Entertprise Flashcards
What is an enterprise?
Showing intiative taking a risk to set up invest in and run a business opportunity
What is a SME
It is a Small to medium enterprise
What is the classification for a medium enterprise?
Under 250 employees
Under 50 Million in turnover
What is the classification for a small enterprise?
Under 50 employees
Under 10 Million in turnover
What is an entrepreneur?
A person who spots an opportunity and shows initiative and willingness to take risks in order to benefit from the potential reward.
How do they identify business opportunities?
Can they satisfy needs and wants?
Is there a gap in the market that can be filled with an SME
Do enterprises offer a solution to the problem?
What are the steps to creating and setting up a business?
Generating an idea
Asking if the idea can add value
Conducting market research
Drawing up a business plan
Deciding on legal structure
Raising finance
What are the steps to running and developing a business?
Generating a customer base
Designing a marketing mix
Sourcing supplies and managing stock
Keeping financial records
Abiding by legislation
Employing staff
What are some non-financial motives for an entrepreneur?
Ethical stance - Provide a good or service that meets ethical beliefs
Social entrepreneurship - Any surplus revenue earned is used to further support the cause
Independence - Being your own boss
Working from home - Work life balance
What are financial motives for an entrepreneur?
Profit maximising
Financial Freedom
Profit satisficing - To make enough profit to be satisfied but not be profitable
What are 3 different characteristics of a entrepreneur?
Opportunity spotter
Creative
Show initiative
Risk taker
Positive thinker
Hard working
Self motivated
Decision maker
Visionary
Enthusiastic
Determined and persistent
What are the skills required of an entrepreneur?
Communication
Literacy
Numeracy
Information technology
Organisation
Problem solving
Team working
What is the importance of entrepreneurs to the primary market?
Businesses that extract natural resources that can then be used by others to produce resources e.g. farming, fishing and extracting minerals
What is the importance of entrepreneurs to the secondary market?
Businesses that turn raw materials into finished goods or components. Value is added through the manufacturing process
What is the importance of entrepreneurs to the tertiary market?
Businesses that provide services to individuals (B2C) or other businesses (B2B) e.g. banking, retail and telecommunications
