UNIT 1 AOS1 DP1 - DP9 Flashcards
Define Entrepreneurship
Entrepreneurship the act of starting and operating a new business in response to opportunities, assuming all the risk in the hope of making a profit
Three examples of entrepreneurship
1) Pursuing Business Opportunities
2) innovation
3)seeking growth
Define innovation
change, improvement and/or transpiration. By using creative thinking entrepreneurs blend their flair, imagination to develop new products or better existing ones. Often used as a source of business opportunity
Seeking Growth
Peruse to seek growth and not intent in staying the same, an entrepreneur will seek new trends explore new products and new approaches so that business increase in size. Growth is Nassery for the survival of new business.
Motivation
Is what drives a person to apply individual effort over a sustainable period of time.
Internal drive- the have to behave in a certain way or to achieve a certain goal
Motivating Factors of people to start a new business
1) desire for independence
2) To make profit
3) To fulfill a market need
4) To fulfill a social need
Desire for finical and personal independence
Finacial: to support their own lifestyle without relying on someone else paying for them
Personal: make their own decision, not be told to-do something by someone else - be their own boss
To make profit
The residual amount after expenses and costs of running a business e.g wages, electricity
- people want to be rewarded of their hard work - keep profit
a business is unlikely to make profit straight away
Fullfill a market need
Provide customers - market - consumer with what no one else does - recognized a demand and are driven to stratify it strigfity ‘ a gap in the market’
Social Need
Doing something for other - assist member of the community - wanting to make a better differences
Characteristics of a successful business manager
Characteristics is a feature or quality of something or someone
- an Entrepeneur starts the business - and the manager runs it
* successful entrepreneurs - innovative, resourceful - willing to take risks - determined - knowledgably - strong networking ability
How Successful characteristics contribute to a successful business
Effective communication: clear directions - allows feedback and provide support
Determination: able to put in large volume of work
Knowdge: choose courses of action with the best insert of company
Ethical: how to treat Cosumnes, staff, suppliers
Flexible: able to adapt and change plans and stratergies consistently to achieve the bets outcome
Innovation
The process of creating a new or significantly improved good, service or process (way of doing something )
Market Opportunities
Market ~ is the place where buyers and sellers interact to trade goods and services
- overseas oppertunites
- prvide a good or service in a better manner
- gap in market
- insufficent in a market
Changing customer needs
Changing income: increasing (likely to demand more products - particularly luxury items )
CHanging taste - fahion - prices and trends - population
Technological Development
ideas and information can be transported more affectingly - increasing and reaching people more quickly
Global Market
Good and survives are exchange between people across the world.
- reduces dependence on local markets
- extended life cycle of new and existing products
Goal Setting
- business goals are what a business wants to achieve within a specific time frame
- business straggles will be developed to help the business achieve these goals
- and if the goals are achieved the business or manger has not achieved they look at why not, what happened
Types of goals
Finical Goals:
- associated with money financial performance
- increasing net profit
- increasing sales
- reducing expenses
- market share
Social Goals:
- associated with welfare of the community, environment or employees of a business
- reducing waste ecological sustainability
- provision of employment e.g employing youth/ homeless/ elderly
-social justice
SMART GOALS
S: specific - need to be clear and outline business wants to achieve
M: measurable - quantifiable so that
Processes of decision Making
The ability to identify the options available and then chose a specific course of action from the alternative.
s1: develop or determine goals
s2: outline the facts
s3: identify alternative solutions
s4: analyse the alternative ( the benefits and costs )
s5: choose the best alternative and implement it
Competitive Advantage
- offering a unique good/service that no one else is currently selling
- Selling an existing good. service in a better way (e.g better quality, lower price, better customer services )
- Using strategies that differentiate them from competitors
Relationship Between business opportunities and the business concept
The relationship between business opportunities and the business concept is direct in that the business concept follow the identification of the business opportunity. For example changing customer needs
Protecting a business idea
Trademark - legal protection over a business name, symbols, colours or packaging
Market research
Market research is the process of investigating and analysing the activities and behaviour of customers and competitors in a specific industry.
Initial Feasibility Studies
Is a researched evaluation of how viable a businesses concept is.
If something is feasible it is possible to do this feasibility studies access ( look at strengths and weakness of the business idea.
Market research is only one component of a feasibility study - also operational commercial, technical and legal feasibility studies has to be undertaken.
Once market research has been conducted then the business owner must evacuate.
Business contribution economically and socially well being of a nation - definition
Business contribution to the economic wellbeing of a nation - is reflected by level of income, consumption and wealth people or house hold have to support their material living standards.
Business contribution to the social wellbeing of a nation - is a measure of the quality of life individual has reflected by their non - material living standards.
Fostering culture of business way in which government and business do this
The way in which government can assist:
1) government research in R&D - because any business wont undertake the process due to costs
2) council grants - is a one off finical payment from a local council to a business - does not need to be repaid - take business idea and make it successful
3) School based entrepreneurship programs - $20 boss
4) Regional start up hubs - physical spaces that individuals and business can go to in order to have office facilities to work in, or to obtain support regarding business matters.
