Edexcel GCSE Business - Enterprise & Entrepreneurship

Flashcards covering the dynamic nature of business, risk & reward, and the role of business enterprise.

Dynamic Nature of Business

Refers to how new business ideas come about due to changes in technology, consumer demand, and product obsolescence.

Original Ideas

New and unique concepts not based on existing products, services, or ideas, often identifying a gap in the market.

Adapting Existing Products

Involves taking an existing concept and improving it or making it suitable for a different market or customer base.

Business Failure

Occurs when a business cannot meet financial obligations or generate enough revenue, leading to job losses and financial ruin.

Financial Loss

A risk businesses face that results in reduced profitability, competitiveness, and investment ability.

Lack of Security

A risk in terms of data, intellectual property, or physical security breaches, leading to reputational damage and loss of customer trust.

Business Success

Occurs when a business meets or exceeds its objectives like generating revenue and achieving profitability.

Profit

A measure of business success enabling reinvestment, dividends, and financial stability.

Independence

Allows businesses to make their own decisions without external stakeholder demands.

Purpose of Business Activity

Activities that produce goods or services meeting customer needs while adding value.

Adding Value

Differentiating products from competitors, creating a unique selling point, and increasing customer satisfaction.

Branding

Creating a brand that customers perceive as superior, allowing for higher prices and increased added value (e.g., Apple).

Convenience

Offering more convenient options to customers, justifying a higher selling price (e.g., Persil tablets).

Quality

Using high-quality materials and packaging to enhance the customer experience and justify a higher price (e.g., Jo Malone).

Unique Selling Points (USPs)

Offering customizable options to gain a competitive advantage and charge a higher price (e.g., MoonPig).

Design

Incorporating robust features and appealing design to gain a competitive edge and support a premium price (e.g., Samsung Galaxy Watch 5).

Entrepreneur

A person willing to create a business idea, take risks, and identify opportunities.

Organizing Resources

Gathering and coordinating resources to start and operate a business.

Making Business Decisions

Decisions that determine the success or failure of the business, requiring market research and business skill.

Taking Risks

Involves financial, personal, or professional risks that, if managed, can lead to significant rewards.