Topic 1.1 - Enterprise and entrepreneurship

Dynamic nature of business

The idea that business is ever-changing because external factors, such as technology, are always changing

Venture capitalists

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses; risk capital provided by an investor willing to take a risk in return for a share in any later profits; the venture capital provider will take a share stake in the business

Demand

The number of units that customers want - and can afford - to buy

Entrepreneurs

Business people who see opportunities and are willing to take risks in making them happen

Obsolete

A product or service with sales that have declined or come to an end as customers find something new

Adapting existing products

Finding new products based on the original one, such as Wall's White Chocolate Magnum.

Competitive advantage

A feature of a business that helps it to succeed against rivals.

Original ideas

Ideas that have not been done before

Business failure

The collapse of a business, probably leading to its closure

Independence

The need by many business owners to make their own decisions and be their own boss

Lack of financial security

Uncertainty for the business owner about day-to-day family income and assets

Risk and reward

The balance between the worst that can happen and the best that can happen

Customer needs

The products or services people need to make life comfortable

Customer wants

What people choose to spend their money on, once the weekly bills have been paid

Goods

Products that may be fresh, such as apples, or manufactured, such as Heinz Baked Beans

Services

Providing useful ways to help people live their lives, for example shops, restaurants and hospitals

Branding

Giving a product or service 'personality', with a name and logo that makes it stand out

Unique selling point (USP)

An original feature of a product that rivals aren't offering; makes a product stand out from its competitors

Value added

The difference between the selling price and the cost of bought-in goods and services (the difference that creates the possibility of profit)

Business decisions

Choices that have to be made, usually within a short time period

Human resources

A term used by organisations that simply means employees

Resources

Things or people that can be used to help build and run the business

Risk taking

Making decisions where unknown factors or chances of failure loom large in the decision-maker's mind