Business - 1.1 Enterprise and entrepreneurship

What is an entrepreneur?

• A person who spots an opportunity to provide goods or services to customers in order to make a profit
• The process/activities by which new businesses are formed in order to offer products and services in a market.

What is meant by enterprise?

• A person who spots an opportunity to provide goods or services to customers in order to make a profit
• The process/activities by which new businesses are formed in order to offer products and services in a market.

What must a company do to ensure any new idea is successful?

• Check it satisfies a customer need = market research
• Carry out a successful launch of the product/service

Define the term 'risk'

• A person who spots an opportunity to provide goods or services to customers in order to make a profit
• The process/activities by which new businesses are formed in order to offer products and services in a market
• This is the possibility that the business will have a lower than expected profit or a loss
• Check it satisfies a customer need = market research

Define what is meant by the term 'reward'.

• This is the possibility that the business will have a lower than expected profit or a loss
• This is the benefit of having a business which may be keeping the profit, working for yourself or being able to take holidays when you want

The reward for enterprise is?

• Profit
• Hard work
• Risk
• Self-discipline

Which of the following is not a risk of running your own business?

• Recession /economic / political problems and instability
• Poor reputation  which can lead to loss of sales, loss of revenue and loss of profitability
• Commercial risks, failure of suppliers to supply and customers to pay
• Better work/life balance

What is meant by a financial risk?

• Businesses rely on equipment 24/7.  If this breaks down this leads to lower production and repair costs.
• Setting up a business can mean you lose your own or the banks money
• It is critical that suppliers supply equipment to businesses. Customers need to pay for goods/services.
• Blockbusters failed to address the threat of Netflix as they had no digital content available online.

A reward for setting up your own business is.....

• You work for someone else and get a salary and holiday entitlement.
• Be your own boss, make your own decision and change the business as you want.

Entrepreneurs get a ............. from building up their own business which can increase happiness and personal fulfillment.

• Lot of profit
• Great sense of satisfaction