Cambridge IGCSE Enterprise Revision Guide

Comprehensive vocabulary flashcards covering key enterprise definitions, frameworks, methodologies, and concepts across Chapters 1, 2, 3, 4, 5, 6, 9, and 10 of the Cambridge IGCSE Enterprise Revision Guide.

Enterprise

An organisation or business managed by one or more individuals who are able to take the initiative to make decisions and take calculated risks.

Business Enterprise

An organisation that has profit as its main aim, where profits generated are reinvested into the business or distributed to owners/shareholders.

Social Enterprise

A non-profit organisation started up for a social cause for the betterment of society, where profits sustain the enterprise and benefit the community.

Entrepreneur

A person who starts up a new business or enterprise.

Stakeholder

An individual, group, or organisation with an interest in the activities of a business.

Calculated Risk

A risk taken when expected returns outweigh potential losses.

Sole Trader

An unincorporated business owned and run by one person featuring unlimited liability, low setup costs, and full control.

Partnership

An unincorporated business owned by 2 or more people with unlimited liability, shared workload, and shared decision-making.

Unlimited Liability

A legal status where the business owner is personally responsible for all debts of the enterprise.

Knowledge

Theoretical facts and information gathered through experience or education.

Skills

The ability to do something, either natural (e.g., encouraging others) or learned (e.g., time management).

Skills Audit

A process where an enterprising person identifies and evaluates their own strengths and weaknesses to address skill gaps and evaluate risks.

Reward

Recognition of effort or return for something achieved.

Opportunity

A time or event that makes it possible to do something.

Risk

The chance of gaining or losing something as a result of an action.

Ethics

Moral values and principles governing behaviour or business conduct beyond legal baselines.

PEST Analysis

An external audit framework analyzing Political, Economic, Social, and Technological environmental influences.

SWOT Analysis

A strategic planning tool examining internal Strengths and Weaknesses along with external Opportunities and Threats.

MATE Framework

A risk management strategy model comprising Mitigate, Accept, Transfer, and Eliminate.

Risk-averse

An attitude to risk characterized by avoiding risk completely.

Risk-keen

An attitude to risk characterized by being willing to accept high risks.

Risk-reducer

An attitude to risk characterized by taking active steps to minimize potential risk impact.

Market Research

The process of collecting, collating, and analyzing data about customers, competitors, or a market.

Quantitative Data

Numerical information (e.g., sales figures, closed surveys) that is easy to present in charts and analyze statistically.

Qualitative Data

Information based on opinions, attitudes, and reasons (e.g., open-ended interviews) that provides detail but is harder to compare visually.

Primary Market Research

Field research that involves collecting original, new information directly for a specific purpose.

Secondary Market Research

Desk research that involves using existing data previously gathered for another purpose.

Test Marketing

A primary market research method where a product is released to a small section of the market to observe real purchasing behavior before a full launch.

Aim

An overall long-term goal that an enterprise wants to achieve.

Objective

A specific, short-term target set to reach an aim, which must be SMART (Specific, Measurable, Achievable, Realistic, Time-based).

Action Plan

A structured list of tasks, responsibilities, deadlines, and monitoring methods needed to complete a set goal.

Business Plan

A formal document outlining enterprise aims and operational strategies across marketing, operations, human resources, and finance.

Source of Finance

How an enterprise obtains the money required to operate.

Internal Finance

Money generated or found within the enterprise, such as personal savings or retained profit.

External Finance

Money sourced from outside individuals or institutions, such as bank loans or venture capital.

Interest

An additional charge paid back to lenders on top of borrowed capital.

Bank Overdraft

A flexible, short-term arrangement allowing an enterprise to overdraw its bank account, which carries high interest rates.

Bank Loan

Fixed-term borrowing that requires collateral and a business plan, carrying the risk of asset seizure upon default.

Leasing

Renting machinery or equipment on a monthly basis, avoiding high upfront capital costs without transferring ownership.

Government Grants

Non-repayable funds provided by the government for specific initiatives, subject to strict conditions and a lengthy application process.

Retained Profits

An internal finance source where earned profits are reinvested back into the business, avoiding debt and interest but reducing dividends.

Crowdfunding

An external financing method of gathering small amounts of money online from a large crowd of individual investors.

Venture Capital

External investment from professional investors funding high-growth startups in exchange for equity and board seats.

Microfinance

Small loans provided to low-income entrepreneurs who lack access to traditional banking, often carrying high interest rates.

Marketing

Anticipating, identifying, and satisfying customer needs profitably.

Customer Retention

Measuring customer loyalty and keeping repeat buyers.

Customer Satisfaction

The extent to which products meet or exceed customer expectations.

Sponsorship

Financial support given to an event or person in exchange for brand exposure.

Informative Advertising

A promotion method featuring factual product specifications, prices, and locations.

Persuasive Advertising

A promotion method that appeals to consumer emotions and desires to spur instant buying action.

Negotiation

A discussion to reach agreement on a course of action or solve disputes, satisfying all parties involved.