1.1 enterprise and entrepreneurship

Why do new business ideas come out?

new business ideas come out because

1. Changes in

   ¬ what consumers want

   ¬ Technology

2. products and services are becoming obsolete

new Business ideas come through the process of

1 original ideas

2. adaptation on existing products, services and ideas

MODEL ANSWERS

• new ideas come throuh an acknowldgement of changes in costmer needs/ technology

• this leads to a gap in the market which means that the business can create innovations,

• resulting in an increase in revneue/ a new prodyct that satisfies customer needs

(2) Risk and reward

RISKS

¬business failure (ppor cash flow / fall in revenue / action of competitiors)

¬ financial loss ( lose capital that is invested included personal assessts if business has unlimited liabillity)

¬ lack of security (no guranteed income, no sick pay ect)

REWARDS

¬ business sucess (growth/recognition/personal satisfaction)

¬ profit ( revenue exceeds costs over sustained time)

¬ independence

The importance of added vaule

what is it?

what are the details of it?

benefital because:

• goes towards companys FIXED costs

  ¬ higher added vaule = sooner cos - paid off

  / means quicker profit

• USP

  ¬ another way of added vaule

MOST SUCESSFUL = ONES THAT CAN KEEP COSTS DOWN

¬ combine a rnage of vaules

/ DESIGN + BRANDING

QUALITY

CONVEINEINCE

USP

3 - the role of business in enterprise

role and purpose in business acitivity:

• produce goods and services

• to m eet custoemr needs

• to add vaule : CONVENIENCE/ BRANDING + DESIGN/ QUALITY/ USP

role of an entreprenurship:

• am entrepreneur: organises resources, makes business decisons, take risks