unit 1 aos1 Flashcards
entrepreneurship
the process of establishing a business to satisfy a need in the market whilst taking on the associated risks
5 reasons to start a business
personal independence, financial independence, to make a profit, to fulfil a market need, to fulfil a social need.
personal independence
involves a person being in control of their own decisions and actions
financial independence
the ability to fund a desired lifestyle without relying on income from another individual
making a profit
a business generating more revenue than expenses it incurred
fulfilling a market need
is when a business fills a gap in the market by addressing customer needs that are currently unmet by competitors in the industry
fulfilling a social need
is improving society and the environment through business activities
6 sources of business opportunity
innovation, market opportunities, changing customer needs, research and development, tech development, global markets
innovation
involves creating and implementing new ideas or significantly improving upon an existing good, service or way of doing something
market opportunities
a need or want that is not being met by any business
changing customer needs
are the transitions in the desires of consumers
research and development
directing resources, such as money towards discovering, creating, and introducing new products and processes
technological developments
are the invention and innovation of the tools that can solve problems and enhance processes
global market
is the area in which businesses trade goods and services, comprised of both businesses and customers from countries across the world
business goals
are what a business wants to achieve in a specific time frame. can either be financial or social goals.
SMART Goals
Specific, Measurable, Attainable, Relevant, Time-bound
business concept
a brief outline of the business’s idea, its main selling activities, and the features that will provide it with a competitive advantage
market research
the process of investigating and analysing the activities and behaviours of customers and competitors in a specific industry
initial feasibility study
is a researched evaluation of how viable a business concept is
economic wellbeing
reflected by the level of income, consumption, and wealth people or households have to support their material living standards.
council grant
a one off financial payment from a local council to a business, which does not need to be repaid, that aims to support business ideas and development
regional start-up hubs
are physical spaces that individuals and businesses can utilise in order to have office facilities to work in, or to obtain support regarding business matters
characteristics of successful entrepreneurs
willing to take risks and strong networking ability
why is goal setting important?
without goals, a business may struggle to identify the direction it wants to take and won’t know how to achieve it. allows employees work towards a shared goal
vision statement
where the business wants to be in the future
mission statement
what the business does and how it will achieve it’s vision
