enterprise and entrepreneurship

Enterprise & Entrepreneurship REVISION

Entrepreneurs:

• Changes in technology

• Changes in what consumers want

• Obsolete products

Opportunities

• Makes expensive technology affordable

• E- commerce and m- commerce

• Social media- promotional strategyp

The dynamic nature of a business:

New Ideas= original ideas, adapting an existing product

A good business idea

• Using changing technology

• Spotting a new trend emerging

• More affordable/ simpler and easier products

• Convenience and accessibility

• Problem solving

• Gaps in the market

• Meeting the customer’s needs

Adapting ideas

If customers change the business may have no choice about making new products

Risk & Reward

Risk

Business failure- ultimate risk regardless of size or scale

Financial loss- losing financial investment

Lack of security- leaving employment to start business venture

Minimising risk= start small, build up reputation, test marketing, cash flow, fair prices, low-cost marketing

Business failure- lack of demand, poor cashflow, poor responds to new markets

Reward

Business success- it is subjective and can be measure differently

Profit- ‘profit is what happens when you do everything else right’

Non-financial rewards- recognition, reputation, campaigns, awards, self-satisfaction

Philanthropy- promotes the welfare of others by making generous donations to good causes

Role of an entrepreneur:

Resilience, hard- working, creative, decisive, a good communicator

They need to organise

• Capital (money and equipment)

• Labour (people and human resources)

• Enterprise (the ideas)

• Land (natural resources)

Making decisions- can bring success and failure they need to consider, before, during the growth and after

Opportunity cost- must balance the opportunities they may lose with the ones that they may gain

Take risks- any decision has an element of risk

Role of Enterprise:

Branding, design, quality, convenience, unique selling points

Products & services, needs & wants

Meeting customer needs, to add value, adding value

1. Branding- is the name or image that identifies one business product or services as unique.

2. Design- good product and packaging design adds value to a product.

3. Quality- perceived or actual high quality suggests reliability and longevity.

4. Convenience- offering consumers increased convenience can enable a business to increase market share and charge a higher price in a price sensitive market.

5. Unique selling point (USP)- a feature that differentiates a business from its competitors.