Theme 1 - 1.1 Enterprise and Entrepreneurship - 1.1.1 The dynamic nature of business

Enterprise

Entrepreneurial activity (can also mean a business or company)

Entrepreneur

Someone who creates a business, taking on financial risks with the aim of making a profit from the business

Consumer

someone who uses goods and services

Customer

Someone who buys goods and services

Obsolete out

of

Need The products or services people need to make life comfortable

Want What people choose to spend their money on, once the weekly bills have been paid (rent, water, food)

Good Products that may be fresh, such as apples, or manufactured, such as Heinz beans. They are tangible

Service Providing useful ways to help people live their lives, for example shops, restaurants and hospitals

Venture capital Risk capital provided by an investor willing to take a risk in return for a share in any later profits; the venture capital

Demand The number of units that customers want

and can afford

Competitive advantage A feature of a business that helps it to succeed against rivals

Characteristics/skills of entrepreneur Courage, creativity, determination, communication, organisation

Dynamic nature of business The idea that business is ever

changing because external factors, such as technology, are always changing.

E

commerce Using the internet to carry out business

M

commerce Using mobile technologies, such as smartphones and tablets, to carry out business transactions

Adapting existing products The process of changing an existing product or service so that it is suitable for different customers.

Original idea Ideas that have not been done before