Unit 1 - Enterprise and Entrepreneurship

Dynamic nature of business

The idea that business is ever-changing because external factors, such as technology, are always changing.

Venture capital

money provided by large investors to finance new products and new businesses that have a good chance to be very profitable

Why do new business ideas come about?

• changes in technology

• changes in what consumers want

• products and services becoming obsolete

• gap in market

• external factors

• make society better

Demand

the quantity of a good or service that consumers are willing and able to buy

Entrepreneurs

a person who organizes and operates a business or businesses, taking on financial risks in order to do so.

obsolete

products are no longer produced

competitive advantage

a feature of a business that helps it to succeed against rivals

goods

Physical objects such as clothes or shoes

Services

intangible products, e.g. haircut.

Unique selling point ( USP)

Something that makes a product stand out from its competitors

Value added

the difference between the selling price and the cost of product/service

Human resources

a term used by organisations that simply means employees.

Resources

all things used in producing goods and services

risk taking

bearing the uncertainties that are part of the marketing process

innovation

something new

ways to add value

• USP

• branding

• convenience

• quality

• good design

external influences of a business

• inflation

• economy

• natural disasters

• rivals

• changes in society

why would a business fail

• external factors

• oversaturated market

• products becoming obsolete

• lack of innovation

• don’t meet customer needs

• change in shopping habits

• lack of assets

• change in laws

• limited access to finance

factors of production

• land

• labour

• capital

• enterprise