A business enterprise is any type of operation that is involved in providing goods or services with the anticipated outcome of earning a profit.
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Factors of production
Factors of production are the inputs needed for the creation of a good or service.
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What are the factors of production?
Land, Labour, Capital and Enterprise.
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What is an entrepreneur?
An entrepreneur is someone who runs their own business in the hopes of making profit and is willing to take risks to achieve business success.
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Motives for becoming an entrepreneur
To make a profit
To be their own boss
To take advantages of opportunities
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Key analysis for profit motive
Profit can be reinvested back into the company, gives entrepreneur a sense of pride, allows entrepreneur to have a higher standard of living, entrepreneur gains satisfaction.
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Key analysis for btob motive
They can make their own decisions, provides them with fulfilment, gives them control over their life, can be motivational.
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Key analysis for advantage of opportunities motive
Gap in the market allows them to fulfil a demand that isn't being fulfilled, they can maximise their revenue, gain profit, should reduce risk of failure.
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Ethical motives (only for certain case studies)
Could be to provide employment, help community or solve an environmental problem.
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Key entrepreneurial characteristics
-Determined -Risk taker -Innovative
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Determined analysis
This means they persevere and are persistent, which allows the business to improve, leads to an increase in competitiveness and reduces risk of failure.
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Risk taker analysis
Taking a risk leads to growth and progress, increases competitiveness and strengthens market position
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Innovative analysis
The firm will differentiate themselves, allows them to maximise sales, increasing their market share.
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