VCE Business Management: Unit 1 Overview

Entrepreneurship

The concept of entrepreneurship and the skills that an entrepreneur requires to be successful, including risk-taking, leadership, innovation, communication, decision-making, and networking skills.

Personal motivation for starting a business

Factors that personally motivate a business owner to pursue their business idea and establish a business.

Personal independence

A motivation for starting a business where the owner seeks to operate independently.

Financial independence

A motivation for starting a business to achieve financial self-sufficiency.

To make a profit

A motivation for starting a business focused on generating financial gain.

To fulfil a market need

A motivation for starting a business aimed at addressing a specific demand in the market.

To fulfil a social need

A motivation for starting a business that seeks to address social issues or contribute to community welfare.

Successful entrepreneur attributes

Willingness to take calculated risks, strong networking ability, and being determined, innovative, resourceful, and knowledgeable.

Sources of business opportunity

Ways a business can harness conditions in the market to develop a new business concept.

Innovation

A source of business opportunity that involves creating new ideas or methods.

Market opportunities

A source of business opportunity that arises from gaps or demands in the market.

Changing customer needs

A source of business opportunity that reflects the evolving preferences and requirements of consumers.

Research and development

A source of business opportunity focused on innovation and improvement of products or services.

Technological development

A source of business opportunity that involves advancements in technology that can create new business avenues.

Global markets

A source of business opportunity that involves expanding business operations beyond domestic borders.

Goal setting

The importance of setting goals for a business and the types of goals a business can set to progress in the future.

Decision-making

A skill that is crucial during business planning and goal setting.

Market research

The process of collecting qualitative and quantitative data to make informed business decisions.

Employment opportunities

Jobs created by businesses that contribute to the economic wellbeing of society.

Tax

Funds collected by the government from businesses, contributing to public services and infrastructure.

Infrastructure

Physical structures and facilities (e.g., roads, bridges) that support economic activity.

Economic growth

Increase in the production of goods and services in an economy over time.

International trade

Exchange of goods and services between countries, contributing to economic wellbeing.

Government investment in research and development

Funding provided by the government to support innovation and technological advancement.

Council grants

Financial assistance provided by local councils to support business initiatives.

Regional start-up hubs

Local centers that provide resources and support for new businesses.

Entrepreneurial skills

Abilities that enable an entrepreneur to successfully start and grow a business.

Risk-taking

The willingness to engage in ventures that have uncertain outcomes.

Leadership

The ability to guide and motivate a team towards achieving business goals.

Communication

The skill of effectively conveying information and ideas to others.

Networking

Building relationships that can provide support and opportunities in business.

Characteristics of successful entrepreneurs

Traits that contribute to entrepreneurial success, such as risk-taking and innovation.

Leadership skills

A skill that involves sharing a business vision with employees to inspire and persuade employees to support an idea.

Communication skills

A skill that involves being able to clearly transfer information to others and engage in two-way conversations with employees to listen and consider their feedback.

Decision-making skills

A skill that requires an entrepreneur to be able to select a suitable course of action from a range of plausible options.

Risk-taking skills

A skill that requires an entrepreneur to not fear failure and to take calculated risks.

Creativity

A skill that allows an entrepreneur to be creative and look for new ideas and opportunities as they arise in the market.

Networking skills

A skill that allows an entrepreneur to develop contacts that can provide assistance and advice in the future.

Business concept

The outline of the business's idea, its main selling activities, and the features that will allow it to gain a competitive advantage.

Competitive advantage

A condition that allows a business to perform better than its competitors.

Business opportunity

A situation that presents a chance for a business to grow or improve.

Viable business idea

A business idea that is capable of being successful and sustainable in the market.

Financial Review article

A publication that provides insights and analysis on financial news and trends.

Workout studio

A facility designed for physical exercise and fitness activities.

Legal barriers

Regulations or laws that protect a business concept from competitors.

Customer goods and services

Products and services offered to consumers by a business.

