AOS 1 Business Idea Flashcards
(27 cards)
What is entrepreneurship?
The process whereby a person creates and operates a new business, usually in response to opportunities, while taking on the risk of the venture in the hope of making a profit.
Entrepreneurship often involves identifying gaps in the market and developing solutions.
Define innovation in the context of business.
The change, improvement, and/or transformation to an already existing product.
Innovation can also refer to new methods, ideas, or products that enhance business operations.
List three benefits of entrepreneurship.
- Keeping profits
- Call the shots
- Get to build something
These benefits highlight the autonomy and potential financial rewards of being an entrepreneur.
What is a business opportunity?
A set of circumstances that a person can perceive as an avenue to success, such as an idea for a new product or new customers.
Identifying business opportunities is a crucial step in the entrepreneurial process.
What are the sources of opportunities in entrepreneurship?
- Recognising and taking advantage of market opportunity
- Changing customer needs
- Research and development
- Technological development
- Global markets
These sources highlight the dynamic nature of entrepreneurship and the importance of being responsive to market changes.
How do entrepreneurs seek growth?
By seeking new trends, exploring new products, and adopting new approaches.
This pursuit of growth is essential for business expansion and sustainability.
Decision-Making definition
The process of acting upon the best info available in order to determine the most appropriate course of action
What do S.M.A.R.T goals stand for? What are they for?
S- Specific
M-Measurable
A- Attainable
R- Realistic
T- Time-bound
They are a systematic, structured method to develop business objectives
What types of goals are there in a business?
Financial and Social goals
What do Financial goals focus on?
Target aimed at improving commerical sucess such as profit, revenue and sales. A measure of this is KPI’s.
What do Social goals focus on?
Targets aimed on the improvement of performance, related to people and the planet. A measure of this is CSR, eg. renewable energy goals
Definiton of Market Opportunities
a product that is potenially wanted or needed by consumers is identified by a business and is not being supplied by rivals
eg. online shopping
Definition of demand
the desire to purchase goods and services
Define KPI’s and what they stand for
Key Performance Indicators - criteria used to measure the efficiency and effectiveness of business performances.
Quantitative evidence is the profit, market share,net profit, number of sales.
Qualitative evidence is the feedback from customers
What is the resourcefulness of an entrepreneur?
Their ability to overcome provlems by using what is at hand, minimizing costs which allows them to maximize profit during development.
What are Business Managers and 4 skills they have?
-runs a business on a day-to-day basis so that it makes profit, and have ideas for solving a problem in order to satisfy tager market
1. communication
2. planning
3. knowledge
4. experienced in area
What are three things most Entrepreneurs tend to have?
- A shared vision - clear understanding and hope for future of business
- Inititative- take first step in a series of actions
- Innovation + Enterprise - (I) adding a new product to an existing one/improving significantly
(E) is the effort made to creatively achieve something new
6 skills Entrepreneurs should have?
- creativity
- management skills
- courage
- resilience
- not afraid of making mistakes - persevering
- knowledge of market
research and development definition
directing resources such as money towards discovering, creating and innovating new products and processes
Definition of Globalisation?
The trend that sees people, $, goods and ideas move around the world faster and cheaper than before
What are the 4 reasons people start a business?
- Financial + personal independence
- To make Profit
- To fulfill a Market need
- To fulfill a Social Need
What are risk/costs of being an entrepreneur?
-hard work
-meeting changing demands
-risk of failure
-difficult in selling
-constant solving problems
-cost of money and time
what is the benefit of technological advancements?
-improves efficiency
-offers solutions
-can be used to improve customer experiences
-can improve existing products
eg. taxi- riding services
What is a market share?
The percentage % of total sales in a specific industry generated by a particular business
