1.1: Enterprise + entrepreneurship Flashcards
What can new technology do for products
- make products faster
- make goods smaller/more compact
- reduce prices
- make products easier to use
- make products safer
How can customer needs change
- changes in fashions
- changes in the economy
- changes in demographics
- changes in lifestyle
- changes in technology
What is obsolescence?
When a product becomes out-of-date or no longer used
Why do products become obsolete
- Changes in customer needs
- Introduction of new technology
- Competitors creating a superior product
What is planned obsolescence
Products are designed to only last a short time, before encouraging consumers to buy newer and improved versions of the original product
What are some rewards of starting a business
- Business success
- Profit
- Independence
What are some risks of starting a business
- Business failure
- Financial loss
- Lack of security
How is risk reduced when setting up a business
- Detailed market reseach
- A business plan
- Keeping up with competition
- Raising sufficient start-up finance
What makes some businesses riskier than others
- Seasonal demand
- Small market
- Highly competitive market
- Incompetency
What is a business/enterprise
A person/organisation that produces goods/services to meet the needs of customers
What is the difference between a customer and a consumer
Customers buy a product, while consumers use it
How is value added to a product
- Convenience
- Brand
- USP
- Design
- Quality
What is an entrepreneur
A person who owns and runs tehir own business
How does an entrepreneur build up a business
- Have an idea
- Take a risk
- Organise resources
- Employ people
- Make decisions
- Establish and grow
What skills do entrepreneurs have
- Risktaking
- Initiative
- Willingness
