Topic 1.1 Enterprise and entrepreneurship

What does “the dynamic nature of business” mean?

Business is constantly changing due to new ideas, technology, consumer needs, and competition.

Why do new business ideas come about? (3 reasons)

• Changes in technology

• Changes in what consumers want

• Products/services becoming obsolete

Give an example of changes in technology creating new business ideas.

Smartphones led to new apps, delivery services, and mobile banking.

Give an example of changes in consumer wants creating new business ideas.

Consumers wanting eco-friendly products → businesses offering reusable bottles.

Give an example of a product becoming obsolete.

DVDs became obsolete due to online streaming.

How can new business ideas come about? (2 ways)

1. Original ideas (new inventions or unique products)

2. Adapting existing products/services/ideas

What is meant by risk in business?

The possibility of something going wrong, leading to negative consequences.

What are 3 main risks entrepreneurs face?

• Business failure

• Financial loss

• Lack of security

What is meant by reward in business?

The benefits an entrepreneur gains from taking a risk.

What are 3 main rewards of starting a business?

• Business success

• Profit

• Independence

Give an example of a financial risk.

Investing money in a new shop that fails to attract customers.

Give an example of a reward.

An entrepreneur earning high profits and gaining independence from being their own boss.