Enterpise, Business and the Economy (Topic 1.2)

Renewable resources

Natural resources that replenish at a faster rate than they are depleted

Non Renewable resources

Natural resources that exist in limited supply and are depleted through use

Land

Natural resources that can be extracted and used to produce output.

Labour

Human workforce

Capital

Man made machinery to help and assist production rates

Enterprise

The entrepreneur who takes risks and combines the other 3 factors, to make profit.

Characteristics of a entrepreneur

1. Leadership

2. Communication

3. Punctuality

4. Management

5. Critical thinking

6. Influential

7. Forecasting

8. Innovative

Entrepreneurial motives financial

Profit maximisation (high return on investments to build person wealth)

Profit satisficsing (earning enough without working excessive hours)

Financial security (financially independent)

Entrepreneurial motives non-financial

Motives drives by personal fulfilment ethics’s or lifestyle choices rather than money.

Independence - being your own boss, choosing your own working hours

Ethical motives - protecting environment

Personal challenge / home working - desire to prove oneself, or flexibility to work at home around family