Enterprise and entrepreneurship - Topic 1.1

What is a business enterprise?

The process of identifying new business opportunities, and then taking advantages of it - involves starting up to business or helping a existing one expand by coming up with new ideas

What are the purposes of businesses?

• Provide a good or service

• Meet customer needs

• Add value to existing products

How can business added value to exisiting products?

• Make products more convenient for customers to get or use

• Build a good brand image

• Improve a products design or quality

• Give the product a unique selling point

What is a good?

A physical item

What is a service?

An action peformed by other people to aid the customer

Why do new business ideas come about?

• Changes in technology

• Changes in what customers want

• Goods or services become obsolete

Can be brand new ideas or improvements on old ones

What are entrepreneurs?

Someone who takes on the risks of enterprise activity

What qualitys are needed for entrepreneurs to run a new business?

• Organise resources

• Takes risks

• Make business decisions

What are the risks of running a business?

• Entrepreneurs often use their own money and loans from banks - if a business makes a financial loss you cant pay back the money you borrowed

• Not much security - potentialy loose money and job

• Risks money, effort and time put into the business

What are the rewards of running a business?

• Business becomes a success

• Entrepreneur earns more money

• Independence