a shared vision
- initiative
- innovation and enterprise
- an unwavering passion
- open mindedness
- the desire to be an expert
- a looking forward approach
- a constant flow of ideas
what are the skills of business owners?
- communication
- identify problems
- decision making
- leadership
- technical, analytical, organisational and financial skills
what is a business concept and what can be its source?
the recognition of a gap in the market and the initial idea of having a business established in order to fulfil this need.
they can be gained through listening to the people, research, interpreting statistics or identifying a gap in the market
what is the link between business concepts and opportunities?
business concepts are developed after a potential business owner expands on an idea that has arisen from an assessment of business opportunities.
what is a feasibility study?
a feasibility study is an assessment of the practicality and potential of success of a proposed business idea. they include an assessment of the market, a consideration of operations, an analysis of commercial feasibility, an appraisal of the potential owners management ability and an understanding if others have tried the proposed idea.
define market research
a process of systematically collecting, recording and analysing information concerning a specific market.
what are the steps of market research?
- identifying what information is needed to make a decision about the potential of the business. eg. pet shop owner learn about pet stats in local area
- gathering relevant information from appropriate sources eg. surveys, stats (to eventually have an idea of the market conditions)
- analysing and interpreting the relevant results to extract some clear information that will assist in business decision making.
what are market conditions?
market conditions are the features of a market into which a new good or service is to be introduced, and include factors such as the number of potential customers, level of competition and potential for growth.
what is the economy?
an economy is a system set up to determine what to produce, how to produce and to whom production will be distributed.
how do businesses contribute to the economy and nation? (5)
- taxation (pay tax, gov uses tax money for the people)
- contribute to economic growth
- provide employment
- export earnings (money is returned from other countries in return for Australian exports, gov, society)
- research and development (undertaken by the business eg. medicine company benefiting society by making medicine.)
what are ways that a nation can foster a business?
government research, council grants for new businesses, business mentorships, school-based educational programs in entrepreneurship and regional business start up hubs
