101 Enterprise (opportunities)

Question 1

What is enterprise?

Answer 1

Enterprise mean having the skill and taking the initiative and the risk to make a business happen. An enterprise is also another name for a business.

Question 2

What does SME mean?

Answer 2

Small and medium sized enterprise

Question 3

what is small turnover?

Answer 3

turnover less than £50m

Question 4

SME’s in the UK - how many private businesses were in the UK at the start of 2019?

Answer 4

There were 5.9 million private businesses in the UK at the start of 2019

Question 5

Of the 5.9 million private businesses in the UK at the start of 2019, how many of these were SME’s ?

Answer 5

Of these, 5.8 million were SME’s which 99.9% of all UK businesses (0-249 employees)

Question 6

How many employees are in medium-sized businesses?

Answer 6

50-259 employees

Question 7

How many employees are in small businesses?

Answer 7

10-49 employees

Question 8

How many employees are in micro-businesses?

Answer 8

0-9 employees

Question 9

What are needs?

Answer 9

Need are what people require to survive. Food, warmth, shelter and clothing. Education, healthcare and security could be added to this.

Question 10

What are wants?

Answer 10

Wants are what people desire, what they would like to have e.g. better clothes, technology, holidays, entertainment. Not just basic functional items.

Question 11

Are needs and wants limited?

Answer 11

Needs are limited but wants are unlimited

Question 12

Are needs and wants fixed?

Answer 12

Needs and wants are not fixed, they change over time which gives entrepreneurs opportunities to enter the market to meet consumers’ wants and needs.

Question 13

What 4 ways can business opportunities be found?

Answer 13

where a market needs exist, where a service can be offered to a business, through looking at or listening to complaints about a product or service and through the internet.

Question 14

What is meant by a business identify opportunities through where a market need exists?

Answer 14

This is a market that has not been targeted or where the product can be improved upon.

Question 15

Why is a service that can be offered to a business identifying a business opportunity? / why would a business want a service, how could this benefit them?

Answer 15

To help them increase their sales, production or communication.

Question 16

How can business opportunity be found on the internet?

Answer 16

Small businesses as well as large can find a market online. SME’s can find sufficient customers online where they might not have in a location are.

Question 17

What is an entrepreneur?

Answer 17

An entrepreneur is a person who uses an idea and starts a business taking on the (financial) risks in the hope of making a profit (reward).

Question 18

What is the role of an entrepreneur / what d they do?

Answer 18

Someone who starts and runs a business, they make products or provide a service, they employ people and they make profits and pay taxes on these which contributes towards the funding of public service.

Question 19

What is a key feature of an entrepreneur?

Answer 19

Many entrepreneurs are innovators. They bring new ideas to the market and drive the development of new technologies.

Question 20

What are 7 reasons motivate entrepreneurs?

Answer 20

Earn an income and to make a profit, turn a hobby or a pastime into a business, use redundancy money/because of unemployment, to be their own boss, to make use of skills, because they have identified a gap in the market and because of few job opportunities and the availability of government grants.

Question 21

What are 6 characteristics and skills of entrepreneurs?

Answer 21

• Being a risk takers, willing to take a chance on their idea
• Taking the initiative and being proactive
• being an effective organiser
• Having creativity and being innovative
• Being hardworking
• Being determined and having perseverance - lots of successful entrepreneurs have had failed business ideas

Question 22

What are 4 importance’s of SME’s and entrepreneurs?

Answer 22

1) Innovators- bring new ideas to the market and drive the development of new technologies
2) Improving products and services
3) Help the economy by creating new jobs
4) Government benefiting from taxation that is generated from the revenues of the business

Question 23

What are the sectors of the economy?

Answer 23

primary sector, secondary sector and tertiary sector.

Question 24

What does the primary industry do?

Answer 24

These industries extract raw material directly from the earth or sea

Question 25

What does the secondary industry do?

Answer 25

These industries process and manufacture products from raw materials

Question 26

What does the tertiary industry do?

Answer 26

These industries provide a service

Question 27

Which industry/ sector is the most important in the UK, in terms of employment?

Answer 27

The tertiary- they employ approximately 80% of those who are in employment

Question 28

what percentage of those employed in the UK work in the secondary or primary sector?

Answer 28

secondary sector - 18% primary sector - 2%

Question 29

SME's create jobs, how many people in the UK are employed by SME's?

Answer 29

around 16.3 million, contributing to 60% of all jobs in the UK

Question 30

What are 4 disadvantages of SME's to the economy?

Answer 30

1) They are small scale and more likely to fail in times of recession and hardship 2) They have a high failure rate. Around 80% of UK companies fail within their first year. 3) Smaller budgets- don't have funds to compete with larger organisations, advanced technology etc 4) They don't have economies of scale therefore have higher production costs and cannot charge lower prices o consumers

Question 31

What are 7 examples of stakeholders in a business?

Answer 31

Shareholders, directors and managers, employees/workers, customers, suppliers, government and local communities

Question 32

what is a shareholders interest in a business?

Answer 32

they want the business to make a profit so that they will receive a dividend and the value of their shares will rise which means their wealth has increased. the business will want to please them as the shareholders are a source of finance.

Question 33

What is the directors and managers interest in a business?

Answer 33

Their salary/bonus is often linked to company profits their aim is often (not always) to retain their job and to make as much profit as possible. This could conflict with other stakeholders e.g. employees.

Question 34

What is an employees/workers interest in a business?

Answer 34

Their interests is wages/salary and good working conditions/job security. A wage rise/better working conditions could raise costs and reduce profit so there are conflicts with other stakeholders who want the highest possible profit.

Question 35

What is a customers interest in a business?

Answer 35

They want an efficient service and quality product, at a competitive price. This can cause conflicts as lower prices and high quality could decrease profit.

Question 36

What is a suppliers interest in a business?

Answer 36

They want a fair price and to paid on time.

Question 37

What is the governments interest in a business?

Answer 37

Wants the business to pay tax on their profits and to employ people. The less employment, the less the government has to pay in benefits and the more revenue it can collect from taxes. More recently it wants a decrease in pollution but this can cause conflict as it raises costs, reducing profit.

Question 38

What is the local communities interest in a business?

Answer 38

Want the business to act responsibly and