KEY DEFINTIONS/ FORMULAS FOR BUSINESS OPPORTUNITIES Flashcards
SMEs
Small and Medium-sized Enterprises.” This term refers to businesses that fall within a certain size range in terms of their annual revenue, number of employees, or other criteria, depending on the country and industry.
enterprise
A person spotting a business opportunity and setting up a business business ideas come about for a number of reasons often because they feel their needs aren’t being met
business opportunities
needs and wants are not fixed. they can change quickly as fashions and lifestyles change and also over the longer term as incomes increase and population change, meaning the markets are always changing and new opportunities are constanty arising.
market
a meeting place between buyers and sellers where goods and services are exchanged, usually for money.
competition
competition refers to the rivalry and interaction between companies operating in the same market or industry, as they strive to attract customers, increase market share, and achieve superior performance relative to their competitors
market share calc
sales of a business /total sales in a market X100
market segmantation
breaking down a market into subgroups that share similar characterisitcs identifying and targeting of groups of people with similar needs and developing products or services for each of them
demand
the quantity of a goof or service consumers are willing and able to purchase at a given price
supply
thw quantity of goods or services producers are willing and able to supply at a given price
equilibrium price
in a free market demand and supply equal the equilibrium price. this is where the quantity demanded is equal to the quantity supplied
market research
the action or activity of gathering information about consumers’ needs and preferences, competition, size of market etc
primary research
Gathers first hand information directly relevant to the needs of the business
secondary research
Involves the use of previously collected information not specifically gathered for the business but adapted for use
quantitative data
involves collection of data that can be measured, statistical data such as sales figures and market share
qualitative data
involves collection of data about attitudes, beleifs, intentions e.g., through focus groups participant observation and interviews