VCE BusMan Unit 1 AOS 1

Entrepreneurship

The act of starting and operating a new business by identifying opportunities and taking risks in hopes of making a profit.

3x ideas of entrepreneurship

Pursuit of business opportunities, seeking growth, innovation

Financial independence

The ability of an individual to support their own lifestyle by being in control of their own income and expenses without relying on an employer.

Personal independence

The freedom of an individual to manage their own work, lifestyle and business without restrictions from an employer

To make a profit

Earning more income by operating a business rather than working for an employer.

Fulfil a market need

Addressing a gap in the market by providing a product or service that is in demand but not available

Fulfil a social need

The production of goods and services that contributes to societal needs

Strengths and limitations of starting a business

(+) Being your own boss
(+) Increasing personal wealth

(-) Hard and long work hours

(-) Risk of failure

Manager

Employee responsible for overseeing business operations and ensuring that goals are successfully achieved

Characteristics of a manager

Leadership qualities, Taking calculated risks, Communication and listening

Entrepreneur

A person who seizes opportunities and takes the risk of starting a business by identifying opportunities in the market in order to make profit.

Characteristics of an entrepreneur

A shared vision, Initiative, Innovation and enterprise

Innovation

Significantly improving an already existing good, service or product

Invention

The development of a brand new product

Changing customer needs

Changing income
Changing tastes and fashion
Changes in the number of potential customers

Research and development (R&D)

the process businesses use to improve existing products, create new ones, and enhance production methods.

Technological development

Allows for new business ideas and opportunities to be fulfiled

Global markets

Allows goods and services to be exchanged between business and customers across the world, which provides access to more customers and sales.

SMART Goals

Specific, Measurable, Attainable, Relevant, Time bound

Vision statement

describes where the business wants to be in the future (e.g five years from now)

Mission statement

describes what the business will do and how it will achieve its vision

Financial goals

Target that aim to improve the financial performance of a business

3x financial goals

Making a profit

Increase sales

Increase market share

Social goals

Targets that aim to improve the welfare of the community, environment or employees of a business.

3x social goals

Reduce the business’ impact on the environment

Resolve community issues

Advocate for employee welfare

Business opportunity

A chance to start/grow a business by fulfilling market needs

Concept development

Researching and conducting studies on how to make a business concept a viable approach

Relationship b/w business opportunity and concept development

Ideas come from assessing business opportunities, leading to the development of the business concept.

Trademark

Protection of business reputation and identity (logos, slogans, etc)

Patent

Protection of tangible business ideas which haven’t been developed yet

Copyright

Protection of product and original work from unauthorized use.

Market research

A process involving gathering and analysing information concerning a specific market.

3 steps of market research

Identifying the information (qualitative/quantative)

Gathering relevant information from appropriate sources (surverys, interviews)

Analysing and interpreting results (determine if there is a demand and market conditions)

Feasibility study

An assessment of the business ideas potential for success

Inclusions of a feasibility study

an assessment of a market

a consideration of the operations

an analysis of commercial feasability

DIfference b/w market research and feasibility studies

Market research solely focuses on gathering and analysing information concerning a specific market to determine a need, whilst feasbility studies determine how practical a business concept is and its potential for success

Relationship b/w market research and feasibility studies

Both are essential to determine the viability of a business concept in order to increase chances of success

Economic wellbeing

level of income, consumption and wealth people have to support their material living standards.

3x contributions to economic wellbeing

Economic growth (GDP → higher GDP = stronger economy)

Employment

Taxation revenue

Social wellbeing

Measures the quality of life individual have reflected by their living standards

3x contributions to social wellbeing

General happiness

Crime rates

Environmental quality

Corporate Social Responsibility (CSR)

The obligations a business has above its legal responsibility to the wellbeing of employees, customers, the community and the enviornment.

Council grants

Sum of money provided to small or new businesses which are used to cover establishment costs, purchasing machinery/equipmen and paying labour costs.

School-based educational programs

Providing awareness of entrepreneurship through education and information programs.

Regional business start-up hubs