Enterprise and Entrepreneurship

GCSE OCR spec (Made by Jamal Kamara)

what is a product

a tangible item which customers buy

service

an intangible act that a business carries out for you for money

consumer

someone who buys and uses goods and sevices

enterprise

a business or company, or someone who takes a risk in starting a business

entrepreneur

a risk taker who starts a business for financial profit

obsolete

a product or service that is no longer used

original ideas

ideas that have not been used before

Give 5 ways a new business comes about.

an original idea, changes in technology, changes in consumer wants/needs products being obsolete, market gaps

give 3 ways a business may come about (personal)

entrepreneur passion, solving a problem

Identify one way a business could create/innovate a new product.

mixing multiple products, adapting old products, cheaper version of old product

what is an invention

creating something that did not previously exist

risk

something that may lead to failure of a business

business failure

when a business makes no money at all over a long period of time

What are the three main impacts of risks on business activity

business failure, financial loss, lack of security

What are the three main impacts of rewards on business activity.

business success, profit, independance

Identify three risks when starting a business.

financial loss, lack of security, changes in trends, incorrect sale predictions

what are poor reasons for business loss?

poor management, poor market research, poor quality, poor planning

Identify three rewards when starting a business.

profit, independence, satisfaction flexibility,

ability to work form home

business reward

a benefit the business brings to the owner

What are the roles of business enterprise and the purposes of business activity?

produce goods or services, meet customer needs, add value

Identify and explain the four things needed to produce goods and services/the factors of production. (4)

land(where), labor(who), capital(money), enterprise(motivation)

added value

difference between what business pays its suppliers what they charge for products or services

Identify 5 ways that a business adds value to it’s product or service.

branding, design, usp, convenience, quality

Explain the risk that money plays when an entrepreneur starts a new business.

an entrepreneur may not have enough funds to pay for essentials, wages, food by the time they invest all of their money into a business

How is an entrepreneur being their own boss a business reward

they can balance work and life choices and gain independence

competitive advantage

a business has competitive advantage over another when its products are deemed to be better than its competitors by customers

dynamic market

a rapidly changing business environment

Explain how social media has made an impact on businesses.

social media platforms allow customers and business owner to connect on a personal level and see how trends change the marketing gain publicity

market research

involves gathering data about customers, competitors and market trends

equation : value added =

selling price − cost price

what does an entrepreneur have to be?

innovative, risk-taking, hard-working, organised, persuasive and a leader

is starting a business easy (according to famous business people?)

no, it’s very hard work

what are four examples of businesses?

Propercorn, King of Shaves, Mallzee, Superjam