Topic 1.1 - Enterprise & Entrepreneurship Flashcards

1
Q

Who is an entrepreneur?

A

Someone who creates a business, taking on financial risks with the aim of making a profit from the business

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2
Q

Where do new business ideas come from?

A
  • Changes in what consumers want
  • Advances in technology
  • Products and services becoming obsolete
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3
Q

What does it mean for a product to become obsolete?

A

The product is out of date or not used anymore

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4
Q

What is E-commerce?

A

Using the internet to carry out business transactions

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5
Q

What is M-commerce?

A

Using mobile technologies such as smartphones and tablets to carry out business transactions

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6
Q

What are some examples of changes in technology?

A
  • Making expensive technology affordable
  • Social Media
  • E-commerce and M-commerce
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7
Q

What is a payment platform?

A

A platform that allows businesses to take online payment from customers.
( Usually free for customer but take a small commission form seller)

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8
Q

What are the advantages of using E-commerce and M-commerce?

A
  • Allows businesses to trade with customers around the world
  • Entrepreneurs don’t have to rent a physical building to start their business ( they can take it straight to the market place)
  • Helps generate new business ideas
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9
Q

What impact does Social Media have on a business?

A
  • Can help promote a business/ attract customers

- Encourages customers to talk about a businesses product/services

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10
Q

How can a business keep up to date with changing trends in society?

A
  • Ask customers for feedback (Questionnaires, Surveys etc.)
  • Trial new products
  • Can use data to identify customer wants and needs
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11
Q

How do products and services become obsolete?

A
  • Advances in Technology (Older tech is replaced etc.)

- Changes in fashion or taste

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12
Q

Give 2 ways in which an entrepreneur comes up with new business ideas

A
  • Adapt an existing product or service to keep up with changes in consumer trends
  • Create a completely original product or service to satisfy a new or previously unknown customer trend
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13
Q

How can you adapt an existing product or service?

A
  • Adapting the promotion strategy of a particular product or service
  • Changing the product’s brand name
  • Responding to new fashions trends
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14
Q

Why might a business decide to adapt one of it’s existing products?

A
  • It can cut the cost of development
  • Can make it quicker to launch ‘new’ products
  • Their target market may be changing
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15
Q

What is the definition of a company?

A

A business with a separate legal identity that is owned by shareholders

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16
Q

Who are shareholders?

A

The owners of a company

17
Q

Why do people go into business?

A
  • To gain money
  • They see a problem and can find a solution to it
  • They see a gap in the market
18
Q

How can a business develop competitive advantage?

A
  • Have a better product than other businesses
  • Give it’s customers better service
  • Come up with an idea or a product that is unique
19
Q

What does the term ‘Blue sky thinking’ mean?

A

A technique of creative thinking where participants are encouraged to think of as many ideas as possible about an issue or problem

20
Q

What are the main risks an entrepreneur takes when they start up a new business?

A
  • Business failure
  • Financial Loss
  • Lack of security
21
Q

What is a revenue forecast?

A

A prediction of future revenue based on expected sales

22
Q

Why do businesses fail?

A
  • They have a problem with their cash flow

- Unexpected drop in sales revenue

23
Q

Why might sales revenue drop?

A
  • Recession
  • Behaviour of suppliers
  • Competition
24
Q

What is cash flow?

A

The amount of money going in and out of a business

25
What type of risks can lead to financial loss?
- Competitive risks - Technical risks - Financial risks
26
What is an ‘Investment’?
Putting money into a business with the intention of making a profit
27
What is intuition and why is it used?
- Intuition is like a ‘gut’ feeling | - Entrepreneurs use It as it is quick and it proves a judgement created by our feelings
28
What are the rewards of setting up your own business?
- Becoming Wealthy - The excitement - The control/ Independence
29
Who is a stakeholder?
Anyone who has interests in the business activities
30
What is the purpose of business activities?
- To produce goods and services - To meet customer needs - To add value
31
How can a business meet customer needs?
- Have a positive relationship with them - Friendly and helpful customer service - Reasonable prices
32
How can you add value to a product?
- Branding - Convenience - Quality and design - USP
33
What are the advantages of branding?
- Creates customer loyalty | - It’s a way of defining a business’s aims and values
34
How can you make a product or service convenient?
- Excellent customer service - Easy to pay for - Great customer experience
35
How is quality and design adding value to a product/service?
- Quality can show customers that they can depend on the business - A well designed product or website can encourage consumers to buy from that business - If a product looks attractive, more people are likely to pay a higher price for it
36
What is USP + Give examples of it?
- A USP makes a product stand out from it’s competitors | - Examples: Price, Quality, Being first to market
37
What is the role of an entrepreneur?
- Organise Resources - Make business decisions - Take risks: Financial and Business decisions