1.1 Enterprise and entrepreneurship

Dynamic nature of business

Refers to the ongoing changes in the business environment, including technology, consumer demands, and legislation.

Risk

The chance of loss or damage, or the probability that something goes wrong, leading to a loss.

Reward

The financial or personal benefits gained from investing in or running a business.

Entrepreneur

An individual who takes calculated risks by starting and managing a business.

Adding value

Selling a product or service at a price higher than its costs, thereby generating profit.

Market research

The process of gathering, analyzing, and interpreting information about a market, including information about the target customer and competitors.

Obsolescence

The state of being no longer useful or necessary, often due to advancements in technology or changes in consumer preferences.

USP (Unique Selling Point)

A feature of a product or service that distinguishes it from competitors, allowing the company to charge a premium price.

Adapting existing ideas

The process of improving or modifying existing products or services to better meet market needs or consumer preferences.

Poor management

A common reason for business failure, characterized by inadequate planning, poor decision-making, and failure to control costs.

Personal experience

Insights gained from an individual's own life and interests, which can inspire business ideas and opportunities.

Observation

The act of watching the world around to identify potential business opportunities by noticing unmet needs or successful concepts in other markets.

Consumer wants

The desires expressed by consumers that influence the types of products and services that businesses produce.

Business experience

The knowledge and skills gained through working in a specific market, which can provide an advantage when starting a new business.

Financial objectives

Goals related to the profitability of a business, such as generating a certain amount of revenue or profit.

Non-financial objectives

Goals related to aspects other than monetary gain, such as work-life balance, personal satisfaction, and social contributions.