Employee motivation

The process of encouraging employees to perform at their best.

macro factors

Factors in the external environment that influence operations and decision-making when planning a business.

operating factors

Factors that include the needs and influence of stakeholders such as customers, competitors, suppliers, and special interest groups.

employment laws and regulations

Requirements a business must adhere to in order to comply with legislation and maintain an ethical working environment.

environmental legislation

Laws that govern the environmental impact of business operations.

industry regulations

Standards and rules that govern specific industries to ensure fair practices.

council regulations

Local government rules that businesses must follow.

tax

Obligations related to taxes that a business must fulfill.

societal values and beliefs

The core principles and morals that shape the preferences of a target market.

societal trends

Patterns in social behavior that businesses should consider in their planning.

interest rates

The cost of borrowing money, which can affect business planning and financial performance.

employment levels

The rate of job availability in a geographic location, impacting consumer spending and business operations.

tax rates

The percentage at which income or profits are taxed, influencing business profitability.

consumer confidence

The degree of optimism that consumers feel about the overall state of the economy and their personal financial situation.

technological considerations

Changes in technology that businesses must respond to in their planning.

overseas competitors

Businesses located in other countries that compete with local businesses.

overseas markets

Markets located in other countries where businesses may sell their products or services.

offshoring of labour

The practice of relocating business processes or services to another country.

exchange rates

The value of one currency in relation to another, affecting international business transactions.

online sales

Selling products or services via the internet, which is a consideration for global business.

copyrights

Legal rights that grant the creator of original work exclusive rights to its use and distribution.

trademarks

Symbols, names, or slogans used to identify goods or services and distinguish them from others.

Corporate social responsibility (CSR)

The considerations that a business can plan to implement in order to conduct business activities in an ethical manner.

Environmental considerations

Factors related to the impact of business activities on the environment.

Social considerations

Factors related to the impact of business activities on society.

Customer needs and expectations

Requirements and values of customers that have an impact on business planning.

Competitors' behaviour

Reasons why it is important for a business to be aware of the behaviour of its competitors.

Suppliers and the supply chain

Importance of a business considering what resources it requires, where to source its supplies from, and how it will retrieve its resources.

Sourcing considerations

Factors related to where a business sources its supplies.

Retrieving considerations

Factors related to how a business retrieves its resources.

Special interest groups

Various groups which may influence the activities of a business.

Unions

Organizations that represent the interests of workers.

Business associations

Groups that represent the interests of businesses.

Environmental lobby groups

Organizations that advocate for environmental protection.

Economic conditions

Factors such as interest rates, employment levels, tax rates, and consumer confidence that affect business operations.

Global considerations

Factors including overseas competitors, overseas markets, offshoring of labour, exchange rates, online sales, copyrights, trademarks, and patenting.

Legal and government regulations

Laws and regulations that govern business operations, including employment laws, environmental legislation, and taxation requirements.

Societal attitudes and behaviour

Factors related to societal values, beliefs, and trends.

sole trader

a business that is owned and operated by one individual and has unlimited liability.

partnership

a business owned by 2-20 people and have unlimited liability.

private limited company

an incorporated business structure that has at least one director and a maximum of 50 shareholders.

public listed company

is an incorporated business that has an unlimited number of shareholders and lists and sells its shares on the ASX(Australian security exchange). shareholders have limited liablity.

social enterprise

a type of business that aims to fulfil a community or environmental need by selling goods or services.

Government business enterprise

a business that is owned and operated by the government

incorporated meaning

Incorporated is a business being established as a separate legal entity from the owners.

un-incorporated meaning

Unincorporated is the business owner and the business being viewed as the same legal entity.

How do council grants support new businesses?

Councils offer funding or resources to startups, reducing barriers and supporting local economic growth.

What is an online business model?

A business that operates primarily on the internet, e.g. e-commerce stores.

What is a direct-to-consumer (DTC) model?

A model where businesses sell directly to customers without intermediaries.

What is a bricks-and-mortar business?

A traditional business with a physical store location.

What is a franchise model?

A business where individuals buy the rights to operate under an established brand.