unit 1 - enterprise and entrepreneurship

why do new ideas come about?

• To make society better

• Changes in consumer desires

• Technological advancements

• External factors

• Obsolescence of products/services

• Gaps in the market

What are original ideas?

Ideas that are new and have not been adapted from existing products or concepts.

why do new ideas come about?

To make society better

Changes in consumer wants

change in technology

External factors

Obsolescence of products/services

Gaps in the market

Obsolete

Products or services that are no longer produced or are out of date.

Risk

solution involving exposure to danger or loss.

Calculated Risk

change in exposure having carefully assessed for advantages and disadvantages of taking the risk

Entrepreneur

organizes resources, makes business decisions, and takes risks

reward examples

1. Profit 2. Business success 3. Independence.

risks examples

1. Business failure 2. Financial loss 3. Lack of security.

Asset

Something that you own.

Liability

Something that you owe, such as a mortgage, taxes, bills, or loans.

Meeting Customer Needs

satisfying or exceeding customer expectations to encourage them to purchase over competitors

What can lead to business failure?

1. External factors

2. Oversaturated markets

3. Obsolete products

4. Lack of innovation

5. Not meeting customer needs

6. change in shopping habits

7. lack of assets

8. change in laws

9. limited access to finance

Factors of Production

• land

• labour

• capital

• enterprise

Ways to add value in business

Branding, USP, quality, good design, and convenience.