Business 1.1 - Enterprise & Entrepreneurship

Reasons for new business ideas: technology?

Changes in technology

Reasons for new business ideas: old products?

Obsolence → products/services become unneeded (e.g. iPod replaced by streaming)

Reasons for new business ideas: customers?

Changes in consumer demand

What are 3 main reasons why new business ideas come about?

• Changes in technology

• Changes in conusmer demand

• Obsolescence of products/services

Why do entrepreneurs create new business ideas?

They recognise changes in the market

What do successful entrepreneurs do when customers need change?

They develop solutions to meet dynamic (changing) needs.

Summarise why new business ideas emerge from entrepreneurs?

• They recognise market changes

• They develop solutions for dynamic customer needs

What happens to old products when technology advances?

They will become obsolete and replaced

How can changes in technology create opportunities for new business ideas?

They allow new products/services to be developed

How does consumer demand lead to new business ideas?

Businesses adapt to changes in what customers want

Why do changing customer needs create opportunities?

They open space for new products and services.

Example of changing consumer demand creating new business ideas?

Growing demand for plant-based food → companies make new products e.g. the McPlant by Mcdonald’s.

Summarise how changes in consumer demand lead to new business ideas

• Consumer demand changes over time

• This creates opportunities for new products/services.

What are the two reasons how new business ideas come about

• Original Ideas

• Adapting an existing product

What are original ideas in business?

New and unique concepts that are not based on existing products/services.

Where do original ideas come from?

When entrepreneurs identify a gap in the market (something no one else is doing) or an unmet need.

Give an example of an original business idea?

McDonald’s adding toys/books in the Happy Meal → targeted young families and increased sales.

Summarise what makes an idea original

• New/unique concept

• Not copied from existing product/service

• Fills a gap or unmet need

What are adapted ideas in business?

Ideas based on existing products/sevices that are improved or changed

Where do adapted ideas come from?

Modifying an existing idea to meet customer needs better or attract new customers

Give an example of an adapted business idea

Apple adapting the mobile phone into a smartphone with apps and the internet

Summarise what makes a business idea adapted

• Based on an existing product/service

• Modified or improved

• To meet customer needs more efficiently

What are risks a business must manage?

Business failure, financial loss, lack of security

What does business failure mean?

The business may not succeed and could close down

What does financial loss mean?

Losing money due to costs being higher than revenue

What does lack of security mean?

Uncertainty for the owner, income and job security aren’t guaranteed.

What are rewards can a business gain?

Business success, profit and independence

What does business success mean?

Achieving goals, building reputation, and growth

What does profit mean?

Earning more revenue than costs → financial gain

What does independence mean?

Freedom to make your own decisions and to be your own boss