1.1 Business Enterprise & Entrepreneurship Flashcards
All 19 cards in this deck
What is a business?
An organisation that produces goods or supplies services to meet the needs and wants of customers.
What is meant by enterprise?
The activity of seeing a chance to make money from a new idea and taking the risk to make it happen, whether by setting up a new business or by developing an existing one.
Name the four characteristics of an entrepreneur.
Creativity, risk taking, determination and confidence.
How can changes in what consumers want lead to new business ideas?
Existing products may no longer meet customer needs, so an entrepreneur spots a new business opportunity in the market.
How can changes in technology lead to new business ideas?
Technology allows new products to be created, and entrepreneurs then look to create demand for the new product.
What are the three parts of the purpose of business activity and enterprise?
Spotting an opportunity, developing an idea for a business, and satisfying the needs of customers.
What is an entrepreneur?
A person who starts and runs their own business, taking risks in the hope of making a profit.
Why is starting a business a financial risk for an entrepreneur?
A new business needs financial investment to start up, and if the business fails the entrepreneur could lose this money.
Give three risks an entrepreneur faces when starting a business.
Business failure, financial loss and lack of security (losing the regular income from a job).
Give three rewards an entrepreneur may gain from starting a business.
Business success, profit and independence (being their own boss).
What does 'spotting an opportunity' mean for an entrepreneur?
Noticing a gap in the market or an unmet customer need that a new product or service could satisfy.
Give one benefit to a business of satisfying its customers' needs.
Customers buy again (repeat custom), so sales and revenue rise.
Give one way an entrepreneur can develop an idea into a business.
Improve the idea by trialling prototypes and gathering customer feedback before launch.
Which entrepreneurial characteristic is shown by someone who keeps trying new designs despite frequent setbacks?
Determination.
Which entrepreneurial characteristic is shown by an entrepreneur who invents an original product no one else sells?
Creativity.
Give one non-financial drawback an entrepreneur may face from running a business.
Any one of: stress that harms their health; strain on family and personal relationships because the business takes so much time; giving up holidays and free time.
Other than profit, independence and business success, give one reward an entrepreneur may gain.
Self-satisfaction: the pride of making their own idea work, e.g. turning a hobby into a business.
Which entrepreneurial characteristic is shown by someone who believes their idea will succeed and persuades others to back it?
Confidence.
What is meant by "the greater the risk, the greater the reward"?
Entrepreneurs who take bigger risks, such as putting more money into a new idea, may make larger profits if it succeeds, but they also stand to lose more if it fails.