Enterprise and Industry Sectors Flashcards

Vocabulary-based flashcards covering the basics of enterprise, the role of entrepreneurs, and the different sectors of industry within the UK economy.

Enterprise

To gain a profit, turn a hobby into a business, use redundancy money for employment, or be one's own boss.

Needs

A limited number of physical requirements (food, water, shelter, clothing) and psychological/emotional requirements (self-esteem, love) required for survival.

Wants

Unlimited (infinite) desires for a better quality of life, including better housing, longer holidays, and entertainment.

Entrepreneur

Someone who starts and runs a business, risks capital, provides a product or service, and attempts to make a profit.

Characteristics of an Entrepreneur

Being a risk taker, hard working, passionate, proactive, creative, innovative, and an effective organiser.

James Dyson

A classic example of an entrepreneur of Dyson vacuum cleaner fame who brought a range of new products to the market.

Economic Importance of Entrepreneurs

They drive innovation, create new jobs, boost the economy, increase exports, and generate taxation revenue for the government.

Primary Sector

The extractive sector that produces raw materials such as iron ore and oil, or final products like fish and oranges.

Secondary Sector

Manufacturing and construction industries that make, build, and assemble products.

Tertiary Sector

The service sector giving value to people through direct services (e.g., police, hairdressing) or commercial services (e.g., business insurance).

De-industrialisation

The decline in once prosperous secondary industries such as shipbuilding, steel, textiles, and car manufacturing.

UK Employment by Sector

The tertiary sector employs approximately $80\%$, the secondary sector accounts for $18\%$, and the primary sector for $2\%$.

Reasons for Secondary Sector Decline

De-industrialisation, foreign competition (Japan, Korea), lack of investment, technology replacing workers, and relocation abroad for lower costs.

Reasons for Tertiary Sector Growth

The creation of new business types (fitness centres, online shopping), greater affluence, and an education system geared toward service employment.

Hi-tech Industry

Industries such as computers, telecommunications, and aerospace that focus on research, development, and maintaining competitiveness.

Competitive Factors (Secondary Sector)

Developing countries like China and India pose a challenge to the UK secondary sector due to their low labour costs.