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.