The Business Idea Unit 1 Flashcards
What does ‘Entrepreneurship’ mean?
The act of starting a business in response to opportunities, assuming all the risks in the hope of making a profit.
What are the three parts to entrepreneurship?
- Pursuing business opportunities.
- Innovation.
- Seeking growth.
What are some motivations for starting a business:
-The desire for financial independence.
-The desire for personal independence.
-To make a profit.
-To fulfil a market need.
What does each source of motivation involve?
The desire for financial independence: The capacity to support a lifestyle without being employed or dependent on others. This means that business owners don’t need to depend on receiving income from an employer or for others to pay their expenses.
Desire for personal independence: The capacity to be in control of one’s everyday actions and activities. Business owners can choose when and where they work, and what tasks to complete.
To make a profit: Profit is a form of monetary reward. Some believe that they can earn much more by working for themselves than they would be working for someone else. Potential business owners would expect their extra effort to be rewarded through business profits.
To fulfil a market need:
The potential business owner may have particular skills that can be the basis of a new business or may recognize that particular goods or services for which there is a demand, are not available in a particular suburb or town.
To fulfil a social need
Those wanting to fulfil a social need will usually establish a social enterprise – a type of business that concentrates on a community or environmental need.
Some typical social needs are:
Providing opportunities for local unemployed people.
Developing skills or providing lifelong learning opportunities for disadvantaged people in the community.
Creating access to a better quality of life for disadvantaged members of the community
Focusing on waste minimisation and recycling.
Examples of characteristics of a manager.
Knowledge: A knowledgeable manager understands the environment they operate in and how to perform the relevant business tasks.
How it contributes to their success: Being knowledgeable will enable a manager to choose a course of action that is in the business’s best interests.
Determination: A determined manager will be driven to put in the significant amount of work required to develop a new business, and effectively plan a business’s direction or day-to-day activities.
How it contributes to their success: Businesses with determined individuals at the helm are better equipped to navigate challenges, capitalize on opportunities, and ultimately achieve their objectives.
Examples of characteristics of an entrepreneur.
Knowledge: A knowledgeable entrepreneur understands the environment they operate in and how to perform necessary business tasks.
How it contributes to their success: A knowledgeable entrepreneur will be able to adopt the best strategies and business practices when starting a business to improve its chances for success
Determination: Determined individuals are those who are hard-working and focused on achieving specific goals.
How it contributes to their success: A determined entrepreneur will respond positively to the stresses faced in developing a new business as they will persevere, helping the business to move forward.
What does each type of business opportunity involve?
Innovation: Innovation generally refers to the process of creating a new or significantly improved good, service, or process
Ideas for new products, or developments or improvements to existing products will often provide the opportunity for the establishment of a new business.
Market opportunities: A market opportunity is a need or want that is not currently being met by any business – this is also known as a ‘gap’ in the market.
What is the difference between innovation and invention? - What are they?
Invention refers to creating something entirely new, such as the creation of the lightbulb or the telephone, whereas innovation is the process of improving an existing creation.
What is goal setting? Why is it important?
What is business concept development? Why is it important?
What is the relationship between the two?
What is market research?
What is an initial feasibility study?
How are market research and initial feasibility studies similar?
