Enterprise

Question 1

Definition of enterprise

Answer 1

the process by which new businesses are formed and new products and services created and brought to the market. usually led by an entrepreneur.

Question 2

Define enterprise skills

Answer 2

Skills that allow an individual or organisation to respond effectively to changing market situations.

Question 3

Types of enterprise skills

Answer 3

problem solving

thinking and acting innovatively and creatively

understanding the importance of risk and uncertainty

Question 4

what is an entrepreneur?

Answer 4

an individual who has an idea that he/she develops by setting up a business and encouraging it to grow. they take the risk and the subsequent profits that come with success or the losses that come with failure.

Question 5

The characteristics of successful entrepreneurs

Answer 5

• determination and persistence
• passion
• the ability to spot and take advantage of opportunities
• relevant skills and expertise
• vision, creativity and innovation
• motivation to succeed and not to be daunted by failure
• willingness to take risks

Question 6

Reasons for a business to fail

Answer 6

• lack of finance
• skills shortages
• poor infrastructure
• complexity of regulations or red tape

Question 7

define opportunity cost

Answer 7

the ‘real cost’ of taking a particular action or the next best alternative forgone

Question 8

motives for becoming an entrepreneur

Answer 8

• long-term low interest rates that make it easier to borrow money to start a business
• a change in the political climate so that the government supports the enterprise and entrepreneurial spirit
• increasing affluence

Question 9

ways in which the government supports enterprises and entrepreneurs

Answer 9

-reducing business taxes and trying to establish and maintain a modern and competitive business tax system
-reducing the regulatory burden on new businesses
-reducing barriers to raising finance for small businesses
-promoting a change in the UK’s enterprise culture
-encouraging business start-ups in economically deprived parts of the UK
-introducing legislation to promote competition
-funding projects to raise awareness of enterprise among under-represented groups of people
-reviewing how to encourage unemployed people to move into self-employment
giving financial support to voluntary and -not-for-profit organisations that are carrying out excellent work

Question 10

what is the government’s expert policy unit on small-business issues?

Answer 10

The Enterprise Directorate in the Department for Business, Enterprise and Regulatory Reform (BERR